INCE vs. USMV

Last updated Jun 4, 2026

INCE (Franklin Income Equity Focus ETF) and USMV (iShares MSCI USA Minimum Volatility Factor ETF) are both exchange-traded funds - INCE is a Dividend fund actively managed by Franklin Templeton, while USMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Index. INCE is actively managed, while USMV is passively managed. Over the past 5 years, INCE returned 11.11%/yr vs 7.45%/yr for USMV. Their correlation of 0.81 suggests significant overlap in exposure. INCE charges 0.29%/yr vs 0.15%/yr for USMV.

Performance

INCE vs. USMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Income Equity Focus ETF (INCE) and iShares MSCI USA Minimum Volatility Factor ETF (USMV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, INCE achieves a 13.04% return, which is significantly higher than USMV's 2.65% return.

INCE

• 1D: -0.76%
• 1M: 2.34%
• YTD: 13.04%
• 6M: 14.26%
• 1Y: 26.92%
• 3Y*: 17.11%
• 5Y*: 11.11%
• 10Y*: —

USMV

• 1D: -0.69%
• 1M: 2.01%
• YTD: 2.65%
• 6M: 2.61%
• 1Y: 4.37%
• 3Y*: 11.79%
• 5Y*: 7.45%
• 10Y*: 9.93%

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

INCE vs. USMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
INCE Franklin Income Equity Focus ETF	13.04%	15.92%	10.70%	13.87%	-8.54%	23.36%	12.33%	32.72%	-2.14%	19.66%
USMV iShares MSCI USA Minimum Volatility Factor ETF	2.65%	7.65%	15.74%	10.33%	-9.43%	20.85%	5.64%	27.69%	1.33%	18.91%

Correlation

The correlation between INCE and USMV is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Sep 23, 2016	0.81

The correlation between INCE and USMV shifts across timeframes, from 0.65 (1 year) to 0.87 (5 years), reflecting how their relationship changes across market environments.

INCE vs. USMV - Sectors Allocation Comparison

Sectors	INCE	USMV
Financial Services	10.5%	12.4%
Industrials	9.8%	5.7%
Consumer Defensive	9.3%	10.0%
Energy	8.1%	3.6%
Technology	7.6%	30.8%
Utilities	6.4%	7.5%
Basic Materials	4.5%	2.2%
Healthcare	4.3%	12.5%
Communication Services	2.6%	5.9%
Consumer Cyclical	2.2%	5.7%
Real Estate	-	2.2%

Return for Risk

INCE vs. USMV — Risk / Return Rank

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

INCE

INCE Risk / Return Rank: 91
INCE Sharpe Ratio Rank: 91
INCE Sortino Ratio Rank: 93
INCE Omega Ratio Rank: 91
INCE Calmar Ratio Rank: 90
INCE Martin Ratio Rank: 90

USMV

USMV Risk / Return Rank: 17
USMV Sharpe Ratio Rank: 16
USMV Sortino Ratio Rank: 16
USMV Omega Ratio Rank: 15
USMV Calmar Ratio Rank: 17
USMV Martin Ratio Rank: 19

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.

INCE vs. USMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Income Equity Focus ETF (INCE) and iShares MSCI USA Minimum Volatility Factor ETF (USMV). 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.

	INCE	USMV	Difference
Sharpe ratio Return per unit of total volatility	3.26	0.52	+2.74
Sortino ratio Return per unit of downside risk	4.73	0.79	+3.95
Omega ratio Gain probability vs. loss probability	1.61	1.09	+0.51
Calmar ratio Return relative to maximum drawdown	5.52	0.68	+4.84
Martin ratio Return relative to average drawdown	20.83	2.27	+18.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

INCE vs. USMV - Sharpe Ratio Comparison

The current INCE Sharpe Ratio is 3.26, which is higher than the USMV Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of INCE and USMV, 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

	INCE	USMV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.26	0.52	+2.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	0.61	+0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.69	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.87	-0.03

Drawdowns

INCE vs. USMV - Drawdown Comparison

The maximum INCE drawdown since its inception was -33.95%, roughly equal to the maximum USMV drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for INCE and USMV.

Drawdown Indicators

	INCE	USMV	Difference
Max Drawdown Largest peak-to-trough decline	-33.95%	-33.10%	-0.85%
Max Drawdown (1Y) Largest decline over 1 year	-4.90%	-6.46%	+1.56%
Max Drawdown (3Y) Largest decline over 3 years	-14.01%	-9.36%	-4.65%
Max Drawdown (5Y) Largest decline over 5 years	-18.40%	-17.93%	-0.47%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.10%	—
Current Drawdown Current decline from peak	-0.76%	-1.18%	+0.42%
Average Drawdown Average peak-to-trough decline	-3.25%	-2.88%	-0.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.30%	1.93%	-0.63%

Volatility

INCE vs. USMV - Volatility Comparison

The current volatility for Franklin Income Equity Focus ETF (INCE) is 2.02%, while iShares MSCI USA Minimum Volatility Factor ETF (USMV) has a volatility of 2.38%. This indicates that INCE experiences smaller price fluctuations and is considered to be less risky than USMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	INCE	USMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.02%	2.38%	-0.36%
Volatility (6M) Calculated over the trailing 6-month period	5.96%	5.91%	+0.05%
Volatility (1Y) Calculated over the trailing 1-year period	8.32%	8.50%	-0.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.27%	12.35%	+0.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.69%	14.51%	+1.18%

INCE vs. USMV - Expense Ratio Comparison

INCE has a 0.29% expense ratio, which is higher than USMV's 0.15% expense ratio.

Dividends

INCE vs. USMV - Dividend Comparison

INCE's dividend yield for the trailing twelve months is around 4.73%, more than USMV's 1.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
INCE Franklin Income Equity Focus ETF	4.73%	4.71%	3.25%	1.75%	1.68%	1.41%	1.40%	1.31%	1.55%	1.44%	0.50%	0.00%
USMV iShares MSCI USA Minimum Volatility Factor ETF	1.53%	1.49%	1.67%	1.82%	1.62%	1.26%	1.81%	1.88%	2.12%	1.77%	2.22%	2.02%

Frequently Asked Questions

Can I hold both INCE and USMV in my portfolio?

INCE and USMV have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, INCE or USMV?

USMV has higher volatility (2.38%) compared to INCE (2.02%). In terms of maximum drawdown, INCE dropped -33.95% vs USMV's -33.10%.

Which ETF is better, INCE or USMV?

On 5-year performance, INCE leads with 11.11% vs 7.45% for USMV. On fees, USMV is cheaper at 0.15% per year. On volatility, INCE has been the lower-risk option at 2.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, INCE or USMV?

Over the 5-year period, INCE has performed better with a 11.11% return vs 7.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, INCE or USMV?

USMV is cheaper with a 0.15% expense ratio, compared with 0.29% for INCE.

Which ETF pays a higher dividend yield, INCE or USMV?

INCE has the higher dividend yield at 4.73%, compared with 1.53% for USMV.

What is the main difference between INCE and USMV?

INCE is categorized as Dividend, while USMV is Large Cap Blend Equities. They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.29% for INCE and 0.15% for USMV.

Which has better risk-adjusted returns?

INCE currently has the higher Sharpe Ratio (3.26 vs 0.52), 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.