If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD Quick QuoteLVHD - Free Report) , a passively managed exchange traded fund launched on December 28, 2015.

The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $593.75 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.27%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 3.54%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Utilities sector -- about 24.4% of the portfolio. Consumer Staples and Real Estate round out the top three.

Looking at individual holdings, Johnson & Johnson (JNJ) accounts for about 2.9% of total assets, followed by Verizon Communications Inc (VZ) and Coca-Cola Co/the (KO).

The top 10 holdings account for about 26.72% of total assets under management.

Performance and Risk

LVHD seeks to match the performance of the QS Low Volatility High Dividend Index before fees and expenses. The Franklin Low Volatility High Dividend Index composes of equity securities of U.S. companies with relatively high yield and low price and earnings volatility.

The ETF return is roughly 7.49% so far this year and it's up approximately 6.6% in the last one year (as of 10/12/2026). In the past 52-week period, it has traded between $39.47 and $45.84.

The ETF has a beta of 0.57 and standard deviation of 11.61% 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, LVHD is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Morningstar Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $110.11 billion in assets, Vanguard Morningstar Value ETF has $188.14 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

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.