LVHD vs. FDL

Last updated Jun 24, 2026

LVHD (Franklin U.S. Low Volatility High Dividend Index ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - LVHD is a Dividend fund tracking the Franklin U.S. Low Volatility High Dividend Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, LVHD returned 8.35%/yr vs 11.12%/yr for FDL. Their correlation of 0.84 suggests significant overlap in exposure. LVHD charges 0.27%/yr vs 0.43%/yr for FDL.

Performance

LVHD vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LVHD achieves a 10.55% return, which is significantly lower than FDL's 12.67% return. Over the past 10 years, LVHD has underperformed FDL with an annualized return of 8.35%, while FDL has yielded a comparatively higher 11.12% annualized return.

LVHD

• 1D: 1.56%
• 1M: 1.00%
• YTD: 10.55%
• 6M: 10.56%
• 1Y: 13.38%
• 3Y*: 10.78%
• 5Y*: 7.44%
• 10Y*: 8.35%

FDL

• 1D: 1.20%
• 1M: -2.75%
• YTD: 12.67%
• 6M: 13.02%
• 1Y: 22.39%
• 3Y*: 19.10%
• 5Y*: 13.08%
• 10Y*: 11.12%

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

LVHD vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LVHD Franklin U.S. Low Volatility High Dividend Index ETF	10.55%	7.50%	10.18%	-0.95%	-1.82%	26.90%	-1.28%	22.91%	-5.58%	14.25%
FDL First Trust Morningstar Dividend Leaders Index Fund	12.67%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between LVHD and FDL is 0.77, 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	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.84
Correlation (All Time) Calculated using the full available price history since Dec 29, 2015	0.84

The correlation between LVHD and FDL has been stable across timeframes, ranging from 0.77 to 0.84 - a consistent structural relationship.

LVHD vs. FDL - Sectors Allocation Comparison

Sectors	LVHD	FDL
Utilities	24.8%	6.5%
Consumer Defensive	21.8%	14.4%
Real Estate	15.4%	-
Financial Services	8.2%	15.2%
Consumer Cyclical	7.4%	4.7%
Energy	7.4%	25.7%
Industrials	4.9%	3.9%
Healthcare	4.4%	17.6%
Technology	3.1%	1.4%
Communication Services	2.6%	10.6%
Basic Materials	-	0.3%

Return for Risk

LVHD vs. FDL — Risk / Return Rank

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

LVHD

LVHD Risk / Return Rank: 40
LVHD Sharpe Ratio Rank: 40
LVHD Sortino Ratio Rank: 40
LVHD Omega Ratio Rank: 37
LVHD Calmar Ratio Rank: 45
LVHD Martin Ratio Rank: 37

FDL

FDL Risk / Return Rank: 69
FDL Sharpe Ratio Rank: 61
FDL Sortino Ratio Rank: 68
FDL Omega Ratio Rank: 57
FDL Calmar Ratio Rank: 90
FDL Martin Ratio Rank: 69

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.

LVHD vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.

	LVHD	FDL	Difference
Sharpe ratio: Return per unit of total volatility	1.35	1.95	-0.60
Sortino ratio: Return per unit of downside risk	1.99	2.96	-0.97
Omega ratio: Gain probability vs. loss probability	1.23	1.34	-0.11
Calmar ratio: Return relative to maximum drawdown	2.18	5.26	-3.08
Martin ratio: Return relative to average drawdown	5.41	12.40	-6.98

LVHD vs. FDL - Sharpe Ratio Comparison

The current LVHD Sharpe Ratio is 1.35, which is lower than the FDL Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of LVHD and FDL, 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

LVHD vs. FDL - Drawdown Comparison

The maximum LVHD drawdown since its inception was -37.32%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for LVHD and FDL.

Drawdown Indicators

	LVHD	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-37.32%	-65.93%	+28.61%
Max Drawdown (1Y) Largest decline over 1 year	-6.17%	-4.27%	-1.90%
Max Drawdown (3Y) Largest decline over 3 years	-14.29%	-12.24%	-2.05%
Max Drawdown (5Y) Largest decline over 5 years	-16.75%	-16.46%	-0.29%
Max Drawdown (10Y) Largest decline over 10 years	-37.32%	-41.40%	+4.08%
Current Drawdown Current decline from peak	-1.43%	-3.09%	+1.66%
Average Drawdown Average peak-to-trough decline	-4.04%	-9.64%	+5.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.48%	1.81%	+0.67%

Volatility

LVHD vs. FDL - Volatility Comparison

Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) has a higher volatility of 4.05% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 3.72%. This indicates that LVHD's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LVHD	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.05%	3.72%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	7.26%	8.09%	-0.83%
Volatility (1Y) Calculated over the trailing 1-year period	9.98%	11.54%	-1.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.91%	14.31%	-1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.53%	17.11%	-1.58%

LVHD vs. FDL - Expense Ratio Comparison

LVHD has a 0.27% expense ratio, which is lower than FDL's 0.43% expense ratio.

Dividends

LVHD vs. FDL - Dividend Comparison

LVHD's dividend yield for the trailing twelve months is around 3.29%, less than FDL's 3.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.70%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
LVHD Franklin U.S. Low Volatility High Dividend Index ETF	3.29%	3.35%	4.23%	3.55%	3.30%	2.56%	3.27%	3.30%	3.82%	3.33%	2.48%	0.00%

Frequently Asked Questions

Can I hold both LVHD and FDL in my portfolio?

LVHD and FDL have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LVHD or FDL?

LVHD has higher volatility (4.05%) compared to FDL (3.72%). In terms of maximum drawdown, LVHD dropped -37.32% vs FDL's -65.93%.

Which ETF is better, LVHD or FDL?

On 10-year performance, FDL leads with 11.12% vs 8.35% for LVHD. On fees, LVHD is cheaper at 0.27% per year. On volatility, FDL has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LVHD or FDL?

Over the 10-year period, FDL has performed better with a 11.12% return vs 8.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LVHD or FDL?

LVHD is cheaper with a 0.27% expense ratio, compared with 0.43% for FDL.

Which ETF pays a higher dividend yield, LVHD or FDL?

FDL has the higher dividend yield at 3.70%, compared with 3.29% for LVHD.

What is the main difference between LVHD and FDL?

LVHD is categorized as Dividend, while FDL is Large Cap Value Equities. LVHD tracks Franklin U.S. Low Volatility High Dividend Index, while FDL tracks Morningstar Dividend Leaders Index. They also come from different issuers: Franklin Templeton and First Trust. Their fees differ too: 0.27% for LVHD and 0.43% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (1.95 vs 1.35), 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.