LVHI vs. VFQY

Last updated Jun 3, 2026

LVHI (Legg Mason International Low Volatility High Dividend ETF) and VFQY (Vanguard U.S. Quality Factor ETF) are both exchange-traded funds - LVHI is a Volatility Hedged Equity fund tracking the QS International Low Volatility High Dividend Hedged Index, while VFQY is a Mid Cap Blend Equities fund actively managed by Vanguard. LVHI is passively managed, while VFQY is actively managed. Over the past 5 years, LVHI returned 15.87%/yr vs 8.56%/yr for VFQY. A 0.61 correlation means they provide meaningful diversification when combined. LVHI charges 0.40%/yr vs 0.13%/yr for VFQY.

Performance

LVHI vs. VFQY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Legg Mason International Low Volatility High Dividend ETF (LVHI) and Vanguard U.S. Quality Factor ETF (VFQY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LVHI achieves a 11.90% return, which is significantly higher than VFQY's 8.01% return.

LVHI

• 1D: 0.74%
• 1M: 0.47%
• YTD: 11.90%
• 6M: 14.14%
• 1Y: 29.94%
• 3Y*: 20.98%
• 5Y*: 15.87%
• 10Y*: —

VFQY

• 1D: 0.07%
• 1M: 3.31%
• YTD: 8.01%
• 6M: 9.05%
• 1Y: 20.74%
• 3Y*: 16.22%
• 5Y*: 8.56%
• 10Y*: —

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

LVHI vs. VFQY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
LVHI Legg Mason International Low Volatility High Dividend ETF	11.90%	27.12%	14.81%	17.45%	3.84%	18.19%	-8.76%	18.35%	0.19%
VFQY Vanguard U.S. Quality Factor ETF	8.01%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-7.85%

Correlation

The correlation between LVHI and VFQY is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (All Time) Calculated using the full available price history since Feb 16, 2018	0.61

The correlation between LVHI and VFQY shifts across timeframes, from 0.48 (1 year) to 0.61 (5 years), reflecting how their relationship changes across market environments.

LVHI vs. VFQY - Sectors Allocation Comparison

Sectors	LVHI	VFQY
Financial Services	23.6%	18.9%
Energy	17.4%	2.2%
Industrials	13.4%	16.8%
Utilities	10.4%	-
Consumer Defensive	8.7%	9.2%
Healthcare	7.4%	8.9%
Basic Materials	6.1%	2.2%
Communication Services	5.8%	2.8%
Consumer Cyclical	5.3%	13.3%
Real Estate	1.9%	-
Technology	0.1%	25.8%

Return for Risk

LVHI vs. VFQY — Risk / Return Rank

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

LVHI

LVHI Risk / Return Rank: 90
LVHI Sharpe Ratio Rank: 90
LVHI Sortino Ratio Rank: 91
LVHI Omega Ratio Rank: 91
LVHI Calmar Ratio Rank: 87
LVHI Martin Ratio Rank: 90

VFQY

VFQY Risk / Return Rank: 45
VFQY Sharpe Ratio Rank: 44
VFQY Sortino Ratio Rank: 45
VFQY Omega Ratio Rank: 40
VFQY Calmar Ratio Rank: 45
VFQY Martin Ratio Rank: 49

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. VFQY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Legg Mason International Low Volatility High Dividend ETF (LVHI) and Vanguard U.S. Quality Factor ETF (VFQY). 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.

	LVHI	VFQY	Difference
Sharpe ratio Return per unit of total volatility	3.18	1.54	+1.64
Sortino ratio Return per unit of downside risk	4.36	2.24	+2.12
Omega ratio Gain probability vs. loss probability	1.60	1.27	+0.33
Calmar ratio Return relative to maximum drawdown	5.01	2.25	+2.76
Martin ratio Return relative to average drawdown	20.95	8.35	+12.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LVHI vs. VFQY - Sharpe Ratio Comparison

The current LVHI Sharpe Ratio is 3.18, which is higher than the VFQY Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of LVHI and VFQY, 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

	LVHI	VFQY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.18	1.54	+1.64
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.44	0.47	+0.97
Sharpe Ratio (All Time) Calculated using the full available price history	0.82	0.54	+0.28

Drawdowns

LVHI vs. VFQY - Drawdown Comparison

The maximum LVHI drawdown since its inception was -32.31%, smaller than the maximum VFQY drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for LVHI and VFQY.

Drawdown Indicators

	LVHI	VFQY	Difference
Max Drawdown Largest peak-to-trough decline	-32.31%	-37.41%	+5.10%
Max Drawdown (1Y) Largest decline over 1 year	-6.08%	-9.12%	+3.04%
Max Drawdown (3Y) Largest decline over 3 years	-11.99%	-20.67%	+8.68%
Max Drawdown (5Y) Largest decline over 5 years	-11.99%	-25.93%	+13.94%
Current Drawdown Current decline from peak	-1.39%	0.00%	-1.39%
Average Drawdown Average peak-to-trough decline	-3.52%	-6.69%	+3.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.45%	2.46%	-1.01%

Volatility

LVHI vs. VFQY - Volatility Comparison

Legg Mason International Low Volatility High Dividend ETF (LVHI) has a higher volatility of 3.30% compared to Vanguard U.S. Quality Factor ETF (VFQY) at 2.83%. This indicates that LVHI's price experiences larger fluctuations and is considered to be riskier than VFQY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LVHI	VFQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.30%	2.83%	+0.47%
Volatility (6M) Calculated over the trailing 6-month period	7.51%	9.47%	-1.96%
Volatility (1Y) Calculated over the trailing 1-year period	9.45%	13.51%	-4.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.06%	18.33%	-7.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.76%	20.87%	-7.11%

LVHI vs. VFQY - Expense Ratio Comparison

LVHI has a 0.40% expense ratio, which is higher than VFQY's 0.13% expense ratio.

Dividends

LVHI vs. VFQY - Dividend Comparison

LVHI's dividend yield for the trailing twelve months is around 4.49%, more than VFQY's 1.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
LVHI Legg Mason International Low Volatility High Dividend ETF	4.49%	4.92%	3.98%	8.12%	7.74%	4.13%	3.97%	6.67%	10.67%	3.38%	2.02%
VFQY Vanguard U.S. Quality Factor ETF	1.09%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LVHI and VFQY in my portfolio?

LVHI and VFQY have a correlation of 0.48, 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 VFQY?

LVHI has higher volatility (3.30%) compared to VFQY (2.83%). In terms of maximum drawdown, LVHI dropped -32.31% vs VFQY's -37.41%.

Which ETF is better, LVHI or VFQY?

On 5-year performance, LVHI leads with 15.87% vs 8.56% for VFQY. On fees, VFQY is cheaper at 0.13% per year. On volatility, VFQY has been the lower-risk option at 2.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LVHI or VFQY?

Over the 5-year period, LVHI has performed better with a 15.87% return vs 8.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LVHI or VFQY?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.40% for LVHI.

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

LVHI has the higher dividend yield at 4.49%, compared with 1.09% for VFQY.

What is the main difference between LVHI and VFQY?

LVHI is categorized as Volatility Hedged Equity, while VFQY is Mid Cap Blend Equities. They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.40% for LVHI and 0.13% for VFQY.

Which has better risk-adjusted returns?

LVHI currently has the higher Sharpe Ratio (3.18 vs 1.54), 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.