LVHD vs VYM
Franklin U.S. Low Volatility High Dividend Index ETF vs Vanguard High Dividend Yield ETF
Which is better, LVHD or VYM?
VYM has been ahead.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 26.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | LVHD | VYM |
|---|---|---|
| Expense Ratio | 0.27% | 0.04%Best |
| AUM | $600M | $78.9B |
| Dividend Yield | 3.60% | 2.37% |
| Holdings | 236 | 608 |
| YTD Return | +9.41% | +11.83%Best |
| 1Y Return | +7.95% | +15.96%Best |
| 3Y Return (annualized) | +12.58% | +18.60%Best |
| 5Y Return (annualized) | +6.86% | +11.51%Best |
| Volatility (annualized) | 13.6%Best | 14.0% |
| Max Drawdown | -37.3% | -35.7%Best |
| $10,000 over 5 years | $13,934 | $17,241Best |
| Top 10 Weight | 26.5% | 25.8%Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Dec 28, 2015 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Dec 29, 2015 to Oct 14, 2026 (10.8 years).
LVHD vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.8 years both funds cover.
LVHD vs VYM Performance
Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is an ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year LVHD returned +7.95% while VYM returned +15.96%. Year to date, LVHD is up 9.41% versus a gain of 11.83% for VYM.
Over three years, LVHD compounded at +12.58% per year against +18.60% for VYM; over five years the annualized figures are +6.86% and +11.51% respectively. Across the full 11-year window we track, VYM has the edge at +9.89% annualized vs +6.99%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.0% compared with 13.6% for LVHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -37.3% for LVHD and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
LVHD charges 0.27% per year while VYM charges 0.04%. On a $10,000 position that is $27 vs $4 annually, a gap of $23 per year that compounds over a long holding period. On income, LVHD currently yields 3.60% against 2.37% for VYM.
Holdings Overlap
82.2% of LVHD's money is in holdings VYM also owns. 19.3% of VYM's money is in holdings LVHD also owns.
Most of LVHD is already inside VYM. Owning both mostly buys the same companies twice.
77 positions in common, counted across the 115 positions we hold weights for in LVHD and 602 in VYM, against full books of 236 and 608.
What only one of them owns
Our book lists 497 positions for VYM that do not appear in our book for LVHD (78.5% of the fund), and 38 for LVHD that do not appear in VYM (17.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in LVHD | Weight in VYM | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 2.90% | 2.58% | 0.32% |
| CVXChevron Corp | 2.81% | 1.54% | 1.27% |
| KOThe Coca-Cola Company | 2.92% | 1.39% | 1.53% |
| PGProcter & Gamble | 2.58% | 1.36% | 1.22% |
| VZVerizon Communications, Inc. | 2.77% | 0.84% | 1.93% |
| HDHome Depot, Inc. | 2.28% | 1.32% | 0.96% |
| PEPPepsi Co Inc | 2.47% | 0.77% | 1.70% |
| MOAltria Group Inc. | 2.64% | 0.46% | 2.18% |
| MCDKkdonald'S Corp. | 2.35% | 0.75% | 1.60% |
| USBUS Bancorp | 2.59% | 0.39% | 2.20% |
82.2% of LVHD is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, LVHD or VYM?
LVHD has an expense ratio of 0.27% while VYM charges 0.04%. VYM is the cheaper option, by $23 a year on a $10,000 investment.
Which performed better, LVHD or VYM?
Over the past year LVHD returned +7.95% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), LVHD annualized +6.99% vs +9.89% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LVHD or VYM?
VYM has been the more volatile fund at 14.0% annualized versus 13.6% for LVHD. Worst drawdown: LVHD -37.3% vs VYM -35.7%.
Should I hold both LVHD and VYM?
LVHD and VYM have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between LVHD and VYM?
82.2% of LVHD's money is in holdings VYM also owns. 19.3% of VYM's is in holdings LVHD also owns. They hold 77 positions in common, counted across the 115 positions we hold weights for in LVHD and 602 in VYM.
Which pays a higher dividend, LVHD or VYM?
LVHD yields 3.60% while VYM yields 2.37%, so LVHD currently pays the higher dividend yield.
Is VYM better than LVHD?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 26.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.