FLEH vs. FLEE

Last updated Jun 23, 2026

FLEH (Franklin FTSE Europe Hedged ETF) and FLEE (Franklin FTSE Europe 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, FLEH returned 12.35%/yr vs 9.46%/yr for FLEE. Their correlation of 0.80 suggests significant overlap in exposure. Both charge a 0.09% expense ratio.

Performance

FLEH vs. FLEE - Performance Comparison

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

Returns By Period

In the year-to-date period, FLEH achieves a 9.26% return, which is significantly higher than FLEE's 7.53% return.

FLEH

• 1D: -0.30%
• 1M: 3.52%
• YTD: 9.26%
• 6M: 10.22%
• 1Y: 23.73%
• 3Y*: 18.17%
• 5Y*: 12.35%
• 10Y*: —

FLEE

• 1D: 0.15%
• 1M: 1.11%
• YTD: 7.53%
• 6M: 7.76%
• 1Y: 21.25%
• 3Y*: 17.11%
• 5Y*: 9.46%
• 10Y*: —

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

FLEH vs. FLEE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLEH Franklin FTSE Europe Hedged ETF	9.26%	41.56%	2.26%	16.21%	-9.14%	23.27%	0.95%	26.94%	-8.54%	-1.24%
FLEE Franklin FTSE Europe ETF	7.53%	35.76%	2.03%	20.46%	-15.22%	16.84%	5.33%	24.41%	-14.97%	1.80%

Correlation

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

FLEH vs. FLEE - Sectors Allocation Comparison

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

Return for Risk

FLEH vs. FLEE — Risk / Return Rank

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

FLEH

FLEH Risk / Return Rank: 39
FLEH Sharpe Ratio Rank: 40
FLEH Sortino Ratio Rank: 40
FLEH Omega Ratio Rank: 40
FLEH Calmar Ratio Rank: 36
FLEH Martin Ratio Rank: 41

FLEE

FLEE Risk / Return Rank: 38
FLEE Sharpe Ratio Rank: 38
FLEE Sortino Ratio Rank: 39
FLEE Omega Ratio Rank: 37
FLEE Calmar Ratio Rank: 35
FLEE Martin Ratio Rank: 40

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. FLEE - Risk-Adjusted Trends Comparison

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

	FLEH	FLEE	Difference
Sharpe ratio: Return per unit of total volatility	1.37	1.34	+0.03
Sortino ratio: Return per unit of downside risk	2.00	1.96	+0.05
Omega ratio: Gain probability vs. loss probability	1.25	1.24	+0.01
Calmar ratio: Return relative to maximum drawdown	1.78	1.73	+0.05
Martin ratio: Return relative to average drawdown	6.45	6.28	+0.17

FLEH vs. FLEE - Sharpe Ratio Comparison

The current FLEH Sharpe Ratio is 1.37, which is comparable to the FLEE Sharpe Ratio of 1.34. The chart below compares the historical Sharpe Ratios of FLEH and FLEE, 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

FLEH vs. FLEE - Drawdown Comparison

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

Drawdown Indicators

	FLEH	FLEE	Difference
Max Drawdown Largest peak-to-trough decline	-33.94%	-37.27%	+3.33%
Max Drawdown (1Y) Largest decline over 1 year	-13.41%	-12.37%	-1.04%
Max Drawdown (3Y) Largest decline over 3 years	-15.67%	-14.59%	-1.08%
Max Drawdown (5Y) Largest decline over 5 years	-18.67%	-31.62%	+12.95%
Current Drawdown Current decline from peak	-0.30%	-1.24%	+0.94%
Average Drawdown Average peak-to-trough decline	-4.69%	-7.07%	+2.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.69%	3.39%	+0.30%

Volatility

FLEH vs. FLEE - Volatility Comparison

Franklin FTSE Europe Hedged ETF (FLEH) and Franklin FTSE Europe ETF (FLEE) have volatilities of 5.05% and 4.81%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLEH	FLEE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.05%	4.81%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	14.96%	13.51%	+1.45%
Volatility (1Y) Calculated over the trailing 1-year period	17.47%	15.95%	+1.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.46%	17.43%	-0.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.27%	18.95%	-0.68%

FLEH vs. FLEE - Expense Ratio Comparison

Both FLEH and FLEE 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

FLEH vs. FLEE - Dividend Comparison

FLEH's dividend yield for the trailing twelve months is around 1.06%, more than FLEE's 0.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLEE Franklin FTSE Europe ETF	0.90%	2.76%	3.93%	2.57%	3.48%	3.61%	1.88%	3.02%	3.85%	0.02%
FLEH Franklin FTSE Europe Hedged ETF	1.06%	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 FLEH and FLEE in my portfolio?

With a correlation of 0.93, FLEH and FLEE 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, FLEH or FLEE?

FLEH has higher volatility (5.05%) compared to FLEE (4.81%). In terms of maximum drawdown, FLEH dropped -33.94% vs FLEE's -37.27%.

Which ETF is better, FLEH or FLEE?

On 5-year performance, FLEH leads with 12.35% vs 9.46% for FLEE. Both ETFs have the same 0.09% expense ratio. On volatility, FLEE has been the lower-risk option at 4.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLEH or FLEE?

Over the 5-year period, FLEH has performed better with a 12.35% return vs 9.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLEH or FLEE?

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

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

FLEH has the higher dividend yield at 1.06%, compared with 0.90% for FLEE.

What is the main difference between FLEH and FLEE?

Both ETFs track FTSE Developed Europe RIC Capped Index.

Which has better risk-adjusted returns?

FLEH currently has the higher Sharpe Ratio (1.37 vs 1.34), 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.