IQM vs IVV
Franklin Intelligent Machines ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IQM delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IQM | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $95M | $907.0B | |
| Dividend Yield | 0.00% | 1.10% | |
| Holdings | 78 | 508 | |
| YTD Return | +18.31% | +12.28% | |
| 1Y Return | +35.42% | +20.94% | |
| 3Y Return (annualized) | +32.18% | +21.81% | |
| 5Y Return (annualized) | +16.56% | +13.05% | |
| Volatility (annualized) | 28.6% | 15.1% | |
| Max Drawdown | -44.9% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Feb 25, 2020 | May 15, 2000 |
IQM vs IVV Performance
Franklin Intelligent Machines ETF (IQM) is a ETF from Franklin Templeton Investments (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year IQM returned +35.42% while IVV returned +20.94%. Year to date, IQM is up 18.31% versus a gain of 12.28% for IVV.
Over three years, IQM compounded at +32.18% per year against +21.81% for IVV; over five years the annualized figures are +16.56% and +13.05% respectively. Across the full 7-year window we track, IQM has the edge at +25.46% annualized vs +6.98%. 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 15.1% for IVV. 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 -56.5% for IVV. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IQM charges 0.50% per year while IVV 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 1.10% for IVV.
Holdings Overlap
IQM and IVV share 31 holdings out of 552 unique holdings combined, representing a 23.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IQM or IVV?
IQM has an expense ratio of 0.50% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, IQM or IVV?
Over the past year IQM returned +35.42% vs +20.94% for IVV, so IQM leads on 1-year performance. Over the longest common window we track (7 years), IQM annualized +25.46% vs +6.98% for IVV. Past performance does not guarantee future results.
Which is riskier, IQM or IVV?
IQM has been the more volatile fund at 28.6% annualized versus 15.1% for IVV. Worst drawdown: IQM -44.9% vs IVV -56.5%.
Should I hold both IQM and IVV?
IQM and IVV have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQM and IVV?
IQM and IVV share 31 common holdings with a 23.5% weight overlap. Combined, they hold 552 unique securities.
Which pays a higher dividend, IQM or IVV?
IQM yields 0.00% while IVV yields 1.10%, so IVV currently pays the higher dividend yield.
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