FLEH vs. DFE

Last updated Jun 4, 2026

FLEH (Franklin FTSE Europe Hedged ETF) and DFE (WisdomTree Europe SmallCap Dividend Fund) are both Europe Equities funds - FLEH tracks the FTSE Developed Europe RIC Capped Index while DFE tracks the WisdomTree Europe SmallCap Dividend Index. Both are passively managed. Over the past 5 years, FLEH returned 11.81%/yr vs 4.05%/yr for DFE. A 0.72 correlation means they provide meaningful diversification when combined. FLEH charges 0.09%/yr vs 0.58%/yr for DFE.

Performance

FLEH vs. DFE - Performance Comparison

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

Returns By Period

In the year-to-date period, FLEH achieves a 6.27% return, which is significantly higher than DFE's 5.19% return.

FLEH

• 1D: -0.88%
• 1M: 4.88%
• YTD: 6.27%
• 6M: 9.17%
• 1Y: 18.35%
• 3Y*: 16.47%
• 5Y*: 11.81%
• 10Y*: —

DFE

• 1D: -1.08%
• 1M: 1.12%
• YTD: 5.19%
• 6M: 8.60%
• 1Y: 14.01%
• 3Y*: 14.44%
• 5Y*: 4.05%
• 10Y*: 6.78%

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

FLEH vs. DFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLEH Franklin FTSE Europe Hedged ETF	6.27%	41.56%	2.26%	16.21%	-9.14%	23.27%	0.95%	26.94%	-8.54%	-1.24%
DFE WisdomTree Europe SmallCap Dividend Fund	5.19%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	2.18%

Correlation

The correlation between FLEH and DFE is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (All Time) Calculated using the full available price history since Nov 7, 2017	0.72

The correlation between FLEH and DFE shifts across timeframes, from 0.72 (all time) to 0.84 (1 year), reflecting how their relationship changes across market environments.

FLEH vs. DFE - Sectors Allocation Comparison

Sectors	FLEH	DFE
Financial Services	16.0%	9.7%
Industrials	15.3%	25.3%
Healthcare	14.8%	3.5%
Consumer Defensive	12.1%	4.3%
Consumer Cyclical	10.8%	9.5%
Technology	7.5%	7.1%
Basic Materials	6.8%	7.5%
Energy	5.5%	6.9%
Utilities	4.0%	3.5%
Communication Services	3.4%	5.5%
Real Estate	1.3%	6.3%

Return for Risk

FLEH vs. DFE — Risk / Return Rank

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

FLEH

FLEH Risk / Return Rank: 30
FLEH Sharpe Ratio Rank: 30
FLEH Sortino Ratio Rank: 30
FLEH Omega Ratio Rank: 30
FLEH Calmar Ratio Rank: 28
FLEH Martin Ratio Rank: 33

DFE

DFE Risk / Return Rank: 27
DFE Sharpe Ratio Rank: 27
DFE Sortino Ratio Rank: 26
DFE Omega Ratio Rank: 26
DFE Calmar Ratio Rank: 26
DFE Martin Ratio Rank: 29

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.

FLEH vs. DFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE Europe Hedged ETF (FLEH) and WisdomTree Europe SmallCap Dividend Fund (DFE). 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.

	FLEH	DFE	Difference
Sharpe ratio: Return per unit of total volatility	1.08	0.96	+0.12
Sortino ratio: Return per unit of downside risk	1.62	1.43	+0.19
Omega ratio: Gain probability vs. loss probability	1.20	1.18	+0.03
Calmar ratio: Return relative to maximum drawdown	1.37	1.23	+0.14
Martin ratio: Return relative to average drawdown	4.99	4.24	+0.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLEH vs. DFE - Sharpe Ratio Comparison

The current FLEH Sharpe Ratio is 1.08, which is comparable to the DFE Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of FLEH and DFE, 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

	FLEH	DFE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.08	0.96	+0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.21	+0.51
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.34	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.29	+0.28

Drawdowns

FLEH vs. DFE - Drawdown Comparison

The maximum FLEH drawdown since its inception was -33.94%, smaller than the maximum DFE drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for FLEH and DFE.

Drawdown Indicators

	FLEH	DFE	Difference
Max Drawdown Largest peak-to-trough decline	-33.94%	-69.38%	+35.44%
Max Drawdown (1Y) Largest decline over 1 year	-13.41%	-11.41%	-2.00%
Max Drawdown (3Y) Largest decline over 3 years	-15.67%	-16.41%	+0.74%
Max Drawdown (5Y) Largest decline over 5 years	-18.67%	-40.34%	+21.67%
Max Drawdown (10Y) Largest decline over 10 years	—	-49.66%	—
Current Drawdown Current decline from peak	-1.50%	-3.11%	+1.61%
Average Drawdown Average peak-to-trough decline	-4.71%	-17.73%	+13.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.68%	3.31%	+0.37%

Volatility

FLEH vs. DFE - Volatility Comparison

Franklin FTSE Europe Hedged ETF (FLEH) has a higher volatility of 6.75% compared to WisdomTree Europe SmallCap Dividend Fund (DFE) at 5.06%. This indicates that FLEH's price experiences larger fluctuations and is considered to be riskier than DFE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLEH	DFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.75%	5.06%	+1.69%
Volatility (6M) Calculated over the trailing 6-month period	14.38%	11.98%	+2.40%
Volatility (1Y) Calculated over the trailing 1-year period	17.02%	14.64%	+2.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.34%	19.01%	-2.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.25%	19.77%	-1.52%

FLEH vs. DFE - Expense Ratio Comparison

FLEH has a 0.09% expense ratio, which is lower than DFE's 0.58% expense ratio.

Dividends

FLEH vs. DFE - Dividend Comparison

FLEH's dividend yield for the trailing twelve months is around 2.09%, less than DFE's 3.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFE WisdomTree Europe SmallCap Dividend Fund	3.89%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%
FLEH Franklin FTSE Europe Hedged ETF	2.09%	2.22%	3.18%	3.25%	21.45%	3.03%	1.94%	6.06%	12.17%	0.07%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLEH and DFE in my portfolio?

FLEH and DFE have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLEH or DFE?

FLEH has higher volatility (6.75%) compared to DFE (5.06%). In terms of maximum drawdown, FLEH dropped -33.94% vs DFE's -69.38%.

Which ETF is better, FLEH or DFE?

On 5-year performance, FLEH leads with 11.81% vs 4.05% for DFE. On fees, FLEH is cheaper at 0.09% per year. On volatility, DFE has been the lower-risk option at 5.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLEH or DFE?

Over the 5-year period, FLEH has performed better with a 11.81% return vs 4.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLEH or DFE?

FLEH is cheaper with a 0.09% expense ratio, compared with 0.58% for DFE.

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

DFE has the higher dividend yield at 3.89%, compared with 2.09% for FLEH.

What is the main difference between FLEH and DFE?

FLEH tracks FTSE Developed Europe RIC Capped Index, while DFE tracks WisdomTree Europe SmallCap Dividend Index. They also come from different issuers: Franklin Templeton and WisdomTree. Their fees differ too: 0.09% for FLEH and 0.58% for DFE.

Which has better risk-adjusted returns?

FLEH currently has the higher Sharpe Ratio (1.08 vs 0.96), 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.