FFTY vs. IQM

Last updated Jun 24, 2026

FFTY (Innovator IBD 50 ETF) and IQM (Franklin Intelligent Machines ETF) are both Large Cap Growth Equities funds. FFTY is passively managed, while IQM is actively managed. Over the past 5 years, FFTY returned -0.44%/yr vs 20.13%/yr for IQM. Their correlation of 0.81 suggests significant overlap in exposure. FFTY charges 0.80%/yr vs 0.50%/yr for IQM.

Performance

FFTY vs. IQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator IBD 50 ETF (FFTY) 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, FFTY achieves a 20.94% return, which is significantly lower than IQM's 35.15% return.

FFTY

• 1D: -4.21%
• 1M: 5.39%
• YTD: 20.94%
• 6M: 18.21%
• 1Y: 36.43%
• 3Y*: 21.26%
• 5Y*: -0.44%
• 10Y*: 7.91%

IQM

• 1D: -6.20%
• 1M: 3.59%
• YTD: 35.15%
• 6M: 31.71%
• 1Y: 66.07%
• 3Y*: 35.52%
• 5Y*: 20.13%
• 10Y*: —

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

FFTY vs. IQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FFTY Innovator IBD 50 ETF	20.94%	23.38%	18.36%	12.40%	-51.08%	11.92%	22.03%
IQM Franklin Intelligent Machines ETF	35.15%	30.76%	31.03%	41.06%	-33.36%	25.18%	76.92%

Correlation

The correlation between FFTY and IQM is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (All Time) Calculated using the full available price history since Feb 27, 2020	0.81

The correlation between FFTY and IQM has been stable across timeframes, ranging from 0.80 to 0.81 - a consistent structural relationship.

FFTY vs. IQM - Sectors Allocation Comparison

Sectors	FFTY	IQM
Technology	39.4%	68.4%
Industrials	23.1%	17.1%
Healthcare	12.8%	1.0%
Energy	7.3%	2.3%
Financial Services	6.7%	-
Basic Materials	2.9%	-
Communication Services	2.8%	2.3%
Consumer Defensive	2.8%	-
Consumer Cyclical	2.3%	2.9%
Utilities	2.1%	3.2%
Real Estate	-	-

Return for Risk

FFTY vs. IQM — Risk / Return Rank

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

FFTY

FFTY Risk / Return Rank: 30
FFTY Sharpe Ratio Rank: 29
FFTY Sortino Ratio Rank: 27
FFTY Omega Ratio Rank: 29
FFTY Calmar Ratio Rank: 33
FFTY Martin Ratio Rank: 30

IQM

IQM Risk / Return Rank: 70
IQM Sharpe Ratio Rank: 69
IQM Sortino Ratio Rank: 55
IQM Omega Ratio Rank: 61
IQM Calmar Ratio Rank: 86
IQM Martin Ratio Rank: 77

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.

FFTY vs. IQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator IBD 50 ETF (FFTY) 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.

	FFTY	IQM	Difference
Sharpe ratio: Return per unit of total volatility	1.02	2.11	-1.09
Sortino ratio: Return per unit of downside risk	1.44	2.52	-1.08
Omega ratio: Gain probability vs. loss probability	1.19	1.35	-0.16
Calmar ratio: Return relative to maximum drawdown	1.57	4.52	-2.94
Martin ratio: Return relative to average drawdown	4.14	14.13	-9.98

FFTY vs. IQM - Sharpe Ratio Comparison

The current FFTY Sharpe Ratio is 1.02, which is lower than the IQM Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of FFTY 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

FFTY vs. IQM - Drawdown Comparison

The maximum FFTY drawdown since its inception was -59.46%, which is greater than IQM's maximum drawdown of -44.91%. Use the drawdown chart below to compare losses from any high point for FFTY and IQM.

Drawdown Indicators

	FFTY	IQM	Difference
Max Drawdown Largest peak-to-trough decline	-59.46%	-44.91%	-14.55%
Max Drawdown (1Y) Largest decline over 1 year	-23.29%	-14.71%	-8.58%
Max Drawdown (3Y) Largest decline over 3 years	-29.60%	-30.42%	+0.82%
Max Drawdown (5Y) Largest decline over 5 years	-59.46%	-44.91%	-14.55%
Max Drawdown (10Y) Largest decline over 10 years	-59.46%	—	—
Current Drawdown Current decline from peak	-14.76%	-6.20%	-8.56%
Average Drawdown Average peak-to-trough decline	-22.34%	-12.18%	-10.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.82%	4.69%	+4.13%

Volatility

FFTY vs. IQM - Volatility Comparison

The current volatility for Innovator IBD 50 ETF (FFTY) is 13.44%, while Franklin Intelligent Machines ETF (IQM) has a volatility of 15.34%. This indicates that FFTY 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

	FFTY	IQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.44%	15.34%	-1.90%
Volatility (6M) Calculated over the trailing 6-month period	28.50%	26.16%	+2.34%
Volatility (1Y) Calculated over the trailing 1-year period	35.99%	31.47%	+4.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.63%	29.56%	+0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.67%	31.10%	-3.43%

FFTY vs. IQM - Expense Ratio Comparison

FFTY has a 0.80% expense ratio, which is higher than IQM's 0.50% expense ratio.

Dividends

FFTY vs. IQM - Dividend Comparison

FFTY's dividend yield for the trailing twelve months is around 1.11%, while IQM has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FFTY Innovator IBD 50 ETF	1.11%	1.35%	0.91%	0.65%	2.75%	0.22%	0.00%	0.00%	0.00%	0.17%
IQM Franklin Intelligent Machines ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.17%	0.01%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FFTY and IQM in my portfolio?

FFTY and IQM have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FFTY or IQM?

IQM has higher volatility (15.34%) compared to FFTY (13.44%). In terms of maximum drawdown, FFTY dropped -59.46% vs IQM's -44.91%.

Which ETF is better, FFTY or IQM?

On 5-year performance, IQM leads with 20.13% vs -0.44% for FFTY. On fees, IQM is cheaper at 0.50% per year. On volatility, FFTY has been the lower-risk option at 13.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FFTY or IQM?

Over the 5-year period, IQM has performed better with a 20.13% return vs -0.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FFTY or IQM?

IQM is cheaper with a 0.50% expense ratio, compared with 0.80% for FFTY.

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

FFTY has the higher dividend yield at 1.11%, compared with 0.00% for IQM.

What is the main difference between FFTY and IQM?

They also come from different issuers: Innovator and Franklin Templeton. Their fees differ too: 0.80% for FFTY and 0.50% for IQM.

Which has better risk-adjusted returns?

IQM currently has the higher Sharpe Ratio (2.11 vs 1.02), 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.