TEMFX vs. TFEQX

Last updated Jul 11, 2026

TEMFX (Templeton Foreign Fund Class A) and TFEQX (Templeton Institutional Fund International Equity Series) are both Foreign Large Cap Equities funds from Franklin Templeton. Over the past 10 years, TEMFX returned 7.44%/yr vs 9.25%/yr for TFEQX. Their correlation of 0.95 suggests significant overlap in exposure. TEMFX charges 1.10%/yr vs 0.83%/yr for TFEQX.

Performance

TEMFX vs. TFEQX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Templeton Foreign Fund Class A (TEMFX) and Templeton Institutional Fund International Equity Series (TFEQX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TEMFX achieves a 10.45% return, which is significantly lower than TFEQX's 14.56% return. Over the past 10 years, TEMFX has underperformed TFEQX with an annualized return of 7.44%, while TFEQX has yielded a comparatively higher 9.25% annualized return.

TEMFX

• 1D: 0.00%
• 1M: -0.19%
• 6M: 6.30%
• YTD: 10.45%
• 1Y: 19.27%
• 3Y*: 14.02%
• 5Y*: 8.86%
• 10Y*: 7.44%

TFEQX

• 1D: -0.09%
• 1M: -1.02%
• 6M: 10.77%
• YTD: 14.56%
• 1Y: 24.20%
• 3Y*: 22.09%
• 5Y*: 12.23%
• 10Y*: 9.25%

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

TEMFX vs. TFEQX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TEMFX Templeton Foreign Fund Class A	10.45%	28.45%	-2.47%	19.93%	-3.58%	5.05%	-0.49%	12.46%	-15.02%	17.08%
TFEQX Templeton Institutional Fund International Equity Series	14.56%	31.58%	9.44%	22.68%	-9.21%	5.70%	5.29%	11.56%	-17.40%	19.78%

Correlation

The correlation between TEMFX and TFEQX is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jan 2, 1991	0.95

The correlation between TEMFX and TFEQX has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

Return for Risk

TEMFX vs. TFEQX — Risk / Return Rank

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

TEMFX

TEMFX Risk / Return Rank: 30
TEMFX Sharpe Ratio Rank: 30
TEMFX Sortino Ratio Rank: 31
TEMFX Omega Ratio Rank: 31
TEMFX Calmar Ratio Rank: 29
TEMFX Martin Ratio Rank: 31

TFEQX

TFEQX Risk / Return Rank: 42
TFEQX Sharpe Ratio Rank: 40
TFEQX Sortino Ratio Rank: 42
TFEQX Omega Ratio Rank: 42
TFEQX Calmar Ratio Rank: 45
TFEQX Martin Ratio Rank: 43

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.

TEMFX vs. TFEQX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Templeton Foreign Fund Class A (TEMFX) and Templeton Institutional Fund International Equity Series (TFEQX). 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.

	TEMFX	TFEQX	Difference
Sharpe ratio: Return per unit of total volatility	1.19	1.40	-0.21
Sortino ratio: Return per unit of downside risk	1.75	2.07	-0.32
Omega ratio: Gain probability vs. loss probability	1.22	1.26	-0.04
Calmar ratio: Return relative to maximum drawdown	1.57	2.04	-0.47
Martin ratio: Return relative to average drawdown	5.44	7.23	-1.79

TEMFX vs. TFEQX - Sharpe Ratio Comparison

The current TEMFX Sharpe Ratio is 1.19, which is comparable to the TFEQX Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of TEMFX and TFEQX, 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

TEMFX vs. TFEQX - Drawdown Comparison

The maximum TEMFX drawdown since its inception was -59.62%, roughly equal to the maximum TFEQX drawdown of -57.70%. Use the drawdown chart below to compare losses from any high point for TEMFX and TFEQX.

Drawdown Indicators

	TEMFX	TFEQX	Difference
Max Drawdown Largest peak-to-trough decline	-59.62%	-57.70%	-1.92%
Max Drawdown (1Y) Largest decline over 1 year	-12.13%	-11.56%	-0.57%
Max Drawdown (3Y) Largest decline over 3 years	-17.90%	-16.94%	-0.96%
Max Drawdown (5Y) Largest decline over 5 years	-27.33%	-29.20%	+1.87%
Max Drawdown (10Y) Largest decline over 10 years	-42.56%	-42.65%	+0.09%
Current Drawdown Current decline from peak	-1.51%	-2.46%	+0.95%
Average Drawdown Average peak-to-trough decline	-9.36%	-10.49%	+1.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.50%	3.26%	+0.24%

Volatility

TEMFX vs. TFEQX - Volatility Comparison

Templeton Foreign Fund Class A (TEMFX) and Templeton Institutional Fund International Equity Series (TFEQX) have volatilities of 5.59% and 5.83%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TEMFX	TFEQX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	5.83%	-0.24%
Volatility (6M) Calculated over the trailing 6-month period	13.52%	14.47%	-0.95%
Volatility (1Y) Calculated over the trailing 1-year period	16.03%	16.87%	-0.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.20%	18.86%	-0.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.98%	17.37%	-0.39%

TEMFX vs. TFEQX - Expense Ratio Comparison

TEMFX has a 1.10% expense ratio, which is higher than TFEQX's 0.83% expense ratio.

Dividends

TEMFX vs. TFEQX - Dividend Comparison

TEMFX's dividend yield for the trailing twelve months is around 3.35%, less than TFEQX's 37.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TEMFX Templeton Foreign Fund Class A	3.35%	3.71%	2.35%	2.43%	1.19%	4.10%	1.32%	3.31%	2.65%	1.39%	1.88%	0.05%
TFEQX Templeton Institutional Fund International Equity Series	37.40%	42.84%	16.75%	14.08%	6.20%	34.04%	6.78%	6.65%	22.18%	1.60%	3.46%	2.46%

Frequently Asked Questions

Can I hold both TEMFX and TFEQX in my portfolio?

With a correlation of 0.96, TEMFX and TFEQX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, TEMFX or TFEQX?

TFEQX has higher volatility (5.83%) compared to TEMFX (5.59%). In terms of maximum drawdown, TEMFX dropped -59.62% vs TFEQX's -57.70%.

Which has better risk-adjusted returns?

TFEQX currently has the higher Sharpe Ratio (1.40 vs 1.19), 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.