Franklin Income Fund is a old fund, older than SPY. Franklin Income Fund incepted in 08/31/1948 while SPY incepted on 22 Jan 1993.
Some FKINX Stats:
- Gross Expense Ratio: 0.62%.
- Dividend Frequency: Monthly.
- Index Compared: Blended 50% MSCI USA High Dividend Yield Index + 25% Bloomberg High Yield Very Liquid Index + 25% Bloomberg US Aggregate Index
Does FKINX Pay Increasing Dividends?
It does not look like FKINX pays growing dividends.
Does FKINX Beat S&P 500 Index Or Blended 50% MSCI USA High Dividend Yield Index + 25% Bloomberg High Yield Very Liquid Index + 25% Bloomberg US Aggregate Index?
The following comparison has the end date of March 22, 2022.
1 year returns
3 year returns
5 year returns
10 year returns
15 year returns
Since 1957
Downsie Rick Comparison with SPY
Invested at the high of 2000 on 3/24, FKINX beats SPY by a lot.
Invested at the high of 2007 on 10/9, SPY wins. However, from 2008 on, FKNIX beat SPY for about 6 years.
Invested at the high before COVID crises of 2020 on 2/19, SPY wins a little bit but is much more volatile.
Invested right before Fed's rate hikes of 2015 on 12/14, SPY wins by a lot. However, we see there are at least 3 times that SPY return dropped and touched that of FKINX, which means SPY is more volatile.
Invested on January 19, 1993. SPY's return more than double of that of FKNX but did dip down lower than FKINX during the 2008 crisis.
As Retirement Funds
Retire at the High in 2000, FKINX is much better than SPY
Retire at the Hight in 2007, SPY is better, but more volatile.
Sharpe Ratios Compared with SPY
FKINX has similar Sharpe ratio with SPY.
Conclusion
Franklin Income Fund does not seem to track the "Blended 50% MSCI USA High Dividend Yield Index + 25% Bloomberg High Yield Very Liquid Index + 25% Bloomberg US Aggregate Index" very well in the long run. But it does have a lower volity compared with the S&P 500 incex.
Especially if you invest in Franklin Income Fund since 1957, the return curve is smother than the S&P 500 index, which indicates the fund is safer without sacrificing too much of its returns.
If we look at the investment returns since 1993/1/19, we see during the 2008 financial crisis, SPY's return got lower than that of FKINX. It is a 15 years of holding SPY. This is one thing we need to think about, when we consider if the low-fee, passive, index funds is absolutly the only best option.
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