At a glance
USPX charges 0.03% a year, below the 0.08% average of the 8 funds most like it (the 2nd cheapest of 9). It has $1.98B in assets, the 9th largest of that group; it paid 1.03% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +12.9% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds; over three years it returned +24.9% a year. Its ten largest positions make up 36.2% of the fund, out of 483 in all.
The short version
Franklin U.S. Equity Index ETF (USPX) is a Franklin Templeton index fund. It tracks the Morningstar US Target Market Exposure Index: roughly 500 large and mid-sized U.S. companies that make up the top 85% of the U.S. stock market by value. Its 0.03% expense ratio matches VOO and IVV and is below SPY's 0.0945%. Its holdings overlap about 97% with S&P 500 funds, but it is far smaller, with about $1.98 billion in assets as of June 30, 2026.
Price history
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USPX +12.9% 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 | |
|---|---|---|---|---|---|---|
| USPX official prospectus, to Dec 31, 2025 | — | +17.72% | — | +12.62% | — | +11.96% |
| Morningstar® US Target Market Exposure Index index, same period | — | +17.80% | — | +13.88% | — | — |
| Linked Morningstar® US Target Market Exposure Index index, same period | — | +17.80% | — | +12.68% | — | +11.98% |
| USPX price data to Oct 27, 2026 | +13.4% | +12.9% | +24.9% | — | — | +17.7% |
- Over the year to Oct 27, 2026, USPX returned +12.9%, 2nd of 9 among similar funds.
- Its worst full calendar year was 2025 (+17.8%); its best was 2023 (+27.1%).
- The deepest fall in its price history was 19.2% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 26, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +13.4% | — |
| 2025 | +17.8% | +17.72% |
| 2024 | +24.9% | +24.88% |
| 2023 | +27.1% | +27.16% |
| 2022 | — | -18.86% |
| 2021 | — | +19.46% |
| 2020 | — | +9.74% |
| 2019 | — | +26.10% |
| 2018 | — | -7.14% |
| 2017 | — | +23.38% |
| 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 | Not in the price data, which starts Aug 2, 2022 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Not in the price data, which starts Aug 2, 2022 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.4800 | |
| 2025 | $0.6400 | +3.2% |
| 2024 | $0.6200 | +10.7% |
| 2023 | $0.5600 |
What's inside
As of Jun 30, 2026, the fund held 483 securities; the ten largest made up 36.17% of assets.
| Holding | Weight | |
|---|---|---|
| NVIDIA CORP | 7.29% | |
| APPLE INC | 6.59% | |
| MICROSOFT CORP | 4.31% | |
| AMAZON.COM INC | 3.64% | |
| ALPHABET INC Class A | 3.25% | |
| BROADCOM INC | 2.73% | |
| ALPHABET INC Class C | 2.59% | |
| MICRON TECHNOLOGY INC | 2.02% | |
| META PLATFORMS INC | 1.92% | |
| TESLA INC | 1.84% | |
| ELI LILLY & COMPANY | 1.50% | |
| ADVANCED MICRO DEVICES INC | 1.48% | |
| BERKSHIRE HATHAWAY INC | 1.44% | |
| JP MORGAN CHASE & COMPANY | 1.37% | |
| JOHNSON & JOHNSON | 0.95% |
By country
United States 96.95%Ireland 2%Switzerland 0.25%Liberia 0.13%Netherlands 0.12%By asset type
Stocks 99.89%Preferred stock 0%By sector
Sectors of the companies held, for the 91.1% 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 added a net $200.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +10.49%, +5.26%, -0.94%.
How it works
USPX is a passive fund. It aims to match the Morningstar US Target Market Exposure Index, before fees. Morningstar sets the index with published rules. The index holds the large and mid-sized U.S. stocks that make up the top 85% of the market. It weights each company by float-adjusted market value. That means only shares available to the public count, and bigger companies get bigger weights. As of May 31, 2026, the index held 506 stocks, ranging from $8.02 billion to $5.11 trillion in market value.
The fund keeps at least 80% of its assets in index stocks. It can own every stock at its index weight, or a sample chosen to behave like the whole index. The index rebalances its weights every quarter and resets its membership twice a year. The fund follows along. Trading inside the fund is light: portfolio turnover was 3%.
The fund may use stock index futures and total return swaps to keep spare cash invested. As of June 30, 2026, it held no derivatives. Because the index weights by size, a few giants dominate. NVIDIA (7.3%), Apple (6.6%) and Microsoft (4.3%) led the fund, and technology made up 35% of assets. If a few stocks grow large enough, the fund could become legally non-diversified.
What it really costs
- USPX charges 0.03% a year, versus an average of 0.08% for the similar funds below (2nd of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $3 in the first year and $39 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| USPX | $3 | $9 | $17 | $39 |
In a retirement portfolio
It owns roughly 500 large and mid-sized U.S. companies in proportion to their size, at a 0.03% expense ratio.
USPX could anchor the U.S. stock part of a portfolio, but it takes the market's full swings. It launched in 2016, so it has no 2008 record. Its prospectus shows a 20.45% loss in the first quarter of 2020. It also fell 18.86% in 2022, its worst calendar year from 2017 through 2025. Price data starts in August 2022. In that period, its deepest drop was 19.2%, from February 19 to April 8, 2025. It recovered within about 2.6 months. Selling shares during a slump locks in losses, so cash or bonds set aside for near-term spending may help. The yield was 1.03% as of October 27, 2026, paid quarterly. Costs are low: $39 over 10 years in the SEC's standard $10,000 example. 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 wanting about 480 large and mid-sized U.S. stocks in one fund for 0.03% a year, below the 0.08% average of similar funds.
- Long-term holders comfortable with the top 10 holdings, led by NVIDIA, Apple and Microsoft, making up 36% of assets as of June 30, 2026.
- People who value little trading inside the fund: portfolio turnover was 3%, which can help keep costs and taxable distributions down.
Look elsewhere if
- Those who need meaningful income from their holdings: the yield was 1.03% as of October 27, 2026, paid quarterly.
- Investors uneasy about tech concentration: technology was 35% of the fund as of June 30, 2026, and the index sets that weighting, not a manager.
- Those wanting small-company stocks: the index covers only the top 85% of the market, unlike total-market funds such as ITOT.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| USPX this fund | — | 0.03% | $1.98B | +12.9% | +24.9% |
| SPY SPDR S&P 500 ETF Trust | 97% | 0.0945% | $781.19B | +11.5% | +21.9% |
| IVV iShares Core S&P 500 ETF | 97% | 0.03% | $888.13B | +11.5% | +22.0% |
| VOO Vanguard S&P 500 ETF | 97% | 0.03% | $1.67T | +12.4% | +23.6% |
| SPYX SPDR S&P 500 Fossil Fuel Reserves Free ETF | 94% | 0.2% | $2.74B | +12.6% | +24.8% |
| BKLC BNY Mellon US Large Cap Core Equity ETF | 93% | 0% | $5.47B | +13.4% | +25.4% |
| SPTM SPDR Portfolio S&P 1500 Composite Stock Mar… | 91% | 0.03% | $13.58B | +11.9% | +21.5% |
| ITOT iShares Core S&P Total U.S. Stock Market ETF | 88% | 0.03% | $94.14B | +11.4% | +21.8% |
Questions investors ask
What index does USPX track?
USPX tracks the Morningstar US Target Market Exposure Index. That index holds the large and mid-sized U.S. companies that make up the top 85% of the investable U.S. stock market, weighted by the value of their publicly available shares. As of May 31, 2026, it held 506 stocks. It rebalances quarterly and resets its membership twice a year. It leaves out small companies, so it is not a total-market fund.
What's the difference between USPX and VOO?
Very little in what they own, but a lot in size. VOO tracks the S&P 500, while USPX tracks a Morningstar index. Their holdings overlap about 97%, and both charge 0.03%. VOO held about $1.67 trillion as of June 30, 2026, compared with about $1.98 billion for USPX. Returns were close: over one year, 12.9% for USPX (through October 27, 2026) versus 13.2% for VOO (through October 29, 2026). Their three-year annualized returns matched at 24.9%.
Does USPX pay dividends?
Yes. USPX pays dividends quarterly, passing along what its stocks pay. Over the twelve months to October 27, 2026, it paid $0.69 per share, a yield of 1.03%. That is a modest yield, because many of its largest holdings, such as NVIDIA, Amazon and Tesla, pay little or nothing. Investors looking mainly for income may want to compare it with dividend-focused funds.
How has USPX performed over time?
Over long periods, it has roughly matched its index. As of December 31, 2025, the prospectus shows average annual returns of 17.72% over one year, 12.62% over five years and 11.96% since its 2016 launch. Its linked benchmark returned 12.68% a year over five years. Calendar-year results ranged from a 27.16% gain in 2023 to an 18.86% loss in 2022. It also lost 7.14% in 2018.
Is USPX good for retirement?
It can serve as a low-cost core stock holding, but it is 100% stocks and will fall with the market. Expenses are 0.03% a year, about $39 over 10 years in the SEC's standard $10,000 example. It lost 18.86% in 2022 and 20.45% in the first quarter of 2020. Its yield was 1.03% as of October 27, 2026. Retirees drawing income may want other assets for spending needs in bad years.