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Is Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) a Strong ETF Right Now?
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The Franklin U.S. Low Volatility High Dividend Index ETF (LVHD - Free Report) was launched on 12/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $609.75 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. LVHD seeks to match the performance of the QS Low Volatility High Dividend Index before fees and expenses.
The QS Low Volatility High Dividend Index provides stable income through investment in stocks of profitable U.S. companies with relatively high dividend yields, lower price and earnings volatility.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.27% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 3.18%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 25.5% of the portfolio, the fund has heaviest allocation to the Utilities sector; Consumer Staples and Real Estate round out the top three.
Taking into account individual holdings, Verizon Communications Inc (VZ) accounts for about 3.06% of the fund's total assets, followed by American Electric Power (AEP) and Chevron Corp (CVX).
LVHD's top 10 holdings account for about 26.51% of its total assets under management.
Performance and Risk
Year-to-date, the Franklin U.S. Low Volatility High Dividend Index ETF has added roughly 7.13% so far, and was up about 13% over the last 12 months (as of 04/22/2026). LVHD has traded between $38.97 $44.64 in this past 52-week period.
LVHD has a beta of 0.64 and standard deviation of 11.64% for the trailing three-year period. With about 118 holdings, it effectively diversifies company-specific risk .
Alternatives
Franklin U.S. Low Volatility High Dividend Index ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $87.08 billion in assets, Vanguard Value Index Fund ETF Shares has $169.74 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) a Strong ETF Right Now?
The Franklin U.S. Low Volatility High Dividend Index ETF (LVHD - Free Report) was launched on 12/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $609.75 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. LVHD seeks to match the performance of the QS Low Volatility High Dividend Index before fees and expenses.
The QS Low Volatility High Dividend Index provides stable income through investment in stocks of profitable U.S. companies with relatively high dividend yields, lower price and earnings volatility.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.27% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 3.18%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 25.5% of the portfolio, the fund has heaviest allocation to the Utilities sector; Consumer Staples and Real Estate round out the top three.
Taking into account individual holdings, Verizon Communications Inc (VZ) accounts for about 3.06% of the fund's total assets, followed by American Electric Power (AEP) and Chevron Corp (CVX).
LVHD's top 10 holdings account for about 26.51% of its total assets under management.
Performance and Risk
Year-to-date, the Franklin U.S. Low Volatility High Dividend Index ETF has added roughly 7.13% so far, and was up about 13% over the last 12 months (as of 04/22/2026). LVHD has traded between $38.97 $44.64 in this past 52-week period.
LVHD has a beta of 0.64 and standard deviation of 11.64% for the trailing three-year period. With about 118 holdings, it effectively diversifies company-specific risk .
Alternatives
Franklin U.S. Low Volatility High Dividend Index ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $87.08 billion in assets, Vanguard Value Index Fund ETF Shares has $169.74 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.