FLCO vs. LVHI

Last updated Jun 6, 2026

FLCO (Franklin Liberty Investment Grade Corporate ETF) and LVHI (Franklin International Low Volatility High Dividend Index ETF) are both exchange-traded funds - FLCO is a Corporate Bonds fund actively managed by Franklin Templeton, while LVHI is a Volatility Hedged Equity fund tracking the Franklin International Low Volatility High Dividend Hedged Index-NR. FLCO is actively managed, while LVHI is passively managed. Over the past 5 years, FLCO returned 0.11%/yr vs 15.66%/yr for LVHI. At a 0.11 correlation, their price movements are largely independent. FLCO charges 0.35%/yr vs 0.40%/yr for LVHI.

Performance

FLCO vs. LVHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Liberty Investment Grade Corporate ETF (FLCO) and Franklin International Low Volatility High Dividend Index ETF (LVHI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLCO achieves a 0.10% return, which is significantly lower than LVHI's 11.03% return.

FLCO

• 1D: -0.49%
• 1M: -0.43%
• YTD: 0.10%
• 6M: 0.29%
• 1Y: 4.90%
• 3Y*: 4.88%
• 5Y*: 0.11%
• 10Y*: —

LVHI

• 1D: -0.94%
• 1M: -1.04%
• YTD: 11.03%
• 6M: 13.12%
• 1Y: 29.65%
• 3Y*: 20.66%
• 5Y*: 15.66%
• 10Y*: —

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

FLCO vs. LVHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLCO Franklin Liberty Investment Grade Corporate ETF	0.10%	7.53%	1.93%	7.94%	-16.08%	-2.06%	10.01%	14.82%	-3.06%	5.98%
LVHI Franklin International Low Volatility High Dividend Index ETF	11.03%	27.12%	14.81%	17.45%	3.84%	18.19%	-8.76%	18.35%	-5.22%	12.26%

Correlation

The correlation between FLCO and LVHI is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.22
Correlation (All Time) Calculated using the full available price history since Oct 6, 2016	0.11

The correlation between FLCO and LVHI shifts across timeframes, from 0.11 (all time) to 0.28 (3 years), reflecting how their relationship changes across market environments.

FLCO vs. LVHI - Sectors Allocation Comparison

Sectors	FLCO	LVHI
Financial Services	12.6%	23.6%
Healthcare	2.8%	7.4%
Communication Services	2.4%	5.8%
Industrials	2.1%	13.4%
Energy	1.7%	17.4%
Technology	1.1%	0.1%
Basic Materials	0.5%	6.1%
Consumer Defensive	0.3%	8.7%
Consumer Cyclical	0.0%	5.3%
Real Estate	-	1.9%
Utilities	-	10.4%

Return for Risk

FLCO vs. LVHI — Risk / Return Rank

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

FLCO

FLCO Risk / Return Rank: 34
FLCO Sharpe Ratio Rank: 33
FLCO Sortino Ratio Rank: 33
FLCO Omega Ratio Rank: 31
FLCO Calmar Ratio Rank: 38
FLCO Martin Ratio Rank: 37

LVHI

LVHI Risk / Return Rank: 90
LVHI Sharpe Ratio Rank: 91
LVHI Sortino Ratio Rank: 92
LVHI Omega Ratio Rank: 91
LVHI Calmar Ratio Rank: 87
LVHI Martin Ratio Rank: 90

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.

FLCO vs. LVHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Investment Grade Corporate ETF (FLCO) and Franklin International Low Volatility High Dividend Index ETF (LVHI). 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.

	FLCO	LVHI	Difference
Sharpe ratio: Return per unit of total volatility	1.12	3.14	-2.02
Sortino ratio: Return per unit of downside risk	1.64	4.29	-2.65
Omega ratio: Gain probability vs. loss probability	1.19	1.59	-0.39
Calmar ratio: Return relative to maximum drawdown	1.78	4.90	-3.12
Martin ratio: Return relative to average drawdown	5.34	20.31	-14.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLCO vs. LVHI - Sharpe Ratio Comparison

The current FLCO Sharpe Ratio is 1.12, which is lower than the LVHI Sharpe Ratio of 3.14. The chart below compares the historical Sharpe Ratios of FLCO and LVHI, 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

	FLCO	LVHI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.12	3.14	-2.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.02	1.42	-1.41
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.81	-0.50

Drawdowns

FLCO vs. LVHI - Drawdown Comparison

The maximum FLCO drawdown since its inception was -22.71%, smaller than the maximum LVHI drawdown of -32.31%. Use the drawdown chart below to compare losses from any high point for FLCO and LVHI.

Drawdown Indicators

	FLCO	LVHI	Difference
Max Drawdown Largest peak-to-trough decline	-22.71%	-32.31%	+9.60%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-6.08%	+3.32%
Max Drawdown (3Y) Largest decline over 3 years	-6.59%	-11.99%	+5.40%
Max Drawdown (5Y) Largest decline over 5 years	-22.48%	-11.99%	-10.49%
Current Drawdown Current decline from peak	-2.66%	-2.16%	-0.50%
Average Drawdown Average peak-to-trough decline	-5.88%	-3.52%	-2.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	1.46%	-0.54%

Volatility

FLCO vs. LVHI - Volatility Comparison

The current volatility for Franklin Liberty Investment Grade Corporate ETF (FLCO) is 1.45%, while Franklin International Low Volatility High Dividend Index ETF (LVHI) has a volatility of 2.91%. This indicates that FLCO experiences smaller price fluctuations and is considered to be less risky than LVHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLCO	LVHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.45%	2.91%	-1.46%
Volatility (6M) Calculated over the trailing 6-month period	3.28%	7.57%	-4.29%
Volatility (1Y) Calculated over the trailing 1-year period	4.41%	9.49%	-5.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.14%	11.06%	-3.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.83%	13.76%	-6.93%

FLCO vs. LVHI - Expense Ratio Comparison

FLCO has a 0.35% expense ratio, which is lower than LVHI's 0.40% expense ratio.

Dividends

FLCO vs. LVHI - Dividend Comparison

FLCO's dividend yield for the trailing twelve months is around 4.67%, less than LVHI's 4.80% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
FLCO Franklin Liberty Investment Grade Corporate ETF	4.67%	4.60%	4.63%	3.83%	3.85%	2.85%	3.99%	3.39%	3.86%	3.33%	0.51%
LVHI Franklin International Low Volatility High Dividend Index ETF	4.80%	4.92%	3.98%	8.12%	7.74%	4.13%	3.97%	6.67%	10.67%	3.38%	2.02%

Frequently Asked Questions

Can I hold both FLCO and LVHI in my portfolio?

FLCO and LVHI have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLCO or LVHI?

LVHI has higher volatility (2.91%) compared to FLCO (1.45%). In terms of maximum drawdown, FLCO dropped -22.71% vs LVHI's -32.31%.

Which ETF is better, FLCO or LVHI?

On 5-year performance, LVHI leads with 15.66% vs 0.11% for FLCO. On fees, FLCO is cheaper at 0.35% per year. On volatility, FLCO has been the lower-risk option at 1.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLCO or LVHI?

Over the 5-year period, LVHI has performed better with a 15.66% return vs 0.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLCO or LVHI?

FLCO is cheaper with a 0.35% expense ratio, compared with 0.40% for LVHI.

Which ETF pays a higher dividend yield, FLCO or LVHI?

LVHI has the higher dividend yield at 4.80%, compared with 4.67% for FLCO.

What is the main difference between FLCO and LVHI?

FLCO is categorized as Corporate Bonds, while LVHI is Volatility Hedged Equity. Their fees differ too: 0.35% for FLCO and 0.40% for LVHI.

Which has better risk-adjusted returns?

LVHI currently has the higher Sharpe Ratio (3.14 vs 1.12), 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.