FLQL vs VYM

FLQLAFranklin U.S. Large Cap Multifactor Index ETF

VYMAVanguard High Dividend Yield 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.

VYM The no-frills dividend workhorse. VYM buys the higher-yielding end of the US market, roughly 600 names, for four basis points: no quality screen, no dividend-growth-streak test, just yield, at scale since 2006.

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.

VYM The Fund seeks to track a benchmark index measuring the investment return of common stocks from companies characterized by high dividend yields.

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.

• VYM Four basis points a year, against a peer-group median near 0.32%. Cheaper than cohort neighbors VONV (0.06%) and FNDX (0.25%).
• Running since 2006 and now a multi-billion-dollar fund that trades actively, so ordinary orders tend to fill at tight spreads.
• Simple mandate: track the FTSE High Dividend Yield Index of US common stocks screened on yield. No manager discretion, no options overlay, plain 1940-Act fund.vanguard.com
• Pays quarterly, and among 100-plus value and multifactor rivals it stands as one of the strongest overall packages in the group.

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.

• VYM The screen is yield, not payout growth or dividend quality, so a company can qualify simply because its share price fell.
• This is a value slice by design, tilted to established payers, so it behaves differently from a total US market fund.
• Roughly 600 holdings, but weight leans toward the largest payers, so the top of the roster does more of the work than the count suggests.

Full FLQL profile⁠

Full VYM profile⁠