LVHD vs. INCE

Last updated Jun 24, 2026

LVHD (Franklin U.S. Low Volatility High Dividend Index ETF) and INCE (Franklin Income Equity Focus ETF) are both Dividend funds from Franklin Templeton. LVHD is passively managed, while INCE is actively managed. Over the past 5 years, LVHD returned 7.44%/yr vs 10.85%/yr for INCE. A 0.68 correlation means they provide meaningful diversification when combined. LVHD charges 0.27%/yr vs 0.29%/yr for INCE.

Performance

LVHD vs. INCE - 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 Franklin Income Equity Focus ETF (INCE). 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 INCE's 12.00% 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%

INCE

• 1D: 0.22%
• 1M: -0.59%
• YTD: 12.00%
• 6M: 11.92%
• 1Y: 23.98%
• 3Y*: 16.37%
• 5Y*: 10.85%
• 10Y*: —

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

LVHD vs. INCE - 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%
INCE Franklin Income Equity Focus ETF	12.00%	15.92%	10.70%	13.87%	-8.54%	23.36%	12.33%	32.72%	-2.14%	19.66%

Correlation

The correlation between LVHD and INCE is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (All Time) Calculated using the full available price history since Sep 22, 2016	0.68

The correlation between LVHD and INCE has been stable across timeframes, ranging from 0.67 to 0.76 - a consistent structural relationship.

LVHD vs. INCE - Sectors Allocation Comparison

Sectors	LVHD	INCE
Utilities	24.8%	12.6%
Consumer Defensive	21.8%	15.5%
Real Estate	15.4%	-
Financial Services	8.2%	9.5%
Consumer Cyclical	7.4%	3.7%
Energy	7.4%	13.3%
Industrials	4.9%	16.2%
Healthcare	4.4%	7.1%
Technology	3.1%	10.5%
Communication Services	2.6%	4.2%
Basic Materials	-	7.5%

Return for Risk

LVHD vs. INCE — 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

INCE

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

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. INCE - 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 Franklin Income Equity Focus ETF (INCE). 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	INCE	Difference
Sharpe ratio: Return per unit of total volatility	1.35	2.85	-1.50
Sortino ratio: Return per unit of downside risk	1.99	4.13	-2.13
Omega ratio: Gain probability vs. loss probability	1.23	1.52	-0.29
Calmar ratio: Return relative to maximum drawdown	2.18	4.91	-2.74
Martin ratio: Return relative to average drawdown	5.41	18.21	-12.79

LVHD vs. INCE - Sharpe Ratio Comparison

The current LVHD Sharpe Ratio is 1.35, which is lower than the INCE Sharpe Ratio of 2.85. The chart below compares the historical Sharpe Ratios of LVHD and INCE, 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. INCE - Drawdown Comparison

The maximum LVHD drawdown since its inception was -37.32%, which is greater than INCE's maximum drawdown of -33.95%. Use the drawdown chart below to compare losses from any high point for LVHD and INCE.

Drawdown Indicators

	LVHD	INCE	Difference
Max Drawdown Largest peak-to-trough decline	-37.32%	-33.95%	-3.37%
Max Drawdown (1Y) Largest decline over 1 year	-6.17%	-4.90%	-1.27%
Max Drawdown (3Y) Largest decline over 3 years	-14.29%	-14.01%	-0.28%
Max Drawdown (5Y) Largest decline over 5 years	-16.75%	-18.40%	+1.65%
Max Drawdown (10Y) Largest decline over 10 years	-37.32%	—	—
Current Drawdown Current decline from peak	-1.43%	-1.77%	+0.34%
Average Drawdown Average peak-to-trough decline	-4.04%	-3.24%	-0.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.48%	1.32%	+1.16%

Volatility

LVHD vs. INCE - Volatility Comparison

Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) has a higher volatility of 4.05% compared to Franklin Income Equity Focus ETF (INCE) at 2.76%. This indicates that LVHD's price experiences larger fluctuations and is considered to be riskier than INCE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LVHD	INCE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.05%	2.76%	+1.29%
Volatility (6M) Calculated over the trailing 6-month period	7.26%	6.18%	+1.08%
Volatility (1Y) Calculated over the trailing 1-year period	9.98%	8.46%	+1.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.91%	13.28%	-0.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.53%	15.66%	-0.13%

LVHD vs. INCE - Expense Ratio Comparison

LVHD has a 0.27% expense ratio, which is lower than INCE's 0.29% expense ratio.

Dividends

LVHD vs. INCE - Dividend Comparison

LVHD's dividend yield for the trailing twelve months is around 3.29%, less than INCE's 4.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
INCE Franklin Income Equity Focus ETF	4.78%	4.71%	3.25%	1.75%	1.68%	1.41%	1.40%	1.31%	1.55%	1.44%	0.50%
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%

Frequently Asked Questions

Can I hold both LVHD and INCE in my portfolio?

LVHD and INCE have a correlation of 0.67, 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 INCE?

LVHD has higher volatility (4.05%) compared to INCE (2.76%). In terms of maximum drawdown, LVHD dropped -37.32% vs INCE's -33.95%.

Which ETF is better, LVHD or INCE?

On 5-year performance, INCE leads with 10.85% vs 7.44% for LVHD. On fees, LVHD is cheaper at 0.27% per year. On volatility, INCE has been the lower-risk option at 2.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LVHD or INCE?

Over the 5-year period, INCE has performed better with a 10.85% return vs 7.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LVHD or INCE?

LVHD is cheaper with a 0.27% expense ratio, compared with 0.29% for INCE.

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

INCE has the higher dividend yield at 4.78%, compared with 3.29% for LVHD.

What is the main difference between LVHD and INCE?

Their fees differ too: 0.27% for LVHD and 0.29% for INCE.

Which has better risk-adjusted returns?

INCE currently has the higher Sharpe Ratio (2.85 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.