LVHI vs. HSCZ

Last updated Jun 14, 2026

LVHI (Franklin International Low Volatility High Dividend Index ETF) and HSCZ (iShares Currency Hedged MSCI EAFE Small Cap ETF) are both exchange-traded funds - LVHI is a Volatility Hedged Equity fund tracking the Franklin International Low Volatility High Dividend Hedged Index-NR, while HSCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small-Cap 100% Hedged to USD Index. Both are passively managed. Over the past 5 years, LVHI returned 15.97%/yr vs 10.94%/yr for HSCZ. A 0.68 correlation means they provide meaningful diversification when combined. LVHI charges 0.40%/yr vs 0.43%/yr for HSCZ.

Performance

LVHI vs. HSCZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin International Low Volatility High Dividend Index ETF (LVHI) and iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LVHI achieves a 13.78% return, which is significantly higher than HSCZ's 10.99% return.

LVHI

• 1D: 0.49%
• 1M: 0.84%
• YTD: 13.78%
• 6M: 14.96%
• 1Y: 32.13%
• 3Y*: 21.52%
• 5Y*: 15.97%
• 10Y*: —

HSCZ

• 1D: 0.71%
• 1M: 0.48%
• YTD: 10.99%
• 6M: 13.18%
• 1Y: 29.11%
• 3Y*: 18.32%
• 5Y*: 10.94%
• 10Y*: 12.35%

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

LVHI vs. HSCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LVHI Franklin International Low Volatility High Dividend Index ETF	13.78%	27.12%	14.81%	17.45%	3.84%	18.19%	-8.76%	18.35%	-5.22%	12.26%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	10.99%	25.74%	12.89%	17.03%	-11.46%	17.75%	6.40%	27.89%	-13.99%	24.52%

Correlation

The correlation between LVHI and HSCZ 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	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Jul 28, 2016	0.68

The correlation between LVHI and HSCZ has been stable across timeframes, ranging from 0.67 to 0.75 - a consistent structural relationship.

LVHI vs. HSCZ - Sectors Allocation Comparison

Sectors	LVHI	HSCZ
Financial Services	24.1%	13.3%
Energy	16.6%	3.8%
Industrials	13.4%	24.4%
Utilities	10.0%	2.4%
Consumer Defensive	8.6%	3.9%
Healthcare	7.4%	4.8%
Basic Materials	6.8%	10.8%
Communication Services	5.8%	3.1%
Consumer Cyclical	5.5%	10.8%
Real Estate	1.8%	9.5%
Technology	0.1%	10.8%

Return for Risk

LVHI vs. HSCZ — Risk / Return Rank

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

LVHI

LVHI Risk / Return Rank: 94
LVHI Sharpe Ratio Rank: 95
LVHI Sortino Ratio Rank: 95
LVHI Omega Ratio Rank: 94
LVHI Calmar Ratio Rank: 92
LVHI Martin Ratio Rank: 93

HSCZ

HSCZ Risk / Return Rank: 80
HSCZ Sharpe Ratio Rank: 86
HSCZ Sortino Ratio Rank: 87
HSCZ Omega Ratio Rank: 85
HSCZ Calmar Ratio Rank: 67
HSCZ Martin Ratio Rank: 75

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.

LVHI vs. HSCZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin International Low Volatility High Dividend Index ETF (LVHI) and iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ). 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.

	LVHI	HSCZ	Difference
Sharpe ratio: Return per unit of total volatility	3.31	2.45	+0.87
Sortino ratio: Return per unit of downside risk	4.54	3.44	+1.11
Omega ratio: Gain probability vs. loss probability	1.63	1.45	+0.17
Calmar ratio: Return relative to maximum drawdown	5.23	2.95	+2.28
Martin ratio: Return relative to average drawdown	21.61	12.57	+9.04

LVHI vs. HSCZ - Sharpe Ratio Comparison

The current LVHI Sharpe Ratio is 3.31, which is higher than the HSCZ Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of LVHI and HSCZ, 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

LVHI vs. HSCZ - Drawdown Comparison

The maximum LVHI drawdown since its inception was -32.31%, smaller than the maximum HSCZ drawdown of -34.89%. Use the drawdown chart below to compare losses from any high point for LVHI and HSCZ.

Drawdown Indicators

	LVHI	HSCZ	Difference
Max Drawdown Largest peak-to-trough decline	-32.31%	-34.89%	+2.58%
Max Drawdown (1Y) Largest decline over 1 year	-6.08%	-9.61%	+3.53%
Max Drawdown (3Y) Largest decline over 3 years	-11.99%	-12.81%	+0.82%
Max Drawdown (5Y) Largest decline over 5 years	-11.99%	-20.11%	+8.12%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.89%	—
Current Drawdown Current decline from peak	0.00%	-0.60%	+0.60%
Average Drawdown Average peak-to-trough decline	-3.51%	-4.64%	+1.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.48%	2.25%	-0.77%

Volatility

LVHI vs. HSCZ - Volatility Comparison

The current volatility for Franklin International Low Volatility High Dividend Index ETF (LVHI) is 2.78%, while iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) has a volatility of 4.08%. This indicates that LVHI experiences smaller price fluctuations and is considered to be less risky than HSCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LVHI	HSCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.78%	4.08%	-1.30%
Volatility (6M) Calculated over the trailing 6-month period	7.72%	9.68%	-1.96%
Volatility (1Y) Calculated over the trailing 1-year period	9.60%	11.60%	-2.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.08%	13.52%	-2.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.75%	15.68%	-1.93%

LVHI vs. HSCZ - Expense Ratio Comparison

LVHI has a 0.40% expense ratio, which is lower than HSCZ's 0.43% expense ratio.

Dividends

LVHI vs. HSCZ - Dividend Comparison

LVHI's dividend yield for the trailing twelve months is around 4.69%, more than HSCZ's 2.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	2.93%	3.25%	3.26%	2.98%	26.91%	2.90%	1.46%	4.66%	6.15%	2.52%	2.57%	1.75%
LVHI Franklin International Low Volatility High Dividend Index ETF	4.69%	4.92%	3.98%	8.12%	7.74%	4.13%	3.97%	6.67%	10.67%	3.38%	2.02%	0.00%

Frequently Asked Questions

Can I hold both LVHI and HSCZ in my portfolio?

LVHI and HSCZ 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, LVHI or HSCZ?

HSCZ has higher volatility (4.08%) compared to LVHI (2.78%). In terms of maximum drawdown, LVHI dropped -32.31% vs HSCZ's -34.89%.

Which ETF is better, LVHI or HSCZ?

On 5-year performance, LVHI leads with 15.97% vs 10.94% for HSCZ. On fees, LVHI is cheaper at 0.40% per year. On volatility, LVHI has been the lower-risk option at 2.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LVHI or HSCZ?

Over the 5-year period, LVHI has performed better with a 15.97% return vs 10.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LVHI or HSCZ?

LVHI is cheaper with a 0.40% expense ratio, compared with 0.43% for HSCZ.

Which ETF pays a higher dividend yield, LVHI or HSCZ?

LVHI has the higher dividend yield at 4.69%, compared with 2.93% for HSCZ.

What is the main difference between LVHI and HSCZ?

LVHI is categorized as Volatility Hedged Equity, while HSCZ is Foreign Small & Mid Cap Equities. LVHI tracks Franklin International Low Volatility High Dividend Hedged Index-NR, while HSCZ tracks MSCI EAFE Small-Cap 100% Hedged to USD Index. They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.40% for LVHI and 0.43% for HSCZ.

Which has better risk-adjusted returns?

LVHI currently has the higher Sharpe Ratio (3.31 vs 2.45), 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.