FLHY vs. FDHY

Last updated Jun 3, 2026

FLHY (Franklin Liberty High Yield Corporate ETF) and FDHY (Fidelity High Yield Factor ETF) are both High Yield Bonds funds. Both are actively managed. Over the past 5 years, FLHY returned 4.80%/yr vs 4.08%/yr for FDHY. Their correlation of 0.80 suggests significant overlap in exposure. FLHY charges 0.40%/yr vs 0.45%/yr for FDHY.

Performance

FLHY vs. FDHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Liberty High Yield Corporate ETF (FLHY) and Fidelity High Yield Factor ETF (FDHY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLHY achieves a 1.94% return, which is significantly lower than FDHY's 2.41% return.

FLHY

• 1D: 0.04%
• 1M: 0.34%
• YTD: 1.94%
• 6M: 2.66%
• 1Y: 8.18%
• 3Y*: 9.33%
• 5Y*: 4.80%
• 10Y*: —

FDHY

• 1D: 0.17%
• 1M: 0.41%
• YTD: 2.41%
• 6M: 3.21%
• 1Y: 9.04%
• 3Y*: 8.75%
• 5Y*: 4.08%
• 10Y*: —

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

FLHY vs. FDHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FLHY Franklin Liberty High Yield Corporate ETF	1.94%	9.26%	8.70%	13.40%	-10.45%	4.27%	7.77%	16.39%	-1.31%
FDHY Fidelity High Yield Factor ETF	2.41%	9.24%	7.53%	11.14%	-11.30%	4.33%	10.71%	16.87%	-2.14%

Correlation

The correlation between FLHY and FDHY is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jun 15, 2018	0.80

The correlation between FLHY and FDHY has been stable across timeframes, ranging from 0.78 to 0.84 - a consistent structural relationship.

FLHY vs. FDHY - Sectors Allocation Comparison

Sectors	FLHY	FDHY
Energy	1.9%	100.0%
Industrials	1.6%	-
Technology	1.6%	-
Healthcare	0.9%	-
Basic Materials	0.7%	-
Utilities	0.6%	-
Consumer Cyclical	0.6%	-
Financial Services	0.5%	-
Communication Services	0.4%	-
Real Estate	0.3%	-
Consumer Defensive	0.2%	-

Return for Risk

FLHY vs. FDHY — Risk / Return Rank

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

FLHY

FLHY Risk / Return Rank: 70
FLHY Sharpe Ratio Rank: 64
FLHY Sortino Ratio Rank: 71
FLHY Omega Ratio Rank: 70
FLHY Calmar Ratio Rank: 67
FLHY Martin Ratio Rank: 80

FDHY

FDHY Risk / Return Rank: 81
FDHY Sharpe Ratio Rank: 77
FDHY Sortino Ratio Rank: 86
FDHY Omega Ratio Rank: 85
FDHY Calmar Ratio Rank: 76
FDHY Martin Ratio Rank: 82

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.

FLHY vs. FDHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty High Yield Corporate ETF (FLHY) and Fidelity High Yield Factor ETF (FDHY). 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.

	FLHY	FDHY	Difference
Sharpe ratio Return per unit of total volatility	2.15	2.55	-0.40
Sortino ratio Return per unit of downside risk	3.28	3.92	-0.64
Omega ratio Gain probability vs. loss probability	1.42	1.53	-0.10
Calmar ratio Return relative to maximum drawdown	3.38	3.91	-0.53
Martin ratio Return relative to average drawdown	15.92	16.71	-0.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLHY vs. FDHY - Sharpe Ratio Comparison

The current FLHY Sharpe Ratio is 2.15, which is comparable to the FDHY Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of FLHY and FDHY, 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

	FLHY	FDHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.15	2.55	-0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.70	0.57	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.73	0.72	+0.01

Drawdowns

FLHY vs. FDHY - Drawdown Comparison

The maximum FLHY drawdown since its inception was -22.58%, which is greater than FDHY's maximum drawdown of -20.01%. Use the drawdown chart below to compare losses from any high point for FLHY and FDHY.

Drawdown Indicators

	FLHY	FDHY	Difference
Max Drawdown Largest peak-to-trough decline	-22.58%	-20.01%	-2.57%
Max Drawdown (1Y) Largest decline over 1 year	-2.43%	-2.12%	-0.31%
Max Drawdown (3Y) Largest decline over 3 years	-4.49%	-5.26%	+0.77%
Max Drawdown (5Y) Largest decline over 5 years	-15.19%	-16.38%	+1.19%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.54%	-2.88%	+0.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.52%	0.50%	+0.02%

Volatility

FLHY vs. FDHY - Volatility Comparison

Franklin Liberty High Yield Corporate ETF (FLHY) and Fidelity High Yield Factor ETF (FDHY) have volatilities of 1.25% and 1.26%, 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

	FLHY	FDHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.25%	1.26%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	2.97%	2.75%	+0.22%
Volatility (1Y) Calculated over the trailing 1-year period	3.83%	3.63%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.94%	7.13%	-0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.12%	8.05%	+0.07%

FLHY vs. FDHY - Expense Ratio Comparison

FLHY has a 0.40% expense ratio, which is lower than FDHY's 0.45% expense ratio.

Dividends

FLHY vs. FDHY - Dividend Comparison

FLHY's dividend yield for the trailing twelve months is around 6.46%, which matches FDHY's 6.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
FDHY Fidelity High Yield Factor ETF	6.51%	6.56%	6.58%	6.26%	5.34%	6.09%	5.78%	4.94%	2.55%
FLHY Franklin Liberty High Yield Corporate ETF	6.46%	6.53%	6.51%	6.26%	6.54%	5.76%	5.47%	5.61%	4.27%

Frequently Asked Questions

Can I hold both FLHY and FDHY in my portfolio?

FLHY and FDHY have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLHY or FDHY?

FDHY has higher volatility (1.26%) compared to FLHY (1.25%). In terms of maximum drawdown, FLHY dropped -22.58% vs FDHY's -20.01%.

Which ETF is better, FLHY or FDHY?

On 5-year performance, FLHY leads with 4.80% vs 4.08% for FDHY. On fees, FLHY is cheaper at 0.40% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLHY or FDHY?

Over the 5-year period, FLHY has performed better with a 4.80% return vs 4.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLHY or FDHY?

FLHY is cheaper with a 0.40% expense ratio, compared with 0.45% for FDHY.

Which ETF pays a higher dividend yield, FLHY or FDHY?

FDHY has the higher dividend yield at 6.51%, compared with 6.46% for FLHY.

What is the main difference between FLHY and FDHY?

They also come from different issuers: Franklin Templeton and Fidelity. Their fees differ too: 0.40% for FLHY and 0.45% for FDHY.

Which has better risk-adjusted returns?

FDHY currently has the higher Sharpe Ratio (2.55 vs 2.15), 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.