FLCB vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricFLCBVYMWinner
Expense Ratio0.15%0.04%
AUM$3.0B$79.0B
Dividend Yield4.23%2.86%
Holdings473568
YTD Return-0.51%+13.24%
1Y Return+2.73%+23.76%
3Y Return (annualized)+3.97%+16.97%
5Y Return (annualized)-0.54%+12.26%
Volatility (annualized)5.7%14.6%
Max Drawdown-20.4%-58.8%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 17, 2019Nov 10, 2006

FLCB vs VYM Performance

Franklin US Core Bond ETF (FLCB) is a ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FLCB returned +2.73% while VYM returned +23.76%. Year to date, FLCB is down 0.51% versus a gain of 13.24% for VYM.

Over three years, FLCB compounded at +3.97% per year against +16.97% for VYM; over five years the annualized figures are -0.54% and +12.26% respectively. Across the full 7-year window we track, VYM has the edge at +6.96% annualized vs +0.17%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.7% for FLCB. 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 -20.4% for FLCB and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FLCB charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, FLCB currently yields 4.23% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

FLCB and VYM share 0 holdings out of 913 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, FLCB or VYM?

FLCB has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, FLCB or VYM?

Over the past year FLCB returned +2.73% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), FLCB annualized +0.17% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, FLCB or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.7% for FLCB. Worst drawdown: FLCB -20.4% vs VYM -58.8%.

Should I hold both FLCB and VYM?

FLCB and VYM have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FLCB and VYM?

FLCB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 913 unique securities.

Which pays a higher dividend, FLCB or VYM?

FLCB yields 4.23% while VYM yields 2.86%, so FLCB currently pays the higher dividend yield.

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