At a glance
LVHD charges 0.27% a year, the same as the average of the 8 funds most like it (the 5th cheapest of 9). It has $606.9M in assets, the 9th largest of that group; it paid 3.3% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +11.6% with distributions reinvested (S&P 500: +11.5%), 6th of those 9 funds; over three years it returned +15.4% a year. At its worst it fell 37.2% in the 2020 crash (S&P 500: 33.7%) and 16.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 11 months and 22 months after the lows. Its ten largest positions make up 24.8% of the fund, out of 113 in all.
The short version
Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) tracks the Franklin Low Volatility High Dividend Index. The index is a rules-based mix of profitable U.S. stocks with relatively high dividend yields and steadier prices and earnings. Its largest sectors are consumer staples and utilities. Its 0.27% annual fee matches the average for similar funds, but it is more than three times what HDV (0.08%) or SCHD (0.06%) charge.
Price history
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LVHD +11.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LVHD official prospectus, to Dec 31, 2025 | — | +7.52% | — | +7.83% | +8.51% | — |
| Russell3000Index index, same period | — | +17.15% | — | +13.15% | +14.29% | — |
| LVHD price data to Oct 27, 2026 | +13.5% | +11.6% | +15.4% | +7.6% | +8.8% | +9.0% |
- Over the year to Oct 27, 2026, LVHD returned +11.6%, 6th of 9 among similar funds.
- Its 5-year annualized return was +7.6% and its 10-year +8.8%.
- In the 2020 COVID crash it fell 37.2% and regained its old high 11.4 months after the low.
- Its worst full calendar year was 2018 (-5.6%); its best was 2021 (+27.1%).
- The deepest fall in its price history was 37.3% (Jan 23, 2020 to Mar 23, 2020), recovered by Mar 8, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +13.5% | — |
| 2025 | +7.5% | +7.52% |
| 2024 | +11.2% | +10.05% |
| 2023 | -1.0% | -1.09% |
| 2022 | -1.8% | -1.58% |
| 2021 | +27.1% | +26.56% |
| 2020 | -1.3% | -1.11% |
| 2019 | +22.9% | +22.57% |
| 2018 | -5.6% | -5.18% |
| 2017 | +14.2% | +14.11% |
| 2016 | +17.9% | +18.32% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 36.9% over that stretch · deepest drop along the way 37.2%, back to its old high 11.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 13.9% over that stretch · deepest drop along the way 16.8%, back to its old high 21.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7800 | |
| 2025 | $1.3300 | -33.5% |
| 2024 | $2.0000 | +55.0% |
| 2023 | $1.2900 | +3.2% |
| 2022 | $1.2500 | +15.1% |
| 2021 | $1.0856 | +1.5% |
| 2020 | $1.0700 | -5.3% |
| 2019 | $1.1300 | +3.7% |
| 2018 | $1.0900 | +4.8% |
| 2017 | $1.0400 | +44.4% |
| 2016 | $0.7200 |
What's inside
As of Jun 30, 2026, the fund held 113 securities; the ten largest made up 24.78% of assets.
| Holding | Weight | |
|---|---|---|
| KIMBERLY CLARK CORP | 2.70% | |
| JOHNSON & JOHNSON | 2.68% | |
| ALTRIA GROUP INC | 2.63% | |
| COCA-COLA COMPANY (THE) | 2.60% | |
| US BANCORP | 2.54% | |
| HOME DEPOT INC (THE) | 2.48% | |
| PROCTER & GAMBLE COMPANY (THE) | 2.45% | |
| SOUTHERN COMPANY (THE) | 2.24% | |
| DUKE ENERGY CORP | 2.23% | |
| PNC FINANCIAL SERVICES GROUP INC (THE) | 2.23% | |
| VERIZON COMMUNICATIONS INC | 2.20% | |
| MCDONALD'S CORP | 2.15% | |
| CHEVRON CORP | 2.12% | |
| PEPSICO INC | 2.10% | |
| KINDER MORGAN INC | 2.10% |
By country
United States 96.85%Ireland 1.93%By asset type
Stocks 98.78%By sector
Sectors of the companies held, for the 69.5% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $21.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.40%, -1.90%, +3.70%.
How it works
LVHD is an index fund. It aims to match the Franklin Low Volatility High Dividend Index, not beat it, and it does not move to cash when markets fall. Franklin Advisers designed the index. It is the fund's subadviser and an affiliate of Franklin Templeton. The index starts with the largest 3,000 U.S. stocks in the Solactive US Broad Market Index. A company must have been profitable over its last four fiscal quarters combined. Stocks whose dividends aren't supported by earnings are dropped. Each remaining stock gets a "stable yield" score. Its dividend yield is marked down if its price and earnings swing a lot, and marked up if they are steadier.
The index is expected to hold 50 to 100 stocks. Its membership is reset once a year, and weights are rebalanced each quarter. At each yearly reset, no stock may exceed 2.5%, no sector 25%, and real estate investment trusts (REITs, companies that own property) 15% combined. Market moves can push weights past those limits between resets. As of June 30, 2026, the fund had 113 holdings, with 24.8% of assets in its top 10.
At least 80% of assets must be in index stocks or close equivalents. The fund may hold a representative sample, meaning a subset that resembles the index, rather than every stock. Up to 20% can go into futures, other derivatives, cash or other funds. The fund uses stock index futures to manage sector exposure and cash.
What it really costs
- LVHD charges 0.27% a year, versus an average of 0.27% for the similar funds below (5th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $28 in the first year and $343 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LVHD | $28 | $87 | $152 | $343 |
In a retirement portfolio
Its main draw is quarterly dividends, with a 3.3% trailing yield as of October 27, 2026, but its deep drop in 2020 shows it is not a reliable cushion in a crash.
LVHD could supply part of a portfolio's income. Its trailing 12-month yield was 3.3% ($1.47 per share) as of October 27, 2026, paid quarterly. Under the SEC's standard example, fees on $10,000 come to $28 in year one and $343 over 10 years. "Low volatility" has not meant shallow losses. In the 2020 COVID crash, it fell 37.2% and took roughly 11 months to recover. In 2022 it fell 16.8% and needed about 21.5 months to regain its peak. Its worst calendar year was 2018, at -5.18%. It launched in 2015, so it has no 2008 record. Selling shares in a slump like 2020 would have locked in steep losses. Growth has also lagged: 8.51% a year over 10 years through December 31, 2025, versus 14.29% for the Russell 3000 Index. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking quarterly dividend income from about 113 U.S. stocks, with a trailing yield of 3.3% as of October 27, 2026.
- Those who prefer steady dividend payers such as Kimberly-Clark, Johnson & Johnson, Coca-Cola and Duke Energy over fast-growing companies.
- Investors who like rules that exclude unprofitable companies and dividends not covered by earnings, and cap any stock at 2.5% at each annual reset.
Look elsewhere if
- Cost-focused investors: HDV charges 0.08% and SCHD 0.06%, versus LVHD's 0.27%, and their holdings overlap LVHD's by 38% and 27%.
- Growth seekers: over 10 years through December 31, 2025, LVHD returned 8.51% a year versus 14.29% for the Russell 3000 Index.
- Anyone wanting crash protection: despite the low-volatility label, it fell 37.2% in the 2020 COVID crash and needed 21.5 months to recover from 2022's drop.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| LVHD this fund | — | 0.27% | $606.9M | +11.6% | +15.4% |
| HDV iShares Core High Dividend ETF | 38% | 0.08% | $14.90B | +38.0% | +21.7% |
| SPLV Invesco S&P 500® Low Volatility ETF | 36% | 0.25% | $7.09B | +6.2% | +11.8% |
| FDL First Trust Morningstar Dividend Leaders In… | 36% | 0.45% | $7.29B | +26.1% | +23.9% |
| SPHD Invesco S&P 500® High Dividend Low Volatili… | 33% | 0.3% | $3.41B | +10.0% | +15.8% |
| FDV Federated Hermes U.S. Strategic Dividend ETF | 32% | 0.5% | $880.6M | +20.7% | +20.3% |
| LGLV SPDR SSGA US Large Cap Low Volatility Index… | 31% | 0.12% | $1.14B | +7.7% | +15.0% |
| DHS WisdomTree US High Dividend Fund | 27% | 0.38% | $1.50B | +20.5% | +21.1% |
Questions investors ask
Does LVHD pay monthly dividends?
No. LVHD pays dividends quarterly, not monthly. Over the 12 months through October 27, 2026, it paid $1.47 per share, a trailing yield of 3.3%. Payouts depend on the dividends its holdings pay, so they can rise or fall. The prospectus warns there is no guarantee the companies in the fund will keep paying dividends at the same level. The index does, however, screen out stocks whose yields aren't supported by earnings.
LVHD vs SPHD: what's the difference?
Both aim for high dividends with lower volatility, but they draw from different pools of stocks. As its name signals, the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) draws from the S&P 500. LVHD starts with the largest 3,000 U.S. stocks, so it can include mid-size and small companies. Their holdings overlapped by 33% in the latest N-PORT reports. SPHD charges 0.30% a year, versus 0.27% for LVHD. As of October 27, 2026, SPHD returned 10% over one year, versus 11.6% for LVHD.
Is LVHD good for retirement income?
It may suit retirees who want quarterly dividends from steady U.S. companies, but there are trade-offs. Its trailing yield was 3.3% as of October 27, 2026. However, it fell 37.2% in the 2020 COVID crash and took about 21.5 months to recover from its 2022 drop. It also trailed the broad market: 8.51% a year over 10 years through December 31, 2025, versus 14.29% for the Russell 3000 Index. It is worth weighing as one part of a wider portfolio rather than on its own.
What are LVHD's top holdings?
As of June 30, 2026, LVHD's largest holdings were Kimberly-Clark (2.7%), Johnson & Johnson (2.7%), Altria (2.6%), Coca-Cola (2.6%) and U.S. Bancorp (2.5%). Next came Home Depot, Procter & Gamble, Southern Company, Duke Energy and PNC Financial. The fund had 113 holdings, and the top 10 made up 24.8% of assets, so no single stock dominates. Consumer staples and utilities were its largest sectors.
What is LVHD's expense ratio?
LVHD's expense ratio is 0.27% a year, according to its prospectus filed July 24, 2026. That equals the average for the similar funds compared here. It is well above HDV (0.08%), SCHD (0.06%) and LGLV (0.12%), and below SPHD (0.30%) and FDL (0.45%). Under the SEC's standard example, a $10,000 investment earning 5% a year would cost about $28 after one year, $152 after five years and $343 after ten.