IQM vs SCHD
IQM vs SCHD
Franklin Intelligent Machines ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. IQM delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | IQM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $97M | $103.7B | |
| Dividend Yield | 0.00% | 3.31% | |
| Holdings | 78 | 104 | |
| YTD Return | +20.98% | +24.26% | |
| 1Y Return | +34.66% | +31.38% | |
| 3Y Return (annualized) | +32.10% | +15.08% | |
| 5Y Return (annualized) | +16.72% | +9.72% | |
| Volatility (annualized) | 28.6% | 13.6% | |
| Max Drawdown | -44.9% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 25, 2020 | Oct 20, 2011 |
IQM vs SCHD Performance
Franklin Intelligent Machines ETF (IQM) is a ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IQM returned +34.66% while SCHD returned +31.38%. Year to date, IQM is up 20.98% versus a gain of 24.26% for SCHD.
Over three years, IQM compounded at +32.10% per year against +15.08% for SCHD; over five years the annualized figures are +16.72% and +9.72% respectively. Across the full 6-year window we track, IQM has the edge at +26.05% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IQM has been the more volatile fund, with annualized monthly volatility of 28.6% compared with 13.6% for SCHD. 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 -33.4% for SCHD. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IQM charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, IQM currently yields 0.00% against 3.31% for SCHD.
Holdings Overlap
IQM and SCHD share 0 holdings out of 114 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IQM or SCHD?
IQM has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, IQM or SCHD?
Over the past year IQM returned +34.66% vs +31.38% for SCHD, so IQM leads on 1-year performance. Over the longest common window we track (6 years), IQM annualized +26.05% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, IQM or SCHD?
IQM has been the more volatile fund at 28.6% annualized versus 13.6% for SCHD. Worst drawdown: IQM -44.9% vs SCHD -33.4%.
Should I hold both IQM and SCHD?
IQM and SCHD have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQM and SCHD?
IQM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 114 unique securities.
Which pays a higher dividend, IQM or SCHD?
IQM yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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