LVHD vs. PBDC

Last updated Jun 24, 2026

LVHD (Franklin U.S. Low Volatility High Dividend Index ETF) and PBDC (Putnam BDC Income ETF) are both exchange-traded funds - LVHD is a Dividend fund tracking the Franklin U.S. Low Volatility High Dividend Index, while PBDC is a Financials Equities fund actively managed by Franklin Templeton. LVHD is passively managed, while PBDC is actively managed. Over the past 3 years, LVHD returned 10.78%/yr vs 7.11%/yr for PBDC. At a 0.45 correlation, their price movements are largely independent. LVHD charges 0.27%/yr vs 13.49%/yr for PBDC.

Performance

LVHD vs. PBDC - 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 Putnam BDC Income ETF (PBDC). 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 higher than PBDC's -11.42% 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%

PBDC

• 1D: 0.30%
• 1M: -1.31%
• YTD: -11.42%
• 6M: -9.25%
• 1Y: -11.33%
• 3Y*: 7.11%
• 5Y*: —
• 10Y*: —

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

LVHD vs. PBDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
LVHD Franklin U.S. Low Volatility High Dividend Index ETF	10.55%	7.50%	10.18%	-0.95%	12.02%
PBDC Putnam BDC Income ETF	-11.42%	-1.77%	19.43%	30.52%	10.38%

Correlation

The correlation between LVHD and PBDC is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (3Y) Calculated over the trailing 3-year period	0.39
Correlation (All Time) Calculated using the full available price history since Sep 30, 2022	0.45

The correlation between LVHD and PBDC shifts across timeframes, from 0.26 (1 year) to 0.45 (all time), reflecting how their relationship changes across market environments.

Return for Risk

LVHD vs. PBDC — 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

PBDC

PBDC Risk / Return Rank: 4
PBDC Sharpe Ratio Rank: 4
PBDC Sortino Ratio Rank: 4
PBDC Omega Ratio Rank: 4
PBDC Calmar Ratio Rank: 4
PBDC Martin Ratio Rank: 4

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. PBDC - 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 Putnam BDC Income ETF (PBDC). 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	PBDC	Difference
Sharpe ratio: Return per unit of total volatility	1.35	-0.61	+1.96
Sortino ratio: Return per unit of downside risk	1.99	-0.76	+2.75
Omega ratio: Gain probability vs. loss probability	1.23	0.91	+0.32
Calmar ratio: Return relative to maximum drawdown	2.18	-0.56	+2.74
Martin ratio: Return relative to average drawdown	5.41	-0.98	+6.39

LVHD vs. PBDC - Sharpe Ratio Comparison

The current LVHD Sharpe Ratio is 1.35, which is higher than the PBDC Sharpe Ratio of -0.61. The chart below compares the historical Sharpe Ratios of LVHD and PBDC, 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. PBDC - Drawdown Comparison

The maximum LVHD drawdown since its inception was -37.32%, which is greater than PBDC's maximum drawdown of -20.47%. Use the drawdown chart below to compare losses from any high point for LVHD and PBDC.

Drawdown Indicators

	LVHD	PBDC	Difference
Max Drawdown Largest peak-to-trough decline	-37.32%	-20.47%	-16.85%
Max Drawdown (1Y) Largest decline over 1 year	-6.17%	-20.15%	+13.98%
Max Drawdown (3Y) Largest decline over 3 years	-14.29%	-20.47%	+6.18%
Max Drawdown (5Y) Largest decline over 5 years	-16.75%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-37.32%	—	—
Current Drawdown Current decline from peak	-1.43%	-18.74%	+17.31%
Average Drawdown Average peak-to-trough decline	-4.04%	-4.83%	+0.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.48%	11.58%	-9.10%

Volatility

LVHD vs. PBDC - Volatility Comparison

The current volatility for Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is 4.05%, while Putnam BDC Income ETF (PBDC) has a volatility of 5.50%. This indicates that LVHD experiences smaller price fluctuations and is considered to be less risky than PBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LVHD	PBDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.05%	5.50%	-1.45%
Volatility (6M) Calculated over the trailing 6-month period	7.26%	15.43%	-8.17%
Volatility (1Y) Calculated over the trailing 1-year period	9.98%	18.66%	-8.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.91%	17.05%	-4.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.53%	17.05%	-1.52%

LVHD vs. PBDC - Expense Ratio Comparison

LVHD has a 0.27% expense ratio, which is lower than PBDC's 13.49% expense ratio.

Dividends

LVHD vs. PBDC - Dividend Comparison

LVHD's dividend yield for the trailing twelve months is around 3.29%, less than PBDC's 11.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
PBDC Putnam BDC Income ETF	11.91%	10.53%	9.29%	9.86%	3.40%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LVHD and PBDC in my portfolio?

LVHD and PBDC have a correlation of 0.26, 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 PBDC?

PBDC has higher volatility (5.50%) compared to LVHD (4.05%). In terms of maximum drawdown, LVHD dropped -37.32% vs PBDC's -20.47%.

Which ETF is better, LVHD or PBDC?

On 3-year performance, LVHD leads with 10.78% vs 7.11% for PBDC. On fees, LVHD is cheaper at 0.27% per year. On volatility, LVHD has been the lower-risk option at 4.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LVHD or PBDC?

Over the 3-year period, LVHD has performed better with a 10.78% return vs 7.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LVHD or PBDC?

LVHD is cheaper with a 0.27% expense ratio, compared with 13.49% for PBDC.

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

PBDC has the higher dividend yield at 11.91%, compared with 3.29% for LVHD.

What is the main difference between LVHD and PBDC?

LVHD is categorized as Dividend, while PBDC is Financials Equities. Their fees differ too: 0.27% for LVHD and 13.49% for PBDC.

Which has better risk-adjusted returns?

LVHD currently has the higher Sharpe Ratio (1.35 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.