AFGR vs. IQM

Last updated Jun 13, 2026

AFGR (First Trust Active Factor Large Cap Growth ETF) and IQM (Franklin Intelligent Machines ETF) are both Large Cap Growth Equities funds. Both are actively managed. Over the past 5 years, AFGR returned 7.22%/yr vs 20.67%/yr for IQM. Their correlation of 0.89 suggests significant overlap in exposure. AFGR charges 0.65%/yr vs 0.50%/yr for IQM.

Performance

AFGR vs. IQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Active Factor Large Cap Growth ETF (AFGR) and Franklin Intelligent Machines ETF (IQM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AFGR achieves a 1.90% return, which is significantly lower than IQM's 33.73% return.

AFGR

• 1D: 0.27%
• 1M: 0.10%
• YTD: 1.90%
• 6M: 1.80%
• 1Y: 12.07%
• 3Y*: 19.38%
• 5Y*: 7.22%
• 10Y*: —

IQM

• 1D: 1.38%
• 1M: 2.11%
• YTD: 33.73%
• 6M: 33.78%
• 1Y: 65.16%
• 3Y*: 33.90%
• 5Y*: 20.67%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

AFGR vs. IQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
AFGR First Trust Active Factor Large Cap Growth ETF	1.90%	17.28%	25.96%	45.21%	-39.18%	13.23%	21.39%
IQM Franklin Intelligent Machines ETF	33.73%	30.76%	31.03%	41.06%	-33.36%	25.18%	40.12%

Correlation

The correlation between AFGR and IQM is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jul 22, 2020	0.89

The correlation between AFGR and IQM shifts across timeframes, from 0.78 (1 year) to 0.89 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

AFGR vs. IQM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AFGR

AFGR Risk / Return Rank: 19
AFGR Sharpe Ratio Rank: 21
AFGR Sortino Ratio Rank: 20
AFGR Omega Ratio Rank: 20
AFGR Calmar Ratio Rank: 17
AFGR Martin Ratio Rank: 18

IQM

IQM Risk / Return Rank: 76
IQM Sharpe Ratio Rank: 78
IQM Sortino Ratio Rank: 64
IQM Omega Ratio Rank: 70
IQM Calmar Ratio Rank: 88
IQM Martin Ratio Rank: 81

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AFGR vs. IQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Active Factor Large Cap Growth ETF (AFGR) and Franklin Intelligent Machines ETF (IQM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AFGR	IQM	Difference
Sharpe ratio: Return per unit of total volatility	0.65	2.16	-1.51
Sortino ratio: Return per unit of downside risk	0.99	2.59	-1.60
Omega ratio: Gain probability vs. loss probability	1.12	1.36	-0.24
Calmar ratio: Return relative to maximum drawdown	0.61	4.45	-3.84
Martin ratio: Return relative to average drawdown	1.74	14.01	-12.27

AFGR vs. IQM - Sharpe Ratio Comparison

The current AFGR Sharpe Ratio is 0.65, which is lower than the IQM Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of AFGR and IQM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AFGR vs. IQM - Drawdown Comparison

The maximum AFGR drawdown since its inception was -45.97%, roughly equal to the maximum IQM drawdown of -44.91%. Use the drawdown chart below to compare losses from any high point for AFGR and IQM.

Drawdown Indicators

	AFGR	IQM	Difference
Max Drawdown Largest peak-to-trough decline	-45.97%	-44.91%	-1.06%
Max Drawdown (1Y) Largest decline over 1 year	-19.89%	-14.71%	-5.18%
Max Drawdown (3Y) Largest decline over 3 years	-26.57%	-30.42%	+3.85%
Max Drawdown (5Y) Largest decline over 5 years	-45.97%	-44.91%	-1.06%
Current Drawdown Current decline from peak	-4.84%	-4.96%	+0.12%
Average Drawdown Average peak-to-trough decline	-14.30%	-12.22%	-2.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.94%	4.67%	+2.27%

Volatility

AFGR vs. IQM - Volatility Comparison

The current volatility for First Trust Active Factor Large Cap Growth ETF (AFGR) is 5.45%, while Franklin Intelligent Machines ETF (IQM) has a volatility of 13.68%. This indicates that AFGR experiences smaller price fluctuations and is considered to be less risky than IQM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AFGR	IQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.45%	13.68%	-8.23%
Volatility (6M) Calculated over the trailing 6-month period	14.45%	25.43%	-10.98%
Volatility (1Y) Calculated over the trailing 1-year period	18.53%	30.25%	-11.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.97%	29.29%	-4.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.52%	30.95%	-6.43%

AFGR vs. IQM - Expense Ratio Comparison

AFGR has a 0.65% expense ratio, which is higher than IQM's 0.50% expense ratio.

Dividends

AFGR vs. IQM - Dividend Comparison

Neither AFGR nor IQM has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020
AFGR First Trust Active Factor Large Cap Growth ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.25%
IQM Franklin Intelligent Machines ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.17%	0.01%

Frequently Asked Questions

Can I hold both AFGR and IQM in my portfolio?

AFGR and IQM have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AFGR or IQM?

IQM has higher volatility (13.68%) compared to AFGR (5.45%). In terms of maximum drawdown, AFGR dropped -45.97% vs IQM's -44.91%.

Which ETF is better, AFGR or IQM?

On 5-year performance, IQM leads with 20.67% vs 7.22% for AFGR. On fees, IQM is cheaper at 0.50% per year. On volatility, AFGR has been the lower-risk option at 5.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AFGR or IQM?

Over the 5-year period, IQM has performed better with a 20.67% return vs 7.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AFGR or IQM?

IQM is cheaper with a 0.50% expense ratio, compared with 0.65% for AFGR.

Which ETF pays a higher dividend yield, AFGR or IQM?

AFGR and IQM have nearly identical dividend yields, around 0.00%.

What is the main difference between AFGR and IQM?

They also come from different issuers: First Trust and Franklin Templeton. Their fees differ too: 0.65% for AFGR and 0.50% for IQM.

Which has better risk-adjusted returns?

IQM currently has the higher Sharpe Ratio (2.16 vs 0.65), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.