How do the expense ratios of LVHD and LVHI compare, and why does this matter for long-term investment performance?

LVHD has a 0.27% expense ratio, whereas LVHI has a 0.40% expense ratio. This 0.13 percentage point difference may seem minor annually but can compound over decades, reducing the potential net returns for LVHI investors. Lower expenses generally help keep more money in the fund, potentially enhancing the final balance. It is essential for investors to understand how fee structures impact long-term holdings, even if other fund attributes vary significantly between the two products. The lower expense ratio of LVHD may be advantageous for cost-conscious investors.

What are the differences in fund size between LVHD and LVHI, and how does this impact investor accessibility and liquidity?

LVHD has net assets of $609 million, while LVHI is significantly larger with $6.0 billion in net assets. Larger funds often benefit from economies of scale and better liquidity, resulting in tighter bid-ask spreads for traders. However, LVHD’s smaller size might mean it is less commonly traded or accessible in terms of liquidity. Investors should consider these dynamics, as the size of a fund does not necessarily reflect its performance but can influence the ease of trading and cost impact.

What does the difference in dividend yields between LVHD and LVHI suggest about their income generation potential?

LVHD offers a dividend yield of 3.49%, while LVHI presents a higher yield at 4.61%. This 1.12 percentage point difference indicates that LVHI may be more attractive for income-focused investors. However, higher yields do not always equate to better investment quality; sustainability of these distributions can vary. Investors should examine the underlying holdings and strategies of both ETFs, as yield alone should not dictate investment decisions without considering the broader context of risk and return characteristics.

How do LVHD and LVHI differ in their investment focus and top holdings, and why is this important for portfolio diversification?

LVHD focuses on large-cap names such as JNJ and KO, suggesting a preference for established firms, with a net asset value of $609 million. Conversely, LVHI has a higher yield but lacks published top holdings, making it difficult to assess its exact composition. The absence of sector weights for both funds creates uncertainty about concentration risks. Investors seeking diversification must understand that different fund compositions may not align, and transparency gaps might affect how well each fits into a diversified portfolio strategy.

What implications do LVHD's top holdings have for an investor looking for low-volatility dividends?

LVHD's top holdings include major names like JNJ, KO, and VZ, indicating a strategy targeting established, potentially lower-risk dividend-paying stocks. These companies are often viewed as stable due to their market presence and consistent performance. This selection aligns with LVHD’s aim for low volatility while maintaining a 3.49% yield. For investors, this means a focus on companies with robust fundamentals. However, with no published sector weights, the broader risk context remains somewhat opaque, necessitating a cautious approach.

How might LVHI's higher expense ratio and yield profile influence the decision-making process for income-focused investors?

With a higher dividend yield of 4.61% compared to LVHD’s 3.49%, LVHI may appeal more to income-focused investors. However, its higher expense ratio of 0.40% versus LVHD’s 0.27% could erode returns over time, requiring careful consideration. The trade-off between yield and costs is crucial: higher fees mean lower net income unless offset by superior performance. Additionally, LVHI’s larger asset base may enhance liquidity. Investors must weigh these factors together when evaluating potential income from this ETF.

What is the significance of the lack of transparency regarding LVHI's holdings and sector weights for its potential investors?

LVHI does not publish its top-10 holdings or sector weights, which can hinder investors' ability to fully evaluate its risk exposure and concentration. Without clear visibility into how its assets are allocated, understanding potential overlaps with other investments is challenging. This lack of information may also affect trust in the fund's management. Investors must be cautious; while LVHI's yield is attractive, the absence of detailed holdings information means greater uncertainty regarding its performance drivers and stability.

How do the differences in inception dates and track records between LVHD and LVHI affect investor confidence and strategy suitability?

LVHD was established on December 29, 2015, while LVHI was inceptioned on July 27, 2016. Although both are relatively similar in terms of age, LVHI may offer a marginally longer track record for its specific strategy, potentially instilling more confidence in investors seeking established performance data. However, the longer history of one fund does not guarantee better results. Investors must consider both historical performance and the strategic fit with their own risk tolerance and investment horizon when making decisions.

What practical considerations should be made for investors choosing between LVHD and LVHI in terms of accessibility and liquidity?

Considering LVHD's lower net assets of $609 million compared to LVHI's $6.0 billion, investors may find that LVHD has less liquidity, potentially resulting in wider bid-ask spreads. In contrast, LVHI's size suggests it is more liquid and likely more accessible for large transactions. Investors should evaluate their trading preferences and the importance of liquidity when choosing between the two. Practical aspects like fund accessibility, cost of transactions, and overall strategy alignment play critical roles in making informed decisions.

LVHD vs LVHI

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare LVHD (Franklin U.S. Low Volatility High Dividend Index ETF) and LVHI (Legg Mason LVHI ETF). This page reviews their fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

LVHD

Metric

LVHI

0.27%

Expense Ratio

0.40%

3.49%

Dividend Yield

4.61%

$609.35M

Net Assets

$5.95B

117

Holdings

219

Dec 29, 2015

Inception Date

Jul 27, 2016

–

Index Tracked

–

Mid-Cap Value

Fund Category

Foreign Large Value

LVHD costs about $13.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

LVHD

Pros

LVHD’s 0.27% expense ratio is lower than LVHI’s, which may reduce long-term costs.
Top holdings include large-cap names like JNJ and KO, suggesting a focus on established firms.
LVHD’s net assets of $609 million are sufficient for basic ETF operations.

Considerations

LVHD’s dividend yield of 3.49% is lower than LVHI’s, making it less appealing for income investors.
LVHD has fewer net assets ($609m vs $6.0bn), which may impact trading liquidity.
LVHD lacks published sector weights, making it harder to assess sector concentration risks.

LVHI

Pros

LVHI’s 4.61% dividend yield is notably higher than LVHD’s, offering better income potential.
LVHI has $6.0 billion net assets, which may improve liquidity and reduce bid-ask spreads.
LVHI is older, with a longer track record of managing its strategy.

Considerations

LVHI’s 0.40% expense ratio is higher than LVHD’s, which could reduce net returns.
LVHI has no published top-10 holdings or sector weights, reducing transparency.
LVHI’s dividend yield may not be sustainable, given the need for ongoing high payouts.

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About LVHD and LVHI

LVHD (LVHD)

Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is an exchange-traded fund that aims to track an index of US-listed companies selected for relatively high dividend yields and lower realised volatility. The fund blends an income orientation with a defensive tilt, favouring stocks that historically show steadier price behaviour while offering above-average distributions. As an ETF, LVHD provides intraday liquidity and transparent holdings, but it is subject to fees, tracking error and the usual market risks—dividends and capital values can fall as well as rise. Market capitalisation is not applicable to the ETF itself; consult the fund factsheet for current yield, expense ratio and top holdings. LVHD may suit investors seeking a tilt toward income with potentially smoother returns, but this is general educational information and not personal financial advice—suitability depends on your circumstances and investment objectives.

LVHI (LVHI)

The Legg Mason LVHI ETF (LVHI) is an exchange-traded fund focused on large-cap value stocks in developed international markets. This fund aims to provide investors with exposure to established overseas companies that may be trading at attractive valuations. With a dividend yield of approximately 4.61%, it can be a useful component for those looking to combine potential income generation with global diversification. The fund holds around 219 companies and has been available to investors since July 2016. It carries an expense ratio of 0.40%, which is typical for international equity ETFs. Like all investment funds, the value of shares can fluctuate due to market conditions, currency movements, and changes in the underlying companies' performance.

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LVHD vs LVHI

Fund Snapshot