FLEE vs. FLEH

Last updated Jun 24, 2026

FLEE (Franklin FTSE Europe ETF) and FLEH (Franklin FTSE Europe Hedged ETF) are both Europe Equities funds from Franklin Templeton tracking the FTSE Developed Europe RIC Capped Index. Both are passively managed. Over the past 5 years, FLEE returned 8.96%/yr vs 11.75%/yr for FLEH. Their correlation of 0.80 suggests significant overlap in exposure. Both charge a 0.09% expense ratio.

Performance

FLEE vs. FLEH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin FTSE Europe ETF (FLEE) and Franklin FTSE Europe Hedged ETF (FLEH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLEE achieves a 6.25% return, which is significantly lower than FLEH's 7.40% return.

FLEE

• 1D: -1.18%
• 1M: -0.09%
• YTD: 6.25%
• 6M: 5.83%
• 1Y: 19.11%
• 3Y*: 16.65%
• 5Y*: 8.96%
• 10Y*: —

FLEH

• 1D: -1.70%
• 1M: 1.76%
• YTD: 7.40%
• 6M: 7.90%
• 1Y: 20.48%
• 3Y*: 17.50%
• 5Y*: 11.75%
• 10Y*: —

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

FLEE vs. FLEH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLEE Franklin FTSE Europe ETF	6.25%	35.76%	2.03%	20.46%	-15.22%	16.84%	5.33%	24.41%	-14.97%	1.80%
FLEH Franklin FTSE Europe Hedged ETF	7.40%	41.56%	2.26%	16.21%	-9.14%	23.27%	0.95%	26.94%	-8.54%	-1.24%

Correlation

The correlation between FLEE and FLEH is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Nov 6, 2017	0.80

The correlation between FLEE and FLEH shifts across timeframes, from 0.80 (all time) to 0.93 (1 year), reflecting how their relationship changes across market environments.

FLEE vs. FLEH - Sectors Allocation Comparison

Sectors	FLEE	FLEH
Financial Services	23.7%	16.0%
Industrials	18.4%	15.3%
Healthcare	12.4%	14.8%
Technology	9.5%	7.5%
Consumer Defensive	8.8%	12.1%
Consumer Cyclical	6.8%	10.8%
Basic Materials	5.7%	6.8%
Energy	5.1%	5.5%
Utilities	4.8%	4.0%
Communication Services	3.4%	3.4%
Real Estate	0.9%	1.3%

Return for Risk

FLEE vs. FLEH — Risk / Return Rank

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

FLEE

FLEE Risk / Return Rank: 35
FLEE Sharpe Ratio Rank: 36
FLEE Sortino Ratio Rank: 35
FLEE Omega Ratio Rank: 33
FLEE Calmar Ratio Rank: 33
FLEE Martin Ratio Rank: 38

FLEH

FLEH Risk / Return Rank: 35
FLEH Sharpe Ratio Rank: 35
FLEH Sortino Ratio Rank: 35
FLEH Omega Ratio Rank: 34
FLEH Calmar Ratio Rank: 32
FLEH Martin Ratio Rank: 38

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.

FLEE vs. FLEH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE Europe ETF (FLEE) and Franklin FTSE Europe Hedged ETF (FLEH). 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.

	FLEE	FLEH	Difference
Sharpe ratio: Return per unit of total volatility	1.20	1.18	+0.03
Sortino ratio: Return per unit of downside risk	1.78	1.75	+0.03
Omega ratio: Gain probability vs. loss probability	1.22	1.22	0.00
Calmar ratio: Return relative to maximum drawdown	1.55	1.53	+0.02
Martin ratio: Return relative to average drawdown	5.64	5.57	+0.08

FLEE vs. FLEH - Sharpe Ratio Comparison

The current FLEE Sharpe Ratio is 1.20, which is comparable to the FLEH Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of FLEE and FLEH, 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

FLEE vs. FLEH - Drawdown Comparison

The maximum FLEE drawdown since its inception was -37.27%, which is greater than FLEH's maximum drawdown of -33.94%. Use the drawdown chart below to compare losses from any high point for FLEE and FLEH.

Drawdown Indicators

	FLEE	FLEH	Difference
Max Drawdown Largest peak-to-trough decline	-37.27%	-33.94%	-3.33%
Max Drawdown (1Y) Largest decline over 1 year	-12.37%	-13.41%	+1.04%
Max Drawdown (3Y) Largest decline over 3 years	-14.59%	-15.67%	+1.08%
Max Drawdown (5Y) Largest decline over 5 years	-31.62%	-18.67%	-12.95%
Current Drawdown Current decline from peak	-2.41%	-2.00%	-0.41%
Average Drawdown Average peak-to-trough decline	-7.07%	-4.68%	-2.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.39%	3.69%	-0.30%

Volatility

FLEE vs. FLEH - Volatility Comparison

The current volatility for Franklin FTSE Europe ETF (FLEE) is 4.94%, while Franklin FTSE Europe Hedged ETF (FLEH) has a volatility of 5.38%. This indicates that FLEE experiences smaller price fluctuations and is considered to be less risky than FLEH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLEE	FLEH	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.94%	5.38%	-0.44%
Volatility (6M) Calculated over the trailing 6-month period	13.55%	15.05%	-1.50%
Volatility (1Y) Calculated over the trailing 1-year period	15.97%	17.53%	-1.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.44%	16.47%	+0.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.95%	18.27%	+0.68%

FLEE vs. FLEH - Expense Ratio Comparison

Both FLEE and FLEH have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

FLEE vs. FLEH - Dividend Comparison

FLEE's dividend yield for the trailing twelve months is around 0.91%, less than FLEH's 1.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLEE Franklin FTSE Europe ETF	0.91%	2.76%	3.93%	2.57%	3.48%	3.61%	1.88%	3.02%	3.85%	0.02%
FLEH Franklin FTSE Europe Hedged ETF	1.08%	2.22%	3.18%	3.25%	21.45%	3.03%	1.94%	6.06%	12.17%	0.07%

Frequently Asked Questions

Can I hold both FLEE and FLEH in my portfolio?

With a correlation of 0.93, FLEE and FLEH move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FLEE or FLEH?

FLEH has higher volatility (5.38%) compared to FLEE (4.94%). In terms of maximum drawdown, FLEE dropped -37.27% vs FLEH's -33.94%.

Which ETF is better, FLEE or FLEH?

On 5-year performance, FLEH leads with 11.75% vs 8.96% for FLEE. Both ETFs have the same 0.09% expense ratio. On volatility, FLEE has been the lower-risk option at 4.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLEE or FLEH?

Over the 5-year period, FLEH has performed better with a 11.75% return vs 8.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLEE or FLEH?

FLEE and FLEH have the same expense ratio: 0.09% per year.

Which ETF pays a higher dividend yield, FLEE or FLEH?

FLEH has the higher dividend yield at 1.08%, compared with 0.91% for FLEE.

What is the main difference between FLEE and FLEH?

Both ETFs track FTSE Developed Europe RIC Capped Index.

Which has better risk-adjusted returns?

FLEE currently has the higher Sharpe Ratio (1.20 vs 1.18), 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.