IQM vs QQQ
Franklin Intelligent Machines ETF vs Invesco QQQ Trust, Series 1
Which is better, IQM or QQQ?
Each has led over a different period.
QQQ has a lower expense ratio. IQM led over 3Y and the full window, QQQ over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.93.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IQM | QQQ |
|---|---|---|
| Expense Ratio | 0.50% | 0.18%Best |
| AUM | $66M | $437.3B |
| Dividend Yield | 0.00% | 0.43% |
| Holdings | 279 | 208 |
| YTD Return | +1.62% | +12.98%Best |
| 1Y Return | +1.00% | +11.59%Best |
| 3Y Return (annualized) | +25.82%Best | +23.05% |
| 5Y Return (annualized) | +10.19% | +12.74%Best |
| Volatility (annualized) | 29.0% | 21.0%Best |
| Max Drawdown | -44.9% | -35.1%Best |
| $10,000 over 5 years | $16,245 | $18,213Best |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Feb 25, 2020 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 27, 2020 to Nov 11, 2026 (6.7 years).
IQM vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.7 years both funds cover.
IQM vs QQQ Performance
Franklin Intelligent Machines ETF (IQM) is an ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IQM returned +1.00% while QQQ returned +11.59%. Year to date, IQM is up 1.62% versus a gain of 12.98% for QQQ.
Over three years, IQM compounded at +25.82% per year against +23.05% for QQQ; over five years the annualized figures are +10.19% and +12.74% respectively. Across the full 7-year window we track, IQM has the edge at +21.70% annualized vs +20.40%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IQM has been the more volatile fund, with annualized monthly volatility of 29.0% compared with 21.0% for QQQ. 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 -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.93. 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 0.43% for QQQ.
Holdings Overlap
We hold position weights for 15 holdings in IQM and 101 in QQQ, totalling 13.9% and 99.7% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 15 positions we hold weights for in IQM and 101 in QQQ, against full books of 279 and 208.
You are not choosing between two funds in isolation.
Whichever of IQM and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $32 a year on a $10,000 investment.
Which performed better, IQM or QQQ?
Over the past year IQM returned +1.00% vs +11.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), IQM annualized +21.70% vs +20.40% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IQM or QQQ?
IQM has been the more volatile fund at 29.0% annualized versus 21.0% for QQQ. Worst drawdown: IQM -44.9% vs QQQ -35.1%.
Should I hold both IQM and QQQ?
IQM and QQQ have a monthly-return correlation of 0.93, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, IQM or QQQ?
IQM yields 0.00% while QQQ yields 0.43%, so QQQ currently pays the higher dividend yield.
Is QQQ better than IQM?
QQQ has a lower expense ratio. IQM led over 3Y and the full window, QQQ over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.93. Which one suits a particular account depends on what it is for. This is information, not a recommendation.