FLAX vs. LVHD

Last updated Jun 4, 2026

FLAX (Franklin FTSE Asia ex Japan ETF) and LVHD (Legg Mason Low Volatility High Dividend ETF) are both exchange-traded funds - FLAX is a Asia Pacific Equities fund tracking the FTSE Asia ex Japan RIC Capped Index, while LVHD is a Volatility Hedged Equity fund tracking the QS Low Volatility High Dividend Index. Both are passively managed. Over the past 5 years, FLAX returned 7.95%/yr vs 6.06%/yr for LVHD. At a 0.30 correlation, their price movements are largely independent. FLAX charges 0.19%/yr vs 0.27%/yr for LVHD.

Performance

FLAX vs. LVHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin FTSE Asia ex Japan ETF (FLAX) and Legg Mason Low Volatility High Dividend ETF (LVHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLAX achieves a 29.31% return, which is significantly higher than LVHD's 6.72% return.

FLAX

• 1D: -1.11%
• 1M: 10.05%
• YTD: 29.31%
• 6M: 32.11%
• 1Y: 58.93%
• 3Y*: 25.00%
• 5Y*: 7.95%
• 10Y*: —

LVHD

• 1D: -0.14%
• 1M: -1.27%
• YTD: 6.72%
• 6M: 6.51%
• 1Y: 9.60%
• 3Y*: 9.33%
• 5Y*: 6.06%
• 10Y*: 8.03%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FLAX vs. LVHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FLAX Franklin FTSE Asia ex Japan ETF	29.31%	33.72%	9.82%	6.27%	-18.88%	-3.54%	24.17%	17.19%	-12.02%
LVHD Legg Mason Low Volatility High Dividend ETF	6.72%	7.50%	10.18%	-0.95%	-1.82%	26.90%	-1.28%	22.91%	1.12%

Correlation

The correlation between FLAX and LVHD is 0.10, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.10
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (All Time) Calculated using the full available price history since Feb 9, 2018	0.30

Over the past year, the correlation between FLAX and LVHD has dropped to 0.10 - well below their long-term average of 0.30, suggesting their price drivers have been diverging.

FLAX vs. LVHD - Sectors Allocation Comparison

Sectors	FLAX	LVHD
Technology	39.7%	5.9%
Financial Services	17.2%	8.6%
Consumer Cyclical	10.2%	6.8%
Industrials	9.2%	4.6%
Communication Services	6.5%	3.8%
Basic Materials	4.2%	-
Healthcare	3.3%	4.6%
Energy	3.0%	6.7%
Consumer Defensive	2.8%	18.5%
Utilities	2.1%	25.5%
Real Estate	2.0%	15.0%

Return for Risk

FLAX vs. LVHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FLAX

FLAX Risk / Return Rank: 87
FLAX Sharpe Ratio Rank: 90
FLAX Sortino Ratio Rank: 88
FLAX Omega Ratio Rank: 89
FLAX Calmar Ratio Rank: 84
FLAX Martin Ratio Rank: 86

LVHD

LVHD Risk / Return Rank: 28
LVHD Sharpe Ratio Rank: 28
LVHD Sortino Ratio Rank: 27
LVHD Omega Ratio Rank: 25
LVHD Calmar Ratio Rank: 31
LVHD Martin Ratio Rank: 28

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FLAX vs. LVHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE Asia ex Japan ETF (FLAX) and Legg Mason Low Volatility High Dividend ETF (LVHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FLAX	LVHD	Difference
Sharpe ratio: Return per unit of total volatility	3.11	1.01	+2.09
Sortino ratio: Return per unit of downside risk	4.06	1.51	+2.55
Omega ratio: Gain probability vs. loss probability	1.57	1.17	+0.40
Calmar ratio: Return relative to maximum drawdown	4.56	1.56	+2.99
Martin ratio: Return relative to average drawdown	17.96	3.98	+13.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLAX vs. LVHD - Sharpe Ratio Comparison

The current FLAX Sharpe Ratio is 3.11, which is higher than the LVHD Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of FLAX and LVHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FLAX	LVHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.11	1.01	+2.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.47	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.52	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.56	-0.12

Drawdowns

FLAX vs. LVHD - Drawdown Comparison

The maximum FLAX drawdown since its inception was -42.51%, which is greater than LVHD's maximum drawdown of -37.32%. Use the drawdown chart below to compare losses from any high point for FLAX and LVHD.

Drawdown Indicators

	FLAX	LVHD	Difference
Max Drawdown Largest peak-to-trough decline	-42.51%	-37.32%	-5.19%
Max Drawdown (1Y) Largest decline over 1 year	-12.99%	-6.17%	-6.82%
Max Drawdown (3Y) Largest decline over 3 years	-19.29%	-14.29%	-5.00%
Max Drawdown (5Y) Largest decline over 5 years	-38.75%	-16.75%	-22.00%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.32%	—
Current Drawdown Current decline from peak	-1.11%	-4.84%	+3.73%
Average Drawdown Average peak-to-trough decline	-15.41%	-4.05%	-11.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	2.42%	+0.87%

Volatility

FLAX vs. LVHD - Volatility Comparison

Franklin FTSE Asia ex Japan ETF (FLAX) has a higher volatility of 8.58% compared to Legg Mason Low Volatility High Dividend ETF (LVHD) at 2.86%. This indicates that FLAX's price experiences larger fluctuations and is considered to be riskier than LVHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLAX	LVHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.58%	2.86%	+5.72%
Volatility (6M) Calculated over the trailing 6-month period	16.54%	6.64%	+9.90%
Volatility (1Y) Calculated over the trailing 1-year period	19.07%	9.52%	+9.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.02%	12.87%	+6.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.93%	15.50%	+4.43%

FLAX vs. LVHD - Expense Ratio Comparison

FLAX has a 0.19% expense ratio, which is lower than LVHD's 0.27% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FLAX vs. LVHD - Dividend Comparison

FLAX's dividend yield for the trailing twelve months is around 1.83%, less than LVHD's 3.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
FLAX Franklin FTSE Asia ex Japan ETF	1.83%	2.37%	3.12%	2.20%	2.86%	2.38%	1.57%	2.23%	2.35%	0.00%	0.00%
LVHD Legg Mason Low Volatility High Dividend ETF	3.40%	3.35%	4.23%	3.55%	3.30%	2.56%	3.27%	3.30%	3.82%	3.33%	2.48%

Frequently Asked Questions

Can I hold both FLAX and LVHD in my portfolio?

FLAX and LVHD have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLAX or LVHD?

FLAX has higher volatility (8.58%) compared to LVHD (2.86%). In terms of maximum drawdown, FLAX dropped -42.51% vs LVHD's -37.32%.

Which ETF is better, FLAX or LVHD?

On 5-year performance, FLAX leads with 7.95% vs 6.06% for LVHD. On fees, FLAX is cheaper at 0.19% per year. On volatility, LVHD has been the lower-risk option at 2.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLAX or LVHD?

Over the 5-year period, FLAX has performed better with a 7.95% return vs 6.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLAX or LVHD?

FLAX is cheaper with a 0.19% expense ratio, compared with 0.27% for LVHD.

Which ETF pays a higher dividend yield, FLAX or LVHD?

LVHD has the higher dividend yield at 3.40%, compared with 1.83% for FLAX.

What is the main difference between FLAX and LVHD?

FLAX is categorized as Asia Pacific Equities, while LVHD is Volatility Hedged Equity. FLAX tracks FTSE Asia ex Japan RIC Capped Index, while LVHD tracks QS Low Volatility High Dividend Index. Their fees differ too: 0.19% for FLAX and 0.27% for LVHD.

Which has better risk-adjusted returns?

FLAX currently has the higher Sharpe Ratio (3.11 vs 1.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.