IQM vs VXUS
Franklin Intelligent Machines ETF vs Vanguard Total International Stock ETF
Which is better, IQM or VXUS?
Large Cap Growth against Large Cap Blend.
VXUS has a lower expense ratio. IQM led over 1Y, 3Y, 5Y and the full window.
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 | VXUS |
|---|---|---|
| Expense Ratio | 0.50% | 0.05%Best |
| AUM | $87M | $158.1B |
| Dividend Yield | 0.00% | 2.51% |
| Holdings | 80 | 8,747 |
| YTD Return | +23.38%Best | +12.44% |
| 1Y Return | +28.11%Best | +20.21% |
| 3Y Return (annualized) | +36.18%Best | +19.97% |
| 5Y Return (annualized) | +16.59%Best | +8.99% |
| Volatility (annualized) | 28.4% | 16.3%Best |
| Max Drawdown | -44.9% | -29.4%Best |
| $10,000 over 5 years | $21,543Best | $15,379 |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Feb 25, 2020 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 27, 2020 to Sep 24, 2026 (6.6 years).
IQM vs VXUS 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 6.6 years both funds cover.
IQM vs VXUS Performance
Franklin Intelligent Machines ETF (IQM) is an ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year IQM returned +28.11% while VXUS returned +20.21%. Year to date, IQM is up 23.38% versus a gain of 12.44% for VXUS.
Over three years, IQM compounded at +36.18% per year against +19.97% for VXUS; over five years the annualized figures are +16.59% and +8.99% respectively. Across the full 7-year window we track, IQM has the edge at +25.84% annualized vs +11.16%.
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 16.3% for VXUS. 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 -29.4% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IQM charges 0.50% per year while VXUS charges 0.05%. On a $10,000 position that is $50 vs $5 annually, a gap of $45 per year that compounds over a long holding period. On income, IQM currently yields 0.00% against 2.51% for VXUS.
Holdings Overlap
At least 8.7% of IQM's money is in holdings VXUS also owns.
Stated as a floor: for VXUS, our book for it covers 88.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
IQM and VXUS share little of their money.
8 positions in common, counted across the 81 positions we hold weights for in IQM and 8,082 in VXUS, against full books of 80 and 8,747.
Top Shared Holdings
| Stock | Weight in IQM | Weight in VXUS | Difference |
|---|---|---|---|
| CLS:CACelestica Inc. Common Stock | 4.21% | 0.08% | 4.13% |
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 1.89% | 1.41% | 0.48% |
| 009150:KRSamsung Electro-Mechanics Co Ltd | 0.73% | 0.09% | 0.64% |
| CCO:CACameco Corporation Com Npv | 0.65% | 0.08% | 0.57% |
| ESLT:ILElbit Systems Ltd. | 0.59% | 0.05% | 0.54% |
| IFX:FFInfineon Technologies AG Infineon Technologies Agnamens Aktien O N | 0.31% | 0.21% | 0.10% |
| TSEM:ILTower Semiconductor Ltd Ordinary Shares | 0.30% | 0.06% | 0.24% |
| CSU:CAConstellation Software Inc/Canada | 0.00% | 0.09% | 0.09% |
You are not choosing between two funds in isolation.
Whichever of IQM and VXUS 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 VXUS?
IQM has an expense ratio of 0.50% while VXUS charges 0.05%. VXUS is the cheaper option, by $45 a year on a $10,000 investment.
Which performed better, IQM or VXUS?
Over the past year IQM returned +28.11% vs +20.21% for VXUS, so IQM leads on 1-year performance. Over the longest common window we track (7 years), IQM annualized +25.84% vs +11.16% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IQM or VXUS?
IQM has been the more volatile fund at 28.4% annualized versus 16.3% for VXUS. Worst drawdown: IQM -44.9% vs VXUS -29.4%.
Should I hold both IQM and VXUS?
IQM and VXUS have a monthly-return correlation of 0.71, 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 VXUS?
At least 8.7% of IQM's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 8 positions in common, counted across the 81 positions we hold weights for in IQM and 8,082 in VXUS.
Which pays a higher dividend, IQM or VXUS?
IQM yields 0.00% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is VXUS better than IQM?
VXUS has a lower expense ratio. IQM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.