SMOT vs. INCM

Last updated Aug 2, 2026

SMOT (VanEck Morningstar SMID Moat ETF) and INCM (Franklin Income Focus ETF) are both exchange-traded funds - SMOT is a Mid Cap Blend Equities fund tracking the Morningstar US Small-Mid Cap Moat Focus, while INCM is a Diversified Portfolio fund actively managed by Franklin Templeton. SMOT is passively managed, while INCM is actively managed. Over the past 3 years, SMOT returned 9.48%/yr vs 10.54%/yr for INCM. Their 0.68 correlation means they have sometimes moved together and sometimes differently. SMOT charges 0.49%/yr vs 0.38%/yr for INCM.

Performance

SMOT vs. INCM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Morningstar SMID Moat ETF (SMOT) and Franklin Income Focus ETF (INCM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMOT achieves a 9.23% return, which is significantly higher than INCM's 7.21% return.

SMOT

• 1D: -1.03%
• 1M: 0.08%
• 6M: 7.42%
• YTD: 9.23%
• 1Y: 14.58%
• 3Y*: 9.48%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 12.51%

INCM

• 1D: 0.15%
• 1M: 0.40%
• 6M: 3.59%
• YTD: 7.21%
• 1Y: 13.56%
• 3Y*: 10.54%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 10.50%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
INCM Franklin Income Focus ETF	$12.53M	$12.10M	$11.59M
SMOT VanEck Morningstar SMID Moat ETF	$1.19M	$994.04K	$961.22K

SMOT vs. INCM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SMOT VanEck Morningstar SMID Moat ETF	9.23%	6.46%	10.71%	9.02%
INCM Franklin Income Focus ETF	7.21%	13.07%	6.80%	5.76%

Correlation

The correlation between SMOT and INCM is 0.70, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.71
Correlation (3Y) Balances recent behavior with more history.	0.68
Correlation (All Time) Calculated using the full available price history since Jun 8, 2023	0.68

The correlation between SMOT and INCM has been stable across timeframes, ranging from 0.68 to 0.70 - a consistent structural relationship.

Return for Risk

SMOT vs. INCM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SMOT

SMOT Risk / Return Rank: 39
SMOT Sharpe Ratio Rank: 37
SMOT Sortino Ratio Rank: 39
SMOT Omega Ratio Rank: 34
SMOT Calmar Ratio Rank: 41
SMOT Martin Ratio Rank: 43

INCM

INCM Risk / Return Rank: 92
INCM Sharpe Ratio Rank: 92
INCM Sortino Ratio Rank: 92
INCM Omega Ratio Rank: 92
INCM Calmar Ratio Rank: 92
INCM Martin Ratio Rank: 93

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SMOT vs. INCM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Morningstar SMID Moat ETF (SMOT) and Franklin Income Focus ETF (INCM). 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.

	SMOT	INCM	Difference
Sharpe ratio: Return per unit of total volatility	0.92	2.43	-1.51
Sortino ratio: Return per unit of downside risk	1.46	3.45	-1.99
Omega ratio: Gain probability vs. loss probability	1.16	1.45	-0.29
Calmar ratio: Return relative to maximum drawdown	1.47	4.17	-2.70
Martin ratio: Return relative to average drawdown	4.79	16.77	-11.97

SMOT vs. INCM - Sharpe Ratio Comparison

The current SMOT Sharpe Ratio is 0.92, which is lower than the INCM Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of SMOT and INCM, 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

SMOT vs. INCM - Drawdown Comparison

The maximum SMOT drawdown since its inception was -23.36%, which is greater than INCM's maximum drawdown of -7.84%. Use the drawdown chart below to compare losses from any high point for SMOT and INCM.

Drawdown Indicators

	SMOT	INCM	Difference
Max Drawdown Largest peak-to-trough decline	-23.36%	-7.84%	-15.52%
Max Drawdown (1Y) Largest decline over 1 year	-8.91%	-3.19%	-5.72%
Max Drawdown (3Y) Largest decline over 3 years	-23.36%	-7.84%	-15.52%
Current Drawdown Current decline from peak	-2.32%	-0.05%	-2.27%
Average Drawdown Average peak-to-trough decline	-4.68%	-1.07%	-3.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.73%	0.79%	+1.94%

Volatility

SMOT vs. INCM - Volatility Comparison

VanEck Morningstar SMID Moat ETF (SMOT) has a higher volatility of 4.08% compared to Franklin Income Focus ETF (INCM) at 1.54%. This indicates that SMOT's price experiences larger fluctuations and is considered to be riskier than INCM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMOT	INCM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	1.54%	+2.54%
Volatility (6M) Calculated over the trailing 6-month period	10.21%	4.35%	+5.86%
Volatility (1Y) Calculated over the trailing 1-year period	14.27%	5.52%	+8.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.31%	7.22%	+11.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.31%	7.22%	+11.09%

SMOT vs. INCM - Expense Ratio Comparison

SMOT has a 0.49% expense ratio, which is higher than INCM's 0.38% expense ratio.

Dividends

SMOT vs. INCM - Dividend Comparison

SMOT's dividend yield for the trailing twelve months is around 1.26%, less than INCM's 5.21% yield.

Position	TTM	2025	2024	2023	2022
INCM Franklin Income Focus ETF	5.21%	4.96%	5.06%	3.01%	0.00%
SMOT VanEck Morningstar SMID Moat ETF	1.26%	1.37%	1.18%	0.65%	0.24%

Frequently Asked Questions

Can I hold both SMOT and INCM in my portfolio?

SMOT and INCM have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMOT or INCM?

SMOT has higher volatility (4.08%) compared to INCM (1.54%). In terms of maximum drawdown, SMOT dropped -23.36% vs INCM's -7.84%.

Which ETF is better, SMOT or INCM?

On 3-year performance, INCM leads with 10.54% vs 9.48% for SMOT. On fees, INCM is cheaper at 0.38% per year. On volatility, INCM has been the lower-risk option at 1.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMOT or INCM?

Over the 3-year period, INCM has performed better with a 10.54% return vs 9.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMOT or INCM?

INCM is cheaper with a 0.38% expense ratio, compared with 0.49% for SMOT.

Which ETF pays a higher dividend yield, SMOT or INCM?

INCM has the higher dividend yield at 5.21%, compared with 1.26% for SMOT.

What is the main difference between SMOT and INCM?

SMOT is categorized as Mid Cap Blend Equities, while INCM is Diversified Portfolio. They also come from different issuers: VanEck and Franklin Templeton. Their fees differ too: 0.49% for SMOT and 0.38% for INCM.

Which has better risk-adjusted returns?

INCM currently has the higher Sharpe Ratio (2.43 vs 0.92), 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.