What this ETF is trying to do

The FRANKLIN INVESTMENT GRADE CORPORATE ETF (ticker: FLCO) is an exchange-traded fund traded on the NYSE. Based on its name, this fund focuses on investment-grade corporate assets.

What the numbers show

As of October 9, 2026, the current price of FLCO is $20.33. An estimated price from roughly one year ago was $21.79.

When looking at how this ETF has performed, it is important to understand two different measurements:

• Price Return: This measures only the change in the share price.

• Total Return: This reflects the overall return, which includes both the share-price movement and any cash distributions paid to investors.

For the year-to-date (YTD) period, the price return is -6.08%, while the total return is -2.70%. Over the last one year, the price return was -6.68% and the total return was -2.12%. However, over a three-year period, the price return was 0.91%, and the total return was 15.87%.

Income and distribution explanation

FLCO pays out cash distributions, which usually happen on a monthly basis. The distribution yield is approximately 5.01%. This number describes the cash distributions relative to the ETF's price.

It is important for new investors to know that a high distribution yield is not the same thing as total return. While distributions provide cash income, they do not guarantee that the overall value of your investment will grow.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the fund's underlying assets or its share price. FLCO has an erosion-risk score of 75, which is labeled as "mild price erosion." This means there has been some mild price deterioration. However, the ETF does not have a severe erosion-risk flag.

Pros

• The ETF provides regular income through distributions that are usually paid monthly.

• The three-year total return has been positive at 15.87%.

Cons

• Both the YTD and one-year price returns and total returns have been negative.

• The fund shows a "mild" erosion-risk score.

Beginner takeaway

When studying FLCO, notice that the share price has declined over the last year. However, because the fund pays out regular distributions, the total return is often different from the price return alone. Always remember to look at both the share-price movement and the total return to get a fuller picture of how the ETF is performing.