FDNI vs. IQM

Last updated Jun 4, 2026

FDNI (First Trust Dow Jones International Internet ETF) and IQM (Franklin Intelligent Machines ETF) are both Large Cap Growth Equities funds. FDNI is passively managed, while IQM is actively managed. Over the past 5 years, FDNI returned -8.73%/yr vs 22.22%/yr for IQM. A 0.57 correlation means they provide meaningful diversification when combined. FDNI charges 0.65%/yr vs 0.50%/yr for IQM.

Performance

FDNI vs. IQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dow Jones International Internet ETF (FDNI) 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, FDNI achieves a -18.16% return, which is significantly lower than IQM's 40.18% return.

FDNI

• 1D: -3.40%
• 1M: -1.01%
• YTD: -18.16%
• 6M: -18.40%
• 1Y: -12.94%
• 3Y*: 8.13%
• 5Y*: -8.73%
• 10Y*: —

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)

FDNI vs. IQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FDNI First Trust Dow Jones International Internet ETF	-18.16%	25.64%	22.46%	1.78%	-38.38%	-20.59%	85.42%
IQM Franklin Intelligent Machines ETF	40.18%	30.76%	31.03%	41.06%	-33.36%	25.18%	78.48%

Correlation

The correlation between FDNI and IQM is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (All Time) Calculated using the full available price history since Feb 28, 2020	0.57

The correlation between FDNI and IQM has been stable across timeframes, ranging from 0.51 to 0.57 - a consistent structural relationship.

FDNI vs. IQM - Sectors Allocation Comparison

Sectors	FDNI	IQM
Consumer Cyclical	43.5%	4.1%
Communication Services	34.7%	2.1%
Technology	17.2%	65.9%
Financial Services	3.9%	-
Real Estate	0.7%	-
Healthcare	0.7%	1.1%
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	2.7%
Industrials	-	19.9%
Utilities	-	3.3%

Return for Risk

FDNI vs. IQM — Risk / Return Rank

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

FDNI

FDNI Risk / Return Rank: 5
FDNI Sharpe Ratio Rank: 4
FDNI Sortino Ratio Rank: 4
FDNI Omega Ratio Rank: 4
FDNI Calmar Ratio Rank: 5
FDNI Martin Ratio Rank: 5

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.

FDNI vs. IQM - Risk-Adjusted Trends Comparison

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

	FDNI	IQM	Difference
Sharpe ratio: Return per unit of total volatility	-0.54	2.67	-3.21
Sortino ratio: Return per unit of downside risk	-0.63	3.11	-3.74
Omega ratio: Gain probability vs. loss probability	0.93	1.43	-0.50
Calmar ratio: Return relative to maximum drawdown	-0.39	5.13	-5.52
Martin ratio: Return relative to average drawdown	-0.75	16.79	-17.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FDNI vs. IQM - Sharpe Ratio Comparison

The current FDNI 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 FDNI 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

	FDNI	IQM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.54	2.67	-3.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.24	0.77	-1.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.15	0.96	-0.81

Drawdowns

FDNI vs. IQM - Drawdown Comparison

The maximum FDNI drawdown since its inception was -71.08%, which is greater than IQM's maximum drawdown of -44.91%. Use the drawdown chart below to compare losses from any high point for FDNI and IQM.

Drawdown Indicators

	FDNI	IQM	Difference
Max Drawdown Largest peak-to-trough decline	-71.08%	-44.91%	-26.17%
Max Drawdown (1Y) Largest decline over 1 year	-33.22%	-14.71%	-18.51%
Max Drawdown (3Y) Largest decline over 3 years	-33.22%	-30.42%	-2.80%
Max Drawdown (5Y) Largest decline over 5 years	-65.86%	-44.91%	-20.95%
Current Drawdown Current decline from peak	-49.38%	-0.37%	-49.01%
Average Drawdown Average peak-to-trough decline	-34.55%	-12.25%	-22.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.27%	4.49%	+12.78%

Volatility

FDNI vs. IQM - Volatility Comparison

The current volatility for First Trust Dow Jones International Internet ETF (FDNI) is 7.96%, while Franklin Intelligent Machines ETF (IQM) has a volatility of 9.20%. This indicates that FDNI 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

	FDNI	IQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.96%	9.20%	-1.24%
Volatility (6M) Calculated over the trailing 6-month period	18.80%	22.92%	-4.12%
Volatility (1Y) Calculated over the trailing 1-year period	23.95%	28.27%	-4.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.63%	28.91%	+7.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.57%	30.72%	+3.85%

FDNI vs. IQM - Expense Ratio Comparison

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

Dividends

FDNI vs. IQM - Dividend Comparison

FDNI's dividend yield for the trailing twelve months is around 1.36%, while IQM has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
FDNI First Trust Dow Jones International Internet ETF	1.36%	1.12%	1.07%	0.40%	0.00%	0.00%	0.16%	3.12%
IQM Franklin Intelligent Machines ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.17%	0.01%	0.00%

Frequently Asked Questions

Can I hold both FDNI and IQM in my portfolio?

FDNI and IQM have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDNI or IQM?

IQM has higher volatility (9.20%) compared to FDNI (7.96%). In terms of maximum drawdown, FDNI dropped -71.08% vs IQM's -44.91%.

Which ETF is better, FDNI or IQM?

On 5-year performance, IQM leads with 22.22% vs -8.73% for FDNI. On fees, IQM is cheaper at 0.50% per year. On volatility, FDNI has been the lower-risk option at 7.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDNI or IQM?

Over the 5-year period, IQM has performed better with a 22.22% return vs -8.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDNI or IQM?

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

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

FDNI has the higher dividend yield at 1.36%, compared with 0.00% for IQM.

What is the main difference between FDNI and IQM?

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