FLQL vs VONV

FLQLAFranklin U.S. Large Cap Multifactor Index ETF

VONVAVanguard Russell 1000 Value ETF

In short

FLQL Four factors (quality, value, momentum, low volatility) blended into one US large-cap portfolio for 0.15% a year. Franklin's LibertyQ index has run the blend since 2017, and the fund tracks it closely.

VONV The plain-vanilla value trade, done cheap: about 900 large US value stocks, full replication of the Russell 1000 Value Index, 0.06% a year. No factor cocktail, no premium price tag, and one of the strongest implementations in its factor peer group.

Stated mandate

FLQL The fund seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Large Cap Equity Index, also called the U.S. Large Cap Underlying Index.

VONV The fund seeks to track the Russell 1000 Value Index, representing large-capitalization value stocks in the United States. It uses passive indexing and full replication to remain closely aligned with that benchmark.

Why people hold it

• FLQL All four classic equity factors in one index: quality, value, momentum, low volatility. No guessing which tilt is in favor, no second fund to bolt on.
• 0.15% a year, well under the typical fee in its multifactor peer group.
• Roughly 300 US large caps, chosen by index rule rather than manager hunch, paying quarterly. Running since 2017, so there is real history to inspect.
• Tracks its LibertyQ index closely and stands in the upper tier of a crowded multifactor field.

• VONV 0.06% a year, a fraction of the typical fee among factor ETFs. On a rules-based value index there is little room for cleverness, so cost does most of the work.vanguard.com
• Full replication, not sampling: it owns the index's roughly 900 names and has stayed tightly aligned with the Russell 1000 Value benchmark since launching in 2010.
• Same Russell benchmark as pricier rivals for less: the Goldman MarketBeta version (GVUS) charges 0.12% to track the identical value index.
• A multi-billion-dollar fund that trades actively, among the easiest in its group to get in and out of, and it distributes quarterly.

Worth knowing

• FLQL Four factors in one basket dilutes each one. For a concentrated single tilt, cheaper options exist: VONV at 0.06%, IUSG at 0.04%.
• Still US large-cap equity. The factor mix changes the ride, not the asset class.
• About 300 names, all set by index rules, so the mix shifts only when the index rebalances.

• VONV One screen, one style. Value only, with no quality or momentum overlay, so the ride follows the value side of the market wherever it goes.vanguard.com
• This is the entire value bucket, not a best-ideas portfolio. About 900 holdings means results hug the large-cap value category rather than stray from it.
• Cheaper exists nearby: Vanguard's VYM charges 0.04%, but it screens for dividend yield, a different portfolio than a Russell value index.

Full FLQL profile⁠

Full VONV profile⁠