FLCH vs. VWO

Last updated Aug 2, 2026

FLCH (Franklin FTSE China ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - FLCH is a China Equities fund tracking the FTSE China RIC Capped Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 5 years, FLCH returned -2.03%/yr vs 6.08%/yr for VWO. Their correlation of 0.85 means they have usually moved in the same direction. FLCH charges 0.19%/yr vs 0.08%/yr for VWO.

Performance

FLCH vs. VWO - Performance Comparison

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

Returns By Period

In the year-to-date period, FLCH achieves a -6.16% return, which is significantly lower than VWO's 9.41% return.

FLCH

• 1D: 0.50%
• 1M: 8.66%
• 6M: -9.56%
• YTD: -6.16%
• 1Y: 1.60%
• 3Y*: 7.92%
• 5Y*: -2.03%
• 10Y*: —
• ALL TIME*: 0.59%

VWO

• 1D: 0.96%
• 1M: -0.49%
• 6M: 4.16%
• YTD: 9.41%
• 1Y: 21.69%
• 3Y*: 14.84%
• 5Y*: 6.08%
• 10Y*: 7.86%
• ALL TIME*: 6.81%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FLCH Franklin FTSE China ETF	$3.84M	$4.46M	$3.18M
VWO Vanguard FTSE Emerging Markets ETF	$386.61M	$469.40M	$499.89M

FLCH vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLCH Franklin FTSE China ETF	-6.16%	32.55%	18.00%	-11.21%	-22.74%	-20.87%	30.09%	24.32%	-19.52%	1.51%
VWO Vanguard FTSE Emerging Markets ETF	9.41%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	3.38%

Correlation

The correlation between FLCH and VWO is 0.73, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.74
Correlation (3Y) Balances recent behavior with more history.	0.78
Correlation (5Y) Shows whether the relationship held over a longer period.	0.83
Correlation (All Time) Calculated using the full available price history since Nov 6, 2017	0.85

The correlation between FLCH and VWO shifts across timeframes, from 0.73 (1 year) to 0.85 (all time), reflecting how their relationship changes across market environments.

FLCH vs. VWO - Sectors Allocation Comparison

Sectors	FLCH	VWO
Consumer Cyclical	23.3%	9.1%
Financial Services	19.5%	19.4%
Communication Services	16.8%	6.6%
Technology	9.9%	34.2%
Industrials	8.0%	7.9%
Healthcare	5.9%	3.7%
Basic Materials	5.4%	7.2%
Consumer Defensive	3.5%	3.3%
Energy	3.4%	3.8%
Utilities	2.0%	2.8%
Real Estate	1.6%	2.0%

Return for Risk

FLCH vs. VWO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FLCH

FLCH Risk / Return Rank: 11
FLCH Sharpe Ratio Rank: 11
FLCH Sortino Ratio Rank: 11
FLCH Omega Ratio Rank: 11
FLCH Calmar Ratio Rank: 11
FLCH Martin Ratio Rank: 11

VWO

VWO Risk / Return Rank: 51
VWO Sharpe Ratio Rank: 49
VWO Sortino Ratio Rank: 48
VWO Omega Ratio Rank: 49
VWO Calmar Ratio Rank: 54
VWO Martin Ratio Rank: 53

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FLCH vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE China ETF (FLCH) and Vanguard FTSE Emerging Markets ETF (VWO). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FLCH	VWO	Difference
Sharpe ratio: Return per unit of total volatility	-0.00	1.20	-1.21
Sortino ratio: Return per unit of downside risk	0.14	1.72	-1.58
Omega ratio: Gain probability vs. loss probability	1.02	1.22	-0.21
Calmar ratio: Return relative to maximum drawdown	-0.00	1.89	-1.90
Martin ratio: Return relative to average drawdown	-0.00	6.16	-6.16

FLCH vs. VWO - Sharpe Ratio Comparison

The current FLCH Sharpe Ratio is -0.00, which is lower than the VWO Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of FLCH and VWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FLCH vs. VWO - Drawdown Comparison

The maximum FLCH drawdown since its inception was -62.09%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for FLCH and VWO.

Drawdown Indicators

	FLCH	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-62.09%	-67.68%	+5.59%
Max Drawdown (1Y) Largest decline over 1 year	-21.48%	-11.17%	-10.31%
Max Drawdown (3Y) Largest decline over 3 years	-25.15%	-17.37%	-7.78%
Max Drawdown (5Y) Largest decline over 5 years	-50.38%	-30.88%	-19.50%
Max Drawdown (10Y) Largest decline over 10 years	—	-36.39%	—
Current Drawdown Current decline from peak	-33.85%	-4.07%	-29.78%
Average Drawdown Average peak-to-trough decline	-30.63%	-15.73%	-14.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.23%	3.43%	+6.80%

Volatility

FLCH vs. VWO - Volatility Comparison

Franklin FTSE China ETF (FLCH) has a higher volatility of 5.89% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 5.58%. This indicates that FLCH's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLCH	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.89%	5.58%	+0.31%
Volatility (6M) Calculated over the trailing 6-month period	14.07%	15.22%	-1.15%
Volatility (1Y) Calculated over the trailing 1-year period	19.91%	17.58%	+2.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.34%	17.56%	+11.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.77%	19.17%	+8.60%

FLCH vs. VWO - Expense Ratio Comparison

FLCH has a 0.19% expense ratio, which is higher than VWO's 0.08% 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. VWO - Dividend Comparison

FLCH's dividend yield for the trailing twelve months is around 2.31%, less than VWO's 2.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLCH Franklin FTSE China ETF	2.31%	2.36%	2.87%	3.47%	2.69%	1.48%	0.91%	1.98%	1.92%	0.01%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.35%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both FLCH and VWO in my portfolio?

FLCH and VWO have a correlation of 0.73, 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 VWO?

FLCH has higher volatility (5.89%) compared to VWO (5.58%). In terms of maximum drawdown, FLCH dropped -62.09% vs VWO's -67.68%.

Which ETF is better, FLCH or VWO?

On 5-year performance, VWO leads with 6.08% vs -2.03% for FLCH. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 5.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLCH or VWO?

Over the 5-year period, VWO has performed better with a 6.08% return vs -2.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLCH or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.19% for FLCH.

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

VWO has the higher dividend yield at 2.35%, compared with 2.31% for FLCH.

What is the main difference between FLCH and VWO?

FLCH is categorized as China Equities, while VWO is Emerging Markets Equities. FLCH tracks FTSE China RIC Capped Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.19% for FLCH and 0.08% for VWO.

Which has better risk-adjusted returns?

VWO currently has the higher Sharpe Ratio (1.20 vs -0.00), 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.