IQM vs QQQ
IQM vs QQQ
Franklin Intelligent Machines ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. IQM delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | IQM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $97M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 78 | 108 | |
| YTD Return | +22.08% | +17.27% | |
| 1Y Return | +37.08% | +28.64% | |
| 3Y Return (annualized) | +31.91% | +24.88% | |
| 5Y Return (annualized) | +16.83% | +14.86% | |
| Volatility (annualized) | 28.6% | 30.6% | |
| Max Drawdown | -44.9% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 25, 2020 | Mar 10, 1999 |
IQM vs QQQ Performance
Franklin Intelligent Machines ETF (IQM) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IQM returned +37.08% while QQQ returned +28.64%. Year to date, IQM is up 22.08% versus a gain of 17.27% for QQQ.
Over three years, IQM compounded at +31.91% per year against +24.88% for QQQ; over five years the annualized figures are +16.83% and +14.86% respectively. Across the full 6-year window we track, IQM has the edge at +26.25% annualized vs +13.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 28.6% for IQM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -44.9% for IQM and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IQM charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, IQM currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
IQM and QQQ share 4 holdings out of 113 unique holdings combined, representing a 6.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
Frequently Asked Questions
Which is cheaper, IQM or QQQ?
IQM has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IQM or QQQ?
Over the past year IQM returned +37.08% vs +28.64% for QQQ, so IQM leads on 1-year performance. Over the longest common window we track (6 years), IQM annualized +26.25% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, IQM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 28.6% for IQM. Worst drawdown: IQM -44.9% vs QQQ -83.0%.
Should I hold both IQM and QQQ?
IQM and QQQ have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IQM and QQQ?
IQM and QQQ share 4 common holdings with a 6.6% weight overlap. Combined, they hold 113 unique securities.
Which pays a higher dividend, IQM or QQQ?
IQM yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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