FXED vs. INCM

Last updated Jun 4, 2026

FXED (Sound Enhanced Fixed Income ETF) and INCM (Franklin Income Focus ETF) are both Diversified Portfolio funds. Both are actively managed. Over the past year, FXED returned 4.11% vs 15.73% for INCM. A 0.52 correlation means they provide meaningful diversification when combined. FXED charges 2.33%/yr vs 0.38%/yr for INCM.

Performance

FXED vs. INCM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sound Enhanced Fixed Income ETF (FXED) and Franklin Income Focus ETF (INCM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXED achieves a -0.68% return, which is significantly lower than INCM's 6.45% return.

FXED

• 1D: -0.86%
• 1M: -1.64%
• YTD: -0.68%
• 6M: -0.29%
• 1Y: 4.11%
• 3Y*: 6.64%
• 5Y*: 2.33%
• 10Y*: —

INCM

• 1D: -0.48%
• 1M: 0.70%
• YTD: 6.45%
• 6M: 6.84%
• 1Y: 15.73%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FXED vs. INCM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FXED Sound Enhanced Fixed Income ETF	-0.68%	5.77%	5.18%	9.02%
INCM Franklin Income Focus ETF	6.45%	13.07%	6.80%	5.76%

Correlation

The correlation between FXED and INCM is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (All Time) Calculated using the full available price history since Jun 9, 2023	0.52

The correlation between FXED and INCM has been stable across timeframes, ranging from 0.46 to 0.52 - a consistent structural relationship.

FXED vs. INCM - Sectors Allocation Comparison

Sectors	FXED	INCM
Financial Services	61.2%	8.2%
Real Estate	38.8%	0.0%
Basic Materials	-	1.9%
Communication Services	-	1.7%
Consumer Cyclical	-	1.5%
Consumer Defensive	-	6.7%
Energy	-	3.8%
Healthcare	-	2.6%
Industrials	-	1.9%
Technology	-	2.4%
Utilities	-	4.9%

Return for Risk

FXED vs. INCM — Risk / Return Rank

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

FXED

FXED Risk / Return Rank: 18
FXED Sharpe Ratio Rank: 19
FXED Sortino Ratio Rank: 18
FXED Omega Ratio Rank: 17
FXED Calmar Ratio Rank: 19
FXED Martin Ratio Rank: 19

INCM

INCM Risk / Return Rank: 89
INCM Sharpe Ratio Rank: 88
INCM Sortino Ratio Rank: 92
INCM Omega Ratio Rank: 89
INCM Calmar Ratio Rank: 87
INCM Martin Ratio Rank: 90

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.

FXED vs. INCM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sound Enhanced Fixed Income ETF (FXED) and Franklin Income Focus ETF (INCM). 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.

	FXED	INCM	Difference
Sharpe ratio: Return per unit of total volatility	0.61	3.01	-2.40
Sortino ratio: Return per unit of downside risk	0.90	4.49	-3.59
Omega ratio: Gain probability vs. loss probability	1.11	1.57	-0.47
Calmar ratio: Return relative to maximum drawdown	0.77	4.95	-4.18
Martin ratio: Return relative to average drawdown	2.09	20.86	-18.77
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FXED vs. INCM - Sharpe Ratio Comparison

The current FXED Sharpe Ratio is 0.61, which is lower than the INCM Sharpe Ratio of 3.01. The chart below compares the historical Sharpe Ratios of FXED and INCM, 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

	FXED	INCM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.61	3.01	-2.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	1.51	-1.13

Drawdowns

FXED vs. INCM - Drawdown Comparison

The maximum FXED drawdown since its inception was -19.70%, which is greater than INCM's maximum drawdown of -7.84%. Use the drawdown chart below to compare losses from any high point for FXED and INCM.

Drawdown Indicators

	FXED	INCM	Difference
Max Drawdown Largest peak-to-trough decline	-19.70%	-7.84%	-11.86%
Max Drawdown (1Y) Largest decline over 1 year	-5.36%	-3.19%	-2.17%
Max Drawdown (3Y) Largest decline over 3 years	-8.96%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-19.70%	—	—
Current Drawdown Current decline from peak	-2.54%	-0.75%	-1.79%
Average Drawdown Average peak-to-trough decline	-4.77%	-1.09%	-3.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	0.76%	+1.21%

Volatility

FXED vs. INCM - Volatility Comparison

Sound Enhanced Fixed Income ETF (FXED) has a higher volatility of 2.12% compared to Franklin Income Focus ETF (INCM) at 1.66%. This indicates that FXED's price experiences larger fluctuations and is considered to be riskier than INCM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXED	INCM	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.12%	1.66%	+0.46%
Volatility (6M) Calculated over the trailing 6-month period	5.21%	3.82%	+1.39%
Volatility (1Y) Calculated over the trailing 1-year period	6.79%	5.25%	+1.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.75%	7.23%	+1.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.59%	7.23%	+1.36%

FXED vs. INCM - Expense Ratio Comparison

FXED has a 2.33% expense ratio, which is higher than INCM's 0.38% expense ratio.

Dividends

FXED vs. INCM - Dividend Comparison

FXED's dividend yield for the trailing twelve months is around 7.16%, more than INCM's 5.08% yield.

Position	TTM	2025	2024	2023	2022	2021
FXED Sound Enhanced Fixed Income ETF	7.16%	6.96%	6.70%	5.65%	5.94%	4.59%
INCM Franklin Income Focus ETF	5.08%	4.96%	5.06%	3.01%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FXED and INCM in my portfolio?

FXED and INCM have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXED or INCM?

FXED has higher volatility (2.12%) compared to INCM (1.66%). In terms of maximum drawdown, FXED dropped -19.70% vs INCM's -7.84%.

Which ETF is better, FXED or INCM?

On 1-year performance, INCM leads with 15.73% vs 4.11% for FXED. On fees, INCM is cheaper at 0.38% per year. On volatility, INCM has been the lower-risk option at 1.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXED or INCM?

Over the 1-year period, INCM has performed better with a 15.73% return vs 4.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXED or INCM?

INCM is cheaper with a 0.38% expense ratio, compared with 2.33% for FXED.

Which ETF pays a higher dividend yield, FXED or INCM?

FXED has the higher dividend yield at 7.16%, compared with 5.08% for INCM.

What is the main difference between FXED and INCM?

They also come from different issuers: Sound Income Strategies and Franklin Templeton. Their fees differ too: 2.33% for FXED and 0.38% for INCM.

Which has better risk-adjusted returns?

INCM currently has the higher Sharpe Ratio (3.01 vs 0.61), 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.