What are the fundamental differences between LVHD and SPLV in terms of investment strategy?

Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) focuses on a mid-cap value strategy with a higher dividend yield, while S&P 500 Low Volatility ETF PowerShares (SPLV) tracks a large-cap value index. These funds use different underlying indices, leading to distinct holdings and market exposures despite both targeting low-volatility characteristics.

How do the inception dates of LVHD and SPLV impact their historical track records?

LVHD began in late 2015, while SPLV started in May 2011. This means SPLV provides a longer operational history. Investors should be aware of how fund age affects the amount of historical data available for evaluation.

What is the significance of the 'low volatility' designation in these ETFs?

Both LVHD and SPLV incorporate low volatility as part of their strategy. This means they seek to minimise risk and price fluctuation relative to their benchmarks. It’s about stability rather than high returns.

How do the expense ratios of LVHD and SPLV compare over time?

LVHD has an expense ratio of 0.27%, while SPLV is slightly lower at 0.25%. Over time, even small differences can impact net returns, especially with compounding. Investors should consider how fee levels affect long-term performance.

What should I know about the dividend yields of LVHD and SPLV?

LVHD offers a higher dividend yield of 3.49%, compared to SPLV's 2.28%. Higher yields can attract income-focused investors, but you must also consider how dividends are distributed. Both are ETFs, so distributions may vary.

How do the top holdings differ between LVHD and SPLV?

LVHD holds major stocks like Johnson & Johnson and Procter & Gamble, while SPLV's top holdings include Berkshire Hathaway and FirstEnergy. Their top-10 holdings show no overlap, indicating divergent stock selection processes.

Are there any sector concentration risks to be aware of in these ETFs?

SPLV's holdings lean heavily towards utilities and industrial companies, which may create sector concentration risk. LVHD focuses on defensive large-caps, but both sectors can experience market fluctuations.

How might the different market capitalisation focuses of LVHD and SPLV affect performance?

LVHD's emphasis on mid-cap value and SPLV's focus on large-cap stability mean they could react differently to economic cycles and market movements. Understanding these differences helps anticipate potential performance impacts.

Do the net asset sizes of LVHD and SPLV influence their liquidity?

SPLV’s $7.2 billion in net assets suggests strong investor demand and liquidity. LVHD, with $609 million, might have lower liquidity. Investors often find that larger funds have more trading volume and liquidity.

What is the importance of the fund category in evaluating these ETFs?

Understanding the categorisation of LVHD as Mid-Cap Value and SPLV as Large Value helps in assessing alignment with investor goals and the types of stocks included in each fund. Misalignment can be a source of confusion.

How can I find out more about the tracking methods of these ETFs?

Currently, the specific indices tracked by LVHD and SPLV are not available. Checking the fund provider’s official documentation would provide detailed information on how each fund tracks its benchmark.

LVHD vs SPLV

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

Compare LVHD and SPLV, two low-volatility ETFs. This page examines fees, holdings, dividends, and tracking to help you understand their distinct approaches to defensive income strategies. LVHD targets mid-cap value with higher yields, while SPLV focuses on large-cap stability. Educational content, not financial advice.

Compare LVHD and SPLV, two low-volatility ETFs. This page examines fees, holdings, dividends, and tracking to help you understand their distinct approaches to defensive income strategies. LVHD targets...

Fund Snapshot

Key Fund Metrics

LVHD

Metric

SPLV

0.27%

Expense Ratio

0.25%

3.49%

Dividend Yield

2.28%

$609.35M

Net Assets

$7.19B

117

Holdings

107

Dec 29, 2015

Inception Date

May 5, 2011

–

Index Tracked

–

Mid-Cap Value

Fund Category

Large Value

SPLV costs about $2.00 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 offers a higher dividend yield of 3.49%, potentially attracting income-focused investors.
Portfolio includes established large-cap defensive names like Johnson & Johnson and Procter & Gamble.
Inception in late 2015 provides a reasonably long track record for strategy evaluation.

Considerations

Expense ratio of 0.27% is marginally higher than some comparable low-volatility dividend funds.
Net assets of $609 million are smaller, possibly indicating lower liquidity compared to larger ETFs.
Categorised as Mid-Cap Value despite holding many large-cap stocks, which may confuse investors.

SPLV

Pros

Substantial net assets of $7.2 billion suggest strong investor demand and high liquidity.
Inception in May 2011 provides a longer operational history, potentially offering more data points.
Expense ratio of 0.25% is slightly lower than LVHD, contributing to modestly reduced costs.

Considerations

Dividend yield of 2.28% is notably lower than LVHD, making it less appealing for income.
Top holdings are heavily skewed towards utilities and industrial companies, indicating sector concentration.
Categorised as Large Value, but actual holdings may not align perfectly with broad market value.

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About LVHD and SPLV

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.

SPLV (SPLV)

SPLV (Invesco S&P 500® Low Volatility ETF) is an exchange-traded fund that seeks to offer S&P 500 exposure with reduced price swings. The fund tracks a rules-based index that selects stocks from the S&P 500 with lower historical volatility and weights them to favour more stable names. Investors often consider SPLV when they want equity market participation but hope for a smoother ride compared with the full S&P 500. It can act as a defensive sleeve within a diversified portfolio, but it is still subject to market risk — returns can fall and are not guaranteed. SPLV’s strategy may underperform in strong bull markets where higher-volatility stocks lead, and its sector and factor tilts can differ from the broad market. Suitable for investors seeking lower short‑term volatility and prepared for equity risk over the medium to long term, it is educational to compare fees, tracking error and holdings before investing.

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