FDN vs. IQM

Last updated Jun 4, 2026

FDN (First Trust Dow Jones Internet Index) and IQM (Franklin Intelligent Machines ETF) are both Large Cap Growth Equities funds. FDN is passively managed, while IQM is actively managed. Over the past 5 years, FDN returned 4.24%/yr vs 22.22%/yr for IQM. A 0.79 correlation means they provide meaningful diversification when combined. FDN charges 0.52%/yr vs 0.50%/yr for IQM.

Performance

FDN vs. IQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dow Jones Internet Index (FDN) 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, FDN achieves a 4.18% return, which is significantly lower than IQM's 40.18% return.

FDN

• 1D: -1.90%
• 1M: 4.74%
• YTD: 4.18%
• 6M: 3.26%
• 1Y: 10.29%
• 3Y*: 20.67%
• 5Y*: 4.24%
• 10Y*: 14.37%

IQM

• 1D: -0.37%
• 1M: 11.94%
• YTD: 40.18%
• 6M: 38.57%
• 1Y: 75.07%
• 3Y*: 37.62%
• 5Y*: 22.22%
• 10Y*: —

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

FDN vs. IQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FDN First Trust Dow Jones Internet Index	4.18%	10.70%	30.35%	51.48%	-45.54%	6.55%	55.07%
IQM Franklin Intelligent Machines ETF	40.18%	30.76%	31.03%	41.06%	-33.36%	25.18%	78.48%

Correlation

The correlation between FDN and IQM is 0.55, 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	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (All Time) Calculated using the full available price history since Feb 28, 2020	0.79

Over the past year, the correlation between FDN and IQM has dropped to 0.55 - well below their long-term average of 0.79, suggesting their price drivers have been diverging.

FDN vs. IQM - Sectors Allocation Comparison

Sectors	FDN	IQM
Technology	37.7%	65.9%
Communication Services	29.7%	2.1%
Consumer Cyclical	27.7%	4.1%
Financial Services	2.4%	-
Industrials	1.4%	19.9%
Healthcare	1.1%	1.1%
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	2.7%
Real Estate	-	-
Utilities	-	3.3%

Return for Risk

FDN vs. IQM — Risk / Return Rank

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

FDN

FDN Risk / Return Rank: 16
FDN Sharpe Ratio Rank: 17
FDN Sortino Ratio Rank: 16
FDN Omega Ratio Rank: 17
FDN Calmar Ratio Rank: 15
FDN Martin Ratio Rank: 14

IQM

IQM Risk / Return Rank: 78
IQM Sharpe Ratio Rank: 81
IQM Sortino Ratio Rank: 66
IQM Omega Ratio Rank: 71
IQM Calmar Ratio Rank: 88
IQM Martin Ratio Rank: 83

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.

FDN vs. IQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Internet Index (FDN) 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.

	FDN	IQM	Difference
Sharpe ratio: Return per unit of total volatility	0.54	2.67	-2.13
Sortino ratio: Return per unit of downside risk	0.84	3.11	-2.26
Omega ratio: Gain probability vs. loss probability	1.10	1.43	-0.32
Calmar ratio: Return relative to maximum drawdown	0.49	5.13	-4.65
Martin ratio: Return relative to average drawdown	1.24	16.79	-15.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FDN vs. IQM - Sharpe Ratio Comparison

The current FDN Sharpe Ratio is 0.54, which is lower than the IQM Sharpe Ratio of 2.67. The chart below compares the historical Sharpe Ratios of FDN 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

	FDN	IQM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.54	2.67	-2.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.16	0.77	-0.62
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.55	0.96	-0.42

Drawdowns

FDN vs. IQM - Drawdown Comparison

The maximum FDN drawdown since its inception was -61.55%, which is greater than IQM's maximum drawdown of -44.91%. Use the drawdown chart below to compare losses from any high point for FDN and IQM.

Drawdown Indicators

	FDN	IQM	Difference
Max Drawdown Largest peak-to-trough decline	-61.55%	-44.91%	-16.64%
Max Drawdown (1Y) Largest decline over 1 year	-21.31%	-14.71%	-6.60%
Max Drawdown (3Y) Largest decline over 3 years	-24.98%	-30.42%	+5.44%
Max Drawdown (5Y) Largest decline over 5 years	-53.97%	-44.91%	-9.06%
Max Drawdown (10Y) Largest decline over 10 years	-53.97%	—	—
Current Drawdown Current decline from peak	-3.22%	-0.37%	-2.85%
Average Drawdown Average peak-to-trough decline	-11.82%	-12.25%	+0.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.35%	4.49%	+3.86%

Volatility

FDN vs. IQM - Volatility Comparison

The current volatility for First Trust Dow Jones Internet Index (FDN) is 5.14%, while Franklin Intelligent Machines ETF (IQM) has a volatility of 9.20%. This indicates that FDN 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

	FDN	IQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.14%	9.20%	-4.06%
Volatility (6M) Calculated over the trailing 6-month period	14.44%	22.92%	-8.48%
Volatility (1Y) Calculated over the trailing 1-year period	19.04%	28.27%	-9.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.25%	28.91%	-1.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.60%	30.72%	-5.12%

FDN vs. IQM - Expense Ratio Comparison

FDN has a 0.52% expense ratio, which is higher than IQM's 0.50% expense ratio.

Dividends

FDN vs. IQM - Dividend Comparison

Neither FDN nor IQM has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020
FDN First Trust Dow Jones Internet Index	0.00%	0.00%	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 FDN and IQM in my portfolio?

FDN and IQM have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDN or IQM?

IQM has higher volatility (9.20%) compared to FDN (5.14%). In terms of maximum drawdown, FDN dropped -61.55% vs IQM's -44.91%.

Which ETF is better, FDN or IQM?

On 5-year performance, IQM leads with 22.22% vs 4.24% for FDN. On fees, IQM is cheaper at 0.50% per year. On volatility, FDN has been the lower-risk option at 5.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDN or IQM?

Over the 5-year period, IQM has performed better with a 22.22% return vs 4.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDN or IQM?

IQM is cheaper with a 0.50% expense ratio, compared with 0.52% for FDN.

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

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

What is the main difference between FDN and IQM?

They also come from different issuers: First Trust and Franklin Templeton. Their fees differ too: 0.52% for FDN and 0.50% for IQM.

Which has better risk-adjusted returns?

IQM currently has the higher Sharpe Ratio (2.67 vs 0.54), 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.