FLRLX vs. SPY

Last updated Jun 4, 2026

FLRLX (Franklin LifeSmart 2045 Retirement Target Fund) and SPY (State Street SPDR S&P 500 ETF) are both funds - FLRLX is a Target Retirement Date fund managed by Franklin Templeton, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, FLRLX returned 11.07%/yr vs 15.49%/yr for SPY. Their correlation of 0.94 suggests significant overlap in exposure. FLRLX charges 0.25%/yr vs 0.09%/yr for SPY.

Performance

FLRLX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin LifeSmart 2045 Retirement Target Fund (FLRLX) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with FLRLX having a 11.24% return and SPY slightly lower at 10.91%. Over the past 10 years, FLRLX has underperformed SPY with an annualized return of 11.07%, while SPY has yielded a comparatively higher 15.49% annualized return.

FLRLX

• 1D: 0.41%
• 1M: 5.21%
• YTD: 11.24%
• 6M: 12.07%
• 1Y: 26.65%
• 3Y*: 19.19%
• 5Y*: 9.96%
• 10Y*: 11.07%

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

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

FLRLX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLRLX Franklin LifeSmart 2045 Retirement Target Fund	11.24%	20.46%	14.99%	18.90%	-17.36%	17.28%	16.02%	22.52%	-7.14%	19.04%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between FLRLX and SPY is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Jan 7, 2015	0.94

The correlation between FLRLX and SPY has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

Return for Risk

FLRLX vs. SPY — Risk / Return Rank

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

FLRLX

FLRLX Risk / Return Rank: 66
FLRLX Sharpe Ratio Rank: 69
FLRLX Sortino Ratio Rank: 65
FLRLX Omega Ratio Rank: 65
FLRLX Calmar Ratio Rank: 62
FLRLX Martin Ratio Rank: 70

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

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.

FLRLX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin LifeSmart 2045 Retirement Target Fund (FLRLX) and State Street SPDR S&P 500 ETF (SPY). 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.

	FLRLX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.43	2.38	+0.05
Sortino ratio: Return per unit of downside risk	3.37	3.24	+0.13
Omega ratio: Gain probability vs. loss probability	1.45	1.43	+0.02
Calmar ratio: Return relative to maximum drawdown	3.03	3.16	-0.14
Martin ratio: Return relative to average drawdown	13.51	14.72	-1.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLRLX vs. SPY - Sharpe Ratio Comparison

The current FLRLX Sharpe Ratio is 2.43, which is comparable to the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of FLRLX and SPY, 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

	FLRLX	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.43	2.38	+0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.55	0.82	-0.26
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	0.87	-0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.59	+0.02

Drawdowns

FLRLX vs. SPY - Drawdown Comparison

The maximum FLRLX drawdown since its inception was -36.66%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for FLRLX and SPY.

Drawdown Indicators

	FLRLX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-36.66%	-55.19%	+18.53%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-8.88%	-0.04%
Max Drawdown (3Y) Largest decline over 3 years	-14.50%	-18.76%	+4.26%
Max Drawdown (5Y) Largest decline over 5 years	-36.66%	-24.50%	-12.16%
Max Drawdown (10Y) Largest decline over 10 years	-36.66%	-33.72%	-2.94%
Current Drawdown Current decline from peak	0.00%	-0.70%	+0.70%
Average Drawdown Average peak-to-trough decline	-8.02%	-9.05%	+1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	1.91%	+0.08%

Volatility

FLRLX vs. SPY - Volatility Comparison

Franklin LifeSmart 2045 Retirement Target Fund (FLRLX) has a higher volatility of 3.19% compared to State Street SPDR S&P 500 ETF (SPY) at 2.84%. This indicates that FLRLX's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLRLX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.19%	2.84%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	8.97%	8.90%	+0.07%
Volatility (1Y) Calculated over the trailing 1-year period	11.11%	11.83%	-0.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.07%	17.05%	+1.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.38%	17.94%	-1.56%

FLRLX vs. SPY - Expense Ratio Comparison

FLRLX has a 0.25% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FLRLX vs. SPY - Dividend Comparison

FLRLX's dividend yield for the trailing twelve months is around 6.06%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLRLX Franklin LifeSmart 2045 Retirement Target Fund	6.06%	6.74%	3.17%	2.49%	4.28%	21.72%	4.14%	3.20%	6.45%	2.33%	2.44%	4.46%
SPY State Street SPDR S&P 500 ETF	0.98%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both FLRLX and SPY in my portfolio?

With a correlation of 0.95, FLRLX and SPY 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, FLRLX or SPY?

FLRLX has higher volatility (3.19%) compared to SPY (2.84%). In terms of maximum drawdown, FLRLX dropped -36.66% vs SPY's -55.19%.

Which has better risk-adjusted returns?

FLRLX currently has the higher Sharpe Ratio (2.43 vs 2.38), 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.