FLCH vs. VNQ

Last updated Jun 5, 2026

FLCH (Franklin FTSE China ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - FLCH is a China Equities fund tracking the FTSE China RIC Capped Index, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 5 years, FLCH returned -4.99%/yr vs 2.54%/yr for VNQ. At a 0.28 correlation, their price movements are largely independent. FLCH charges 0.19%/yr vs 0.13%/yr for VNQ.

Performance

FLCH vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin FTSE China ETF (FLCH) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLCH achieves a -6.60% return, which is significantly lower than VNQ's 9.76% return.

FLCH

• 1D: -0.31%
• 1M: -2.97%
• YTD: -6.60%
• 6M: -7.51%
• 1Y: 5.91%
• 3Y*: 10.54%
• 5Y*: -4.99%
• 10Y*: —

VNQ

• 1D: 1.79%
• 1M: 0.36%
• YTD: 9.76%
• 6M: 8.93%
• 1Y: 11.63%
• 3Y*: 10.05%
• 5Y*: 2.54%
• 10Y*: 5.47%

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

FLCH vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLCH Franklin FTSE China ETF	-6.60%	32.55%	18.00%	-11.21%	-22.74%	-20.87%	30.09%	24.32%	-19.52%	0.91%
VNQ Vanguard Real Estate ETF	9.76%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	0.74%

Correlation

The correlation between FLCH and VNQ is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.26
Correlation (All Time) Calculated using the full available price history since Nov 7, 2017	0.28

FLCH vs. VNQ - Sectors Allocation Comparison

Sectors	FLCH	VNQ
Consumer Cyclical	23.4%	-
Financial Services	18.2%	0.1%
Communication Services	14.2%	0.6%
Technology	12.9%	0.3%
Industrials	9.1%	0.0%
Basic Materials	5.5%	1.1%
Healthcare	5.3%	-
Energy	3.7%	0.1%
Consumer Defensive	3.3%	-
Utilities	2.0%	-
Real Estate	1.7%	97.3%

Return for Risk

FLCH vs. VNQ — Risk / Return Rank

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

FLCH

FLCH Risk / Return Rank: 14
FLCH Sharpe Ratio Rank: 14
FLCH Sortino Ratio Rank: 14
FLCH Omega Ratio Rank: 14
FLCH Calmar Ratio Rank: 14
FLCH Martin Ratio Rank: 13

VNQ

VNQ Risk / Return Rank: 27
VNQ Sharpe Ratio Rank: 26
VNQ Sortino Ratio Rank: 24
VNQ Omega Ratio Rank: 24
VNQ Calmar Ratio Rank: 29
VNQ Martin Ratio Rank: 31

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.

FLCH vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE China ETF (FLCH) and Vanguard Real Estate ETF (VNQ). 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.

	FLCH	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	0.31	0.88	-0.57
Sortino ratio: Return per unit of downside risk	0.57	1.28	-0.71
Omega ratio: Gain probability vs. loss probability	1.07	1.16	-0.09
Calmar ratio: Return relative to maximum drawdown	0.38	1.40	-1.02
Martin ratio: Return relative to average drawdown	0.80	4.41	-3.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLCH vs. VNQ - Sharpe Ratio Comparison

The current FLCH Sharpe Ratio is 0.31, which is lower than the VNQ Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of FLCH and VNQ, 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

	FLCH	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.31	0.88	-0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.17	0.14	-0.31
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.27	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.02	0.27	-0.25

Drawdowns

FLCH vs. VNQ - Drawdown Comparison

The maximum FLCH drawdown since its inception was -62.09%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for FLCH and VNQ.

Drawdown Indicators

	FLCH	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-62.09%	-73.07%	+10.98%
Max Drawdown (1Y) Largest decline over 1 year	-15.52%	-8.34%	-7.18%
Max Drawdown (3Y) Largest decline over 3 years	-25.43%	-17.46%	-7.97%
Max Drawdown (5Y) Largest decline over 5 years	-55.78%	-34.48%	-21.30%
Max Drawdown (10Y) Largest decline over 10 years	—	-42.40%	—
Current Drawdown Current decline from peak	-34.16%	-2.03%	-32.13%
Average Drawdown Average peak-to-trough decline	-30.53%	-13.63%	-16.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.43%	2.64%	+4.79%

Volatility

FLCH vs. VNQ - Volatility Comparison

Franklin FTSE China ETF (FLCH) has a higher volatility of 6.59% compared to Vanguard Real Estate ETF (VNQ) at 4.14%. This indicates that FLCH's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLCH	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.59%	4.14%	+2.45%
Volatility (6M) Calculated over the trailing 6-month period	13.67%	9.41%	+4.26%
Volatility (1Y) Calculated over the trailing 1-year period	19.20%	13.27%	+5.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.59%	18.82%	+10.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.91%	20.70%	+7.21%

FLCH vs. VNQ - Expense Ratio Comparison

FLCH has a 0.19% expense ratio, which is higher than VNQ's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FLCH vs. VNQ - Dividend Comparison

FLCH's dividend yield for the trailing twelve months is around 2.53%, less than VNQ's 3.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLCH Franklin FTSE China ETF	2.53%	2.36%	2.87%	3.47%	2.69%	1.48%	0.91%	1.98%	1.92%	0.01%	0.00%	0.00%
VNQ Vanguard Real Estate ETF	3.63%	3.92%	3.85%	3.95%	3.91%	2.56%	3.93%	3.39%	4.74%	4.23%	4.82%	3.92%

Frequently Asked Questions

Can I hold both FLCH and VNQ in my portfolio?

FLCH and VNQ have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLCH or VNQ?

FLCH has higher volatility (6.59%) compared to VNQ (4.14%). In terms of maximum drawdown, FLCH dropped -62.09% vs VNQ's -73.07%.

Which ETF is better, FLCH or VNQ?

On 5-year performance, VNQ leads with 2.54% vs -4.99% for FLCH. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 4.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLCH or VNQ?

Over the 5-year period, VNQ has performed better with a 2.54% return vs -4.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLCH or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.19% for FLCH.

Which ETF pays a higher dividend yield, FLCH or VNQ?

VNQ has the higher dividend yield at 3.63%, compared with 2.53% for FLCH.

What is the main difference between FLCH and VNQ?

FLCH is categorized as China Equities, while VNQ is REIT. FLCH tracks FTSE China RIC Capped Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.19% for FLCH and 0.13% for VNQ.

Which has better risk-adjusted returns?

VNQ currently has the higher Sharpe Ratio (0.88 vs 0.31), 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.