IQM vs SPY
IQM vs SPY
Franklin Intelligent Machines ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. IQM delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | IQM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $97M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 78 | 505 | |
| YTD Return | +20.98% | +13.79% | |
| 1Y Return | +34.66% | +23.66% | |
| 3Y Return (annualized) | +32.10% | +21.40% | |
| 5Y Return (annualized) | +16.72% | +13.37% | |
| Volatility (annualized) | 28.6% | 15.3% | |
| Max Drawdown | -44.9% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 25, 2020 | Jan 22, 1993 |
IQM vs SPY Performance
Franklin Intelligent Machines ETF (IQM) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IQM returned +34.66% while SPY returned +23.66%. Year to date, IQM is up 20.98% versus a gain of 13.79% for SPY.
Over three years, IQM compounded at +32.10% per year against +21.40% for SPY; over five years the annualized figures are +16.72% and +13.37% respectively. Across the full 6-year window we track, IQM has the edge at +26.05% annualized vs +8.85%. 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 15.3% for SPY. 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 SPY. 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 SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, IQM currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
IQM and SPY share 6 holdings out of 511 unique holdings combined, representing a 6.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IQM | Weight in SPY | Difference |
|---|---|---|---|
| AAPL | 3.06% | 7.09% | 4.03% |
| GEV | 3.31% | 0.48% | 2.83% |
| AMAT | 2.50% | 0.73% | 1.77% |
| AMD | Pro | Pro | Pro |
| APH | Pro | Pro | Pro |
| ADI | Pro | Pro | Pro |
See all 6 holdings IQM shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, IQM or SPY?
IQM has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, IQM or SPY?
Over the past year IQM returned +34.66% vs +23.66% for SPY, so IQM leads on 1-year performance. Over the longest common window we track (6 years), IQM annualized +26.05% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IQM or SPY?
IQM has been the more volatile fund at 28.6% annualized versus 15.3% for SPY. Worst drawdown: IQM -44.9% vs SPY -56.5%.
Should I hold both IQM and SPY?
IQM and SPY 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 SPY?
IQM and SPY share 6 common holdings with a 6.1% weight overlap. Combined, they hold 511 unique securities.
Which pays a higher dividend, IQM or SPY?
IQM yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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