FLQS vs. PBDC

Last updated Jun 25, 2026

FLQS (Franklin LibertyQ U.S. Small Cap Equity ETF) and PBDC (Putnam BDC Income ETF) are both exchange-traded funds - FLQS is a Small Cap Growth Equities fund tracking the LibertyQ U.S. Small Cap Equity Index, while PBDC is a Financials Equities fund actively managed by Franklin Templeton. FLQS is passively managed, while PBDC is actively managed. Over the past 3 years, FLQS returned 13.58%/yr vs 6.83%/yr for PBDC. A 0.60 correlation means they provide meaningful diversification when combined. FLQS charges 0.35%/yr vs 13.49%/yr for PBDC.

Performance

FLQS vs. PBDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) and Putnam BDC Income ETF (PBDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLQS achieves a 11.78% return, which is significantly higher than PBDC's -12.12% return.

FLQS

• 1D: 1.26%
• 1M: 5.59%
• YTD: 11.78%
• 6M: 9.69%
• 1Y: 18.85%
• 3Y*: 13.58%
• 5Y*: 6.07%
• 10Y*: —

PBDC

• 1D: -0.80%
• 1M: -2.09%
• YTD: -12.12%
• 6M: -10.84%
• 1Y: -12.95%
• 3Y*: 6.83%
• 5Y*: —
• 10Y*: —

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

FLQS vs. PBDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF	11.78%	5.04%	8.34%	21.28%	8.99%
PBDC Putnam BDC Income ETF	-12.12%	-1.77%	19.43%	30.52%	10.38%

Correlation

The correlation between FLQS and PBDC is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (All Time) Calculated using the full available price history since Sep 30, 2022	0.60

The correlation between FLQS and PBDC shifts across timeframes, from 0.50 (1 year) to 0.60 (all time), reflecting how their relationship changes across market environments.

Return for Risk

FLQS vs. PBDC — Risk / Return Rank

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

FLQS

FLQS Risk / Return Rank: 41
FLQS Sharpe Ratio Rank: 39
FLQS Sortino Ratio Rank: 41
FLQS Omega Ratio Rank: 37
FLQS Calmar Ratio Rank: 48
FLQS Martin Ratio Rank: 43

PBDC

PBDC Risk / Return Rank: 4
PBDC Sharpe Ratio Rank: 4
PBDC Sortino Ratio Rank: 4
PBDC Omega Ratio Rank: 4
PBDC Calmar Ratio Rank: 4
PBDC Martin Ratio Rank: 4

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.

FLQS vs. PBDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) and Putnam BDC Income ETF (PBDC). 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.

	FLQS	PBDC	Difference
Sharpe ratio: Return per unit of total volatility	1.24	-0.70	+1.94
Sortino ratio: Return per unit of downside risk	1.90	-0.89	+2.79
Omega ratio: Gain probability vs. loss probability	1.22	0.90	+0.32
Calmar ratio: Return relative to maximum drawdown	2.10	-0.65	+2.75
Martin ratio: Return relative to average drawdown	6.22	-1.11	+7.33

FLQS vs. PBDC - Sharpe Ratio Comparison

The current FLQS Sharpe Ratio is 1.24, which is higher than the PBDC Sharpe Ratio of -0.70. The chart below compares the historical Sharpe Ratios of FLQS and PBDC, 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

FLQS vs. PBDC - Drawdown Comparison

The maximum FLQS drawdown since its inception was -42.16%, which is greater than PBDC's maximum drawdown of -20.47%. Use the drawdown chart below to compare losses from any high point for FLQS and PBDC.

Drawdown Indicators

	FLQS	PBDC	Difference
Max Drawdown Largest peak-to-trough decline	-42.16%	-20.47%	-21.69%
Max Drawdown (1Y) Largest decline over 1 year	-9.00%	-20.15%	+11.15%
Max Drawdown (3Y) Largest decline over 3 years	-23.12%	-20.47%	-2.65%
Max Drawdown (5Y) Largest decline over 5 years	-28.05%	—	—
Current Drawdown Current decline from peak	0.00%	-19.39%	+19.39%
Average Drawdown Average peak-to-trough decline	-7.97%	-4.85%	-3.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	11.64%	-8.60%

Volatility

FLQS vs. PBDC - Volatility Comparison

The current volatility for Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) is 3.81%, while Putnam BDC Income ETF (PBDC) has a volatility of 5.45%. This indicates that FLQS experiences smaller price fluctuations and is considered to be less risky than PBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLQS	PBDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.81%	5.45%	-1.64%
Volatility (6M) Calculated over the trailing 6-month period	10.52%	15.43%	-4.91%
Volatility (1Y) Calculated over the trailing 1-year period	15.31%	18.65%	-3.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.23%	17.05%	+2.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.64%	17.05%	+4.59%

FLQS vs. PBDC - Expense Ratio Comparison

FLQS has a 0.35% expense ratio, which is lower than PBDC's 13.49% expense ratio.

Dividends

FLQS vs. PBDC - Dividend Comparison

FLQS's dividend yield for the trailing twelve months is around 1.29%, less than PBDC's 12.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF	1.29%	1.16%	1.29%	1.75%	1.40%	0.95%	1.20%	1.41%	1.27%	1.02%
PBDC Putnam BDC Income ETF	12.00%	10.53%	9.29%	9.86%	3.40%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLQS and PBDC in my portfolio?

FLQS and PBDC have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLQS or PBDC?

PBDC has higher volatility (5.45%) compared to FLQS (3.81%). In terms of maximum drawdown, FLQS dropped -42.16% vs PBDC's -20.47%.

Which ETF is better, FLQS or PBDC?

On 3-year performance, FLQS leads with 13.58% vs 6.83% for PBDC. On fees, FLQS is cheaper at 0.35% per year. On volatility, FLQS has been the lower-risk option at 3.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLQS or PBDC?

Over the 3-year period, FLQS has performed better with a 13.58% return vs 6.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLQS or PBDC?

FLQS is cheaper with a 0.35% expense ratio, compared with 13.49% for PBDC.

Which ETF pays a higher dividend yield, FLQS or PBDC?

PBDC has the higher dividend yield at 12.00%, compared with 1.29% for FLQS.

What is the main difference between FLQS and PBDC?

FLQS is categorized as Small Cap Growth Equities, while PBDC is Financials Equities. Their fees differ too: 0.35% for FLQS and 13.49% for PBDC.

Which has better risk-adjusted returns?

FLQS currently has the higher Sharpe Ratio (1.24 vs -0.70), 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.