Franklin US Low Volatility High Dividend Index ETF

LVHD

Market cap $634M

Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is a smart beta exchange traded fund launched on 12/28/2015.

Launched on December 28, 2015, the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.

Franklin U.S. Low Volatility High Dividend Index ETF is managed passively, with the focus being low-beta names with high dividend yields. The combination of the low volatility and value factors resulted in LVHD delivering a 1.75x lower annualized return than IVV over January 2016–December 2025. LVHD also underperformed USMV and DHS, delivering not only a weaker CAGR but also lower Sharpe and Sortino ratios.

The Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) made its debut on 12/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.

If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD), a passively managed exchange traded fund launched on December 28, 2015.

Franklin U.S. Low Volatility High Dividend Index ETF targets above-average yields with low volatility, focusing on utilities, consumer staples, and real estate. LVHD offers a 3.3% dividend yield, outpacing most peers, but its total returns and Sharpe ratio have lagged the broader market and top dividend ETFs. The fund's defensive sector tilt and low beta provide downside protection but limit upside in risk-on markets, resulting in underperformance versus benchmarks.

Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is a smart beta exchange traded fund launched on 12/28/2015.

Launched on December 28, 2015, the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.

Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) offers high dividends and low volatility but fails to deliver attractive risk-adjusted returns. LVHD's sector concentration in utilities, consumer staples, and real estate limits exposure to growth sectors, especially IT, hindering long-term performance. Despite lower volatility and higher yield than IWV, LVHD underperforms on total and risk-adjusted returns, making it a yield trap for investors.

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