IQM vs VOO

Quick Verdict

VOO has a lower expense ratio. IQM delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: IQMMore Diversified: VOO

Side-by-Side Comparison

MetricIQMVOOWinner
Expense Ratio0.50%0.03%
AUM$97M$979.0B
Dividend Yield0.00%1.09%
Holdings78509
YTD Return+22.08%+13.31%
1Y Return+37.08%+24.01%
3Y Return (annualized)+31.91%+21.17%
5Y Return (annualized)+16.83%+13.34%
Volatility (annualized)28.6%14.1%
Max Drawdown-44.9%-34.3%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionFeb 25, 2020Sep 7, 2010

IQM vs VOO Performance

Franklin Intelligent Machines ETF (IQM) is a ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IQM returned +37.08% while VOO returned +24.01%. Year to date, IQM is up 22.08% versus a gain of 13.31% for VOO.

Over three years, IQM compounded at +31.91% per year against +21.17% for VOO; over five years the annualized figures are +16.83% and +13.34% respectively. Across the full 6-year window we track, IQM has the edge at +26.25% annualized vs +13.55%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IQM charges 0.50% per year while VOO charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, IQM currently yields 0.00% against 1.09% for VOO.

Holdings Overlap

6.3%overlap

IQM and VOO share 6 holdings out of 513 unique holdings combined, representing a 6.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IQMWeight in VOODifference
AAPL3.06%6.59%3.53%
GEV3.31%0.49%2.82%
AMAT2.50%0.89%1.61%
AMDProProPro
APHProProPro
ADIProProPro
See all 6 holdings IQM shares with VOO
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Frequently Asked Questions

Which is cheaper, IQM or VOO?

IQM has an expense ratio of 0.50% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $47 per year of difference.

Which performed better, IQM or VOO?

Over the past year IQM returned +37.08% vs +24.01% for VOO, so IQM leads on 1-year performance. Over the longest common window we track (6 years), IQM annualized +26.25% vs +13.55% for VOO. Past performance does not guarantee future results.

Which is riskier, IQM or VOO?

IQM has been the more volatile fund at 28.6% annualized versus 14.1% for VOO. Worst drawdown: IQM -44.9% vs VOO -34.3%.

Should I hold both IQM and VOO?

IQM and VOO have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IQM and VOO?

IQM and VOO share 6 common holdings with a 6.3% weight overlap. Combined, they hold 513 unique securities.

Which pays a higher dividend, IQM or VOO?

IQM yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.

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