IQM vs VOO
Franklin Intelligent Machines ETF vs Vanguard S&P 500 ETF
Which is better, IQM or VOO?
Large Cap Growth against Large Cap Blend.
VOO has a lower expense ratio. IQM led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 42.7%.
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 | VOO |
|---|---|---|
| Expense Ratio | 0.50% | 0.03%Best |
| AUM | $88M | $997.4B |
| Dividend Yield | 0.00% | 1.08% |
| Holdings | 80 | 509 |
| YTD Return | +16.03%Best | +13.81% |
| 1Y Return | +31.63%Best | +21.53% |
| 3Y Return (annualized) | +29.59%Best | +21.46% |
| 5Y Return (annualized) | +15.02%Best | +12.87% |
| Volatility (annualized) | 28.4% | 16.7%Best |
| Max Drawdown | -44.9% | -28.9%Best |
| $10,000 over 5 years | $20,131Best | $18,319 |
| Top 10 Weight | 42.7% | 36.4%Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Feb 25, 2020 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Feb 27, 2020 to Sep 3, 2026 (6.5 years).
IQM vs VOO 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 6.5 years both funds cover.
IQM vs VOO Performance
Franklin Intelligent Machines ETF (IQM) is an ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year IQM returned +31.63% while VOO returned +21.53%. Year to date, IQM is up 16.03% versus a gain of 13.81% for VOO.
Over three years, IQM compounded at +29.59% per year against +21.46% for VOO; over five years the annualized figures are +15.02% and +12.87% respectively. Across the full 7-year window we track, IQM has the edge at +24.92% annualized vs +17.18%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IQM has been the more volatile fund, with annualized monthly volatility of 28.4% compared with 16.7% 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 -28.9% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 1.08% for VOO.
Holdings Overlap
57.8% of IQM's money is in holdings VOO also owns. 30.8% of VOO's money is in holdings IQM also owns.
The two portfolios partly overlap.
33 positions in common, counted across the 78 positions we hold weights for in IQM and 505 in VOO, against full books of 80 and 509.
What only one of them owns
Our book lists 465 positions for VOO that do not appear in our book for IQM (68.8% of the fund), and 23 for IQM that do not appear in VOO (17.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IQM | Weight in VOO | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.50% | 7.51% | 0.01% |
| AAPLApple, Inc | 3.65% | 6.59% | 2.94% |
| AVGOBroadcom Inc | 4.81% | 2.77% | 2.04% |
| GOOGLAlphabet Inc.Class A | 1.25% | 3.25% | 2.00% |
| SNDKSandisk Corp/De | 3.90% | 0.52% | 3.38% |
| GEVGE Vernova Inc. CDR (CAD Hedged) | 3.33% | 0.49% | 2.84% |
| TSLATesla Motors Inc | 1.74% | 1.84% | 0.10% |
| AMDAdvanced Micro Devices Inc | 1.96% | 1.47% | 0.49% |
| LRCXLam Research Corp | 2.44% | 0.84% | 1.60% |
| AMATApplied Materials, Inc. | 2.14% | 0.89% | 1.25% |
57.8% of IQM is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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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, by $47 a year on a $10,000 investment.
Which performed better, IQM or VOO?
Over the past year IQM returned +31.63% vs +21.53% for VOO, so IQM leads on 1-year performance. Over the longest common window we track (7 years), IQM annualized +24.92% vs +17.18% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IQM or VOO?
IQM has been the more volatile fund at 28.4% annualized versus 16.7% for VOO. Worst drawdown: IQM -44.9% vs VOO -28.9%.
Should I hold both IQM and VOO?
IQM and VOO have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IQM and VOO?
57.8% of IQM's money is in holdings VOO also owns. 30.8% of VOO's is in holdings IQM also owns. They hold 33 positions in common, counted across the 78 positions we hold weights for in IQM and 505 in VOO.
Which pays a higher dividend, IQM or VOO?
IQM yields 0.00% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
Is VOO better than IQM?
VOO has a lower expense ratio. IQM led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 42.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.