Franklin US Low Volatility High Dividend Index ETF

LVHD

Market cap $590M

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.

FatCamera / iStock via Getty Images Balancing income and capital preservation is central for retirees.

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.

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is a passively managed exchange traded fund launched on 12/28/2015.

Franklin U.S. Low Volatility High Dividend Index ETF offers a differentiated, low-volatility, high-dividend strategy focused on profitable U.S. companies with durable dividends, with sector and single-stock diversification caps. The LVHD ETF underweights tech and communication sectors, favoring consumer staples and utilities, which provides defensive positioning but may miss high-growth opportunities. LVHD charges a low fee, yields 3.47%, and has outperformed peers over 1- and 5-year periods, making it attractive for income-focused investors.