HMEU.L vs. FRXD.L

Last updated Jul 16, 2026

HMEU.L (HSBC MSCI Europe UCITS ETF) and FRXD.L (Franklin European Quality Dividend UCITS ETF) are both Europe Equities funds - HMEU.L tracks the MSCI Europe NR EUR while FRXD.L tracks the Franklin European Quality Dividend UCITS ETF. Both are passively managed. Over the past 5 years, HMEU.L returned 10.19%/yr vs 12.15%/yr for FRXD.L. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.25% expense ratio.

Performance

HMEU.L vs. FRXD.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in HSBC MSCI Europe UCITS ETF (HMEU.L) and Franklin European Quality Dividend UCITS ETF (FRXD.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

HMEU.L is traded in GBp, while FRXD.L is traded in EUR. To make them comparable, the FRXD.L values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, HMEU.L achieves a 7.42% return, which is significantly lower than FRXD.L's 8.97% return.

HMEU.L

• 1D: -0.58%
• 1M: -0.35%
• 6M: 4.41%
• YTD: 7.42%
• 1Y: 17.80%
• 3Y*: 14.10%
• 5Y*: 10.19%
• 10Y*: 9.67%

FRXD.L

• 1D: 0.00%
• 1M: -2.54%
• 6M: 8.87%
• YTD: 8.97%
• 1Y: 17.48%
• 3Y*: 19.46%
• 5Y*: 12.15%
• 10Y*: —

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

HMEU.L vs. FRXD.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HMEU.L HSBC MSCI Europe UCITS ETF	7.42%	25.88%	3.54%	13.28%	-3.35%	17.08%	2.26%	19.75%	-9.42%	0.94%
FRXD.L Franklin European Quality Dividend UCITS ETF	8.97%	30.65%	7.63%	8.12%	5.16%	10.32%	1.12%	17.41%	-8.42%	-3.16%

Correlation

The correlation between HMEU.L and FRXD.L is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (All Time) Calculated using the full available price history since Sep 8, 2017	0.74

The correlation between HMEU.L and FRXD.L shifts across timeframes, from 0.58 (3 years) to 0.74 (all time), reflecting how their relationship changes across market environments.

Return for Risk

HMEU.L vs. FRXD.L — Risk / Return Rank

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

HMEU.L

HMEU.L Risk / Return Rank: 47
HMEU.L Sharpe Ratio Rank: 50
HMEU.L Sortino Ratio Rank: 50
HMEU.L Omega Ratio Rank: 52
HMEU.L Calmar Ratio Rank: 40
HMEU.L Martin Ratio Rank: 45

FRXD.L

FRXD.L Risk / Return Rank: 86
FRXD.L Sharpe Ratio Rank: 85
FRXD.L Sortino Ratio Rank: 86
FRXD.L Omega Ratio Rank: 82
FRXD.L Calmar Ratio Rank: 94
FRXD.L Martin Ratio Rank: 85

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.

HMEU.L vs. FRXD.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for HSBC MSCI Europe UCITS ETF (HMEU.L) and Franklin European Quality Dividend UCITS ETF (FRXD.L). 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.

	HMEU.L	FRXD.L	Difference
Sharpe ratio: Return per unit of total volatility	1.43	1.93	-0.50
Sortino ratio: Return per unit of downside risk	2.04	2.77	-0.73
Omega ratio: Gain probability vs. loss probability	1.27	1.34	-0.08
Calmar ratio: Return relative to maximum drawdown	1.70	4.77	-3.07
Martin ratio: Return relative to average drawdown	6.03	10.85	-4.83

HMEU.L vs. FRXD.L - Sharpe Ratio Comparison

The current HMEU.L Sharpe Ratio is 1.43, which is comparable to the FRXD.L Sharpe Ratio of 1.93. The chart below compares the historical Sharpe Ratios of HMEU.L and FRXD.L, 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

HMEU.L vs. FRXD.L - Drawdown Comparison

The maximum HMEU.L drawdown since its inception was -29.95%, roughly equal to the maximum FRXD.L drawdown of -29.39%. Use the drawdown chart below to compare losses from any high point for HMEU.L and FRXD.L.

Drawdown Indicators

	HMEU.L	FRXD.L	Difference
Max Drawdown Largest peak-to-trough decline	-29.95%	-29.39%	-0.56%
Max Drawdown (1Y) Largest decline over 1 year	-10.42%	-3.59%	-6.83%
Max Drawdown (3Y) Largest decline over 3 years	-12.77%	-8.29%	-4.48%
Max Drawdown (5Y) Largest decline over 5 years	-15.46%	-12.18%	-3.28%
Max Drawdown (10Y) Largest decline over 10 years	-28.42%	—	—
Current Drawdown Current decline from peak	-2.51%	-3.41%	+0.90%
Average Drawdown Average peak-to-trough decline	-6.04%	-3.52%	-2.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.95%	1.58%	+1.37%

Volatility

HMEU.L vs. FRXD.L - Volatility Comparison

HSBC MSCI Europe UCITS ETF (HMEU.L) has a higher volatility of 3.39% compared to Franklin European Quality Dividend UCITS ETF (FRXD.L) at 2.63%. This indicates that HMEU.L's price experiences larger fluctuations and is considered to be riskier than FRXD.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HMEU.L	FRXD.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.39%	2.63%	+0.76%
Volatility (6M) Calculated over the trailing 6-month period	10.67%	7.06%	+3.61%
Volatility (1Y) Calculated over the trailing 1-year period	12.44%	8.90%	+3.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.80%	11.33%	+2.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.72%	13.38%	+1.34%

HMEU.L vs. FRXD.L - Expense Ratio Comparison

Both HMEU.L and FRXD.L have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

HMEU.L vs. FRXD.L - Dividend Comparison

HMEU.L's dividend yield for the trailing twelve months is around 1.83%, less than FRXD.L's 3.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRXD.L Franklin European Quality Dividend UCITS ETF	3.98%	4.28%	4.30%	5.00%	5.20%	4.63%	3.53%	4.42%	5.53%	0.00%	0.00%	0.00%
HMEU.L HSBC MSCI Europe UCITS ETF	1.83%	2.55%	2.97%	2.80%	2.85%	2.16%	2.13%	3.10%	3.29%	2.77%	2.81%	2.62%

Frequently Asked Questions

Can I hold both HMEU.L and FRXD.L in my portfolio?

HMEU.L and FRXD.L have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HMEU.L or FRXD.L?

Both ETFs have the same 0.25% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HMEU.L or FRXD.L?

HMEU.L and FRXD.L have the same expense ratio: 0.25% per year.

What is the main difference between HMEU.L and FRXD.L?

HMEU.L tracks MSCI Europe NR EUR, while FRXD.L tracks Franklin European Quality Dividend UCITS ETF. They also come from different issuers: HSBC and Franklin.