DVQQ vs. IQM

Last updated Jun 5, 2026

DVQQ (WEBs QQQ Defined Volatility ETF) and IQM (Franklin Intelligent Machines ETF) are both Large Cap Growth Equities funds. DVQQ is passively managed, while IQM is actively managed. Over the past year, DVQQ returned 48.51% vs 72.20% for IQM. Their correlation of 0.84 suggests significant overlap in exposure. DVQQ charges 0.94%/yr vs 0.50%/yr for IQM.

Performance

DVQQ vs. IQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WEBs QQQ Defined Volatility ETF (DVQQ) 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, DVQQ achieves a 20.55% return, which is significantly lower than IQM's 38.49% return.

DVQQ

• 1D: -0.69%
• 1M: 11.94%
• YTD: 20.55%
• 6M: 17.68%
• 1Y: 48.51%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IQM

• 1D: -1.20%
• 1M: 9.28%
• YTD: 38.49%
• 6M: 34.62%
• 1Y: 72.20%
• 3Y*: 37.11%
• 5Y*: 21.93%
• 10Y*: —

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

DVQQ vs. IQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
DVQQ WEBs QQQ Defined Volatility ETF	20.55%	18.03%	-7.61%
IQM Franklin Intelligent Machines ETF	38.49%	30.76%	-4.41%

Correlation

The correlation between DVQQ and IQM is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (All Time) Calculated using the full available price history since Dec 18, 2024	0.84

The correlation between DVQQ and IQM has been stable across timeframes, ranging from 0.82 to 0.84 - a consistent structural relationship.

Return for Risk

DVQQ vs. IQM — Risk / Return Rank

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

DVQQ

DVQQ Risk / Return Rank: 58
DVQQ Sharpe Ratio Rank: 65
DVQQ Sortino Ratio Rank: 57
DVQQ Omega Ratio Rank: 59
DVQQ Calmar Ratio Rank: 56
DVQQ Martin Ratio Rank: 53

IQM

IQM Risk / Return Rank: 77
IQM Sharpe Ratio Rank: 80
IQM Sortino Ratio Rank: 67
IQM Omega Ratio Rank: 70
IQM Calmar Ratio Rank: 87
IQM Martin Ratio Rank: 82

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.

DVQQ vs. IQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WEBs QQQ Defined Volatility ETF (DVQQ) 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.

	DVQQ	IQM	Difference
Sharpe ratio: Return per unit of total volatility	2.13	2.57	-0.43
Sortino ratio: Return per unit of downside risk	2.67	3.01	-0.34
Omega ratio: Gain probability vs. loss probability	1.35	1.41	-0.06
Calmar ratio: Return relative to maximum drawdown	2.73	4.94	-2.21
Martin ratio: Return relative to average drawdown	8.96	16.15	-7.18
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DVQQ vs. IQM - Sharpe Ratio Comparison

The current DVQQ Sharpe Ratio is 2.13, which is comparable to the IQM Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of DVQQ 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.

Sharpe Ratios by Period

	DVQQ	IQM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.13	2.57	-0.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.76	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.86	0.95	-0.10

Drawdowns

DVQQ vs. IQM - Drawdown Comparison

The maximum DVQQ drawdown since its inception was -25.09%, smaller than the maximum IQM drawdown of -44.91%. Use the drawdown chart below to compare losses from any high point for DVQQ and IQM.

Drawdown Indicators

	DVQQ	IQM	Difference
Max Drawdown Largest peak-to-trough decline	-25.09%	-44.91%	+19.82%
Max Drawdown (1Y) Largest decline over 1 year	-17.89%	-14.71%	-3.18%
Max Drawdown (3Y) Largest decline over 3 years	—	-30.42%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-44.91%	—
Current Drawdown Current decline from peak	-1.05%	-1.57%	+0.52%
Average Drawdown Average peak-to-trough decline	-7.14%	-12.24%	+5.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.43%	4.49%	+0.94%

Volatility

DVQQ vs. IQM - Volatility Comparison

The current volatility for WEBs QQQ Defined Volatility ETF (DVQQ) is 6.30%, while Franklin Intelligent Machines ETF (IQM) has a volatility of 9.33%. This indicates that DVQQ 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

	DVQQ	IQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.30%	9.33%	-3.03%
Volatility (6M) Calculated over the trailing 6-month period	16.08%	22.97%	-6.89%
Volatility (1Y) Calculated over the trailing 1-year period	22.86%	28.28%	-5.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.34%	28.90%	-4.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.34%	30.71%	-6.37%

DVQQ vs. IQM - Expense Ratio Comparison

DVQQ has a 0.94% expense ratio, which is higher than IQM's 0.50% expense ratio.

Dividends

DVQQ vs. IQM - Dividend Comparison

DVQQ's dividend yield for the trailing twelve months is around 0.03%, while IQM has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020
DVQQ WEBs QQQ Defined Volatility ETF	0.03%	0.04%	0.00%	0.00%	0.00%	0.00%	0.00%
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 DVQQ and IQM in my portfolio?

DVQQ and IQM have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DVQQ or IQM?

IQM has higher volatility (9.33%) compared to DVQQ (6.30%). In terms of maximum drawdown, DVQQ dropped -25.09% vs IQM's -44.91%.

Which ETF is better, DVQQ or IQM?

On 1-year performance, IQM leads with 72.20% vs 48.51% for DVQQ. On fees, IQM is cheaper at 0.50% per year. On volatility, DVQQ has been the lower-risk option at 6.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DVQQ or IQM?

Over the 1-year period, IQM has performed better with a 72.20% return vs 48.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DVQQ or IQM?

IQM is cheaper with a 0.50% expense ratio, compared with 0.94% for DVQQ.

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

DVQQ has the higher dividend yield at 0.03%, compared with 0.00% for IQM.

What is the main difference between DVQQ and IQM?

They also come from different issuers: WEBs and Franklin Templeton. Their fees differ too: 0.94% for DVQQ and 0.50% for IQM.

Which has better risk-adjusted returns?

IQM currently has the higher Sharpe Ratio (2.57 vs 2.13), 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.