IQM vs VXUS
Franklin Intelligent Machines ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. IQM delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | IQM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.05% | |
| AUM | $88M | $158.1B | |
| Dividend Yield | 0.00% | 2.59% | |
| Holdings | 80 | 8,747 | |
| YTD Return | +16.03% | +15.57% | |
| 1Y Return | +31.63% | +27.46% | |
| 3Y Return (annualized) | +29.59% | +20.30% | |
| 5Y Return (annualized) | +15.02% | +8.96% | |
| Volatility (annualized) | 28.4% | 15.0% | |
| Max Drawdown | -44.9% | -39.9% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 25, 2020 | Jan 26, 2011 |
IQM vs VXUS Performance
Franklin Intelligent Machines ETF (IQM) is a ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IQM returned +31.63% while VXUS returned +27.46%. Year to date, IQM is up 16.03% versus a gain of 15.57% for VXUS.
Over three years, IQM compounded at +29.59% per year against +20.30% for VXUS; over five years the annualized figures are +15.02% and +8.96% respectively. Across the full 7-year window we track, IQM has the edge at +24.92% annualized vs +4.90%. 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 15.0% 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 -39.9% for VXUS. 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 0.71. 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 2.59% for VXUS.
Holdings Overlap
IQM and VXUS share 8 holdings out of 8164 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $45 per year of difference.
Which performed better, IQM or VXUS?
Over the past year IQM returned +31.63% vs +27.46% for VXUS, so IQM leads on 1-year performance. Over the longest common window we track (7 years), IQM annualized +24.92% vs +4.90% for VXUS. Past performance does not guarantee future results.
Which is riskier, IQM or VXUS?
IQM has been the more volatile fund at 28.4% annualized versus 15.0% for VXUS. Worst drawdown: IQM -44.9% vs VXUS -39.9%.
Should I hold both IQM and VXUS?
IQM and VXUS have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQM and VXUS?
IQM and VXUS share 8 common holdings with a 2.1% weight overlap. Combined, they hold 8164 unique securities.
Which pays a higher dividend, IQM or VXUS?
IQM yields 0.00% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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