IGM vs. IQM

Last updated Jun 4, 2026

IGM (iShares Expanded Tech Sector ETF) and IQM (Franklin Intelligent Machines ETF) are both exchange-traded funds - IGM is a Technology Equities fund tracking the S&P North American Technology Sector Index, while IQM is a Large Cap Growth Equities fund actively managed by Franklin Templeton. IGM is passively managed, while IQM is actively managed. Over the past 5 years, IGM returned 22.04%/yr vs 22.22%/yr for IQM. Their correlation of 0.90 suggests significant overlap in exposure. IGM charges 0.46%/yr vs 0.50%/yr for IQM.

Performance

IGM vs. IQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Expanded Tech Sector ETF (IGM) 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, IGM achieves a 31.32% return, which is significantly lower than IQM's 40.18% return.

IGM

• 1D: -0.84%
• 1M: 16.93%
• YTD: 31.32%
• 6M: 29.19%
• 1Y: 62.26%
• 3Y*: 39.18%
• 5Y*: 22.04%
• 10Y*: 25.19%

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)

IGM vs. IQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
IGM iShares Expanded Tech Sector ETF	31.32%	26.76%	36.99%	60.68%	-35.83%	25.72%	50.73%
IQM Franklin Intelligent Machines ETF	40.18%	30.76%	31.03%	41.06%	-33.36%	25.18%	78.48%

Correlation

The correlation between IGM and IQM is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (All Time) Calculated using the full available price history since Feb 28, 2020	0.90

The correlation between IGM and IQM has been stable across timeframes, ranging from 0.86 to 0.92 - a consistent structural relationship.

IGM vs. IQM - Sectors Allocation Comparison

Sectors	IGM	IQM
Technology	82.8%	65.9%
Communication Services	16.8%	2.1%
Financial Services	0.2%	-
Industrials	0.2%	19.9%
Energy	0.1%	2.7%
Consumer Cyclical	0.1%	4.1%
Basic Materials	-	-
Consumer Defensive	-	-
Healthcare	-	1.1%
Real Estate	-	-
Utilities	-	3.3%

Return for Risk

IGM vs. IQM — Risk / Return Rank

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

IGM

IGM Risk / Return Rank: 79
IGM Sharpe Ratio Rank: 89
IGM Sortino Ratio Rank: 83
IGM Omega Ratio Rank: 81
IGM Calmar Ratio Rank: 74
IGM Martin Ratio Rank: 70

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.

IGM vs. IQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Expanded Tech Sector ETF (IGM) 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.

	IGM	IQM	Difference
Sharpe ratio: Return per unit of total volatility	3.07	2.67	+0.39
Sortino ratio: Return per unit of downside risk	3.78	3.11	+0.67
Omega ratio: Gain probability vs. loss probability	1.50	1.43	+0.07
Calmar ratio: Return relative to maximum drawdown	3.81	5.13	-1.33
Martin ratio: Return relative to average drawdown	13.36	16.79	-3.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IGM vs. IQM - Sharpe Ratio Comparison

The current IGM Sharpe Ratio is 3.07, which is comparable to the IQM Sharpe Ratio of 2.67. The chart below compares the historical Sharpe Ratios of IGM 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

	IGM	IQM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.07	2.67	+0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.86	0.77	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.03	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.96	-0.48

Drawdowns

IGM vs. IQM - Drawdown Comparison

The maximum IGM drawdown since its inception was -65.59%, which is greater than IQM's maximum drawdown of -44.91%. Use the drawdown chart below to compare losses from any high point for IGM and IQM.

Drawdown Indicators

	IGM	IQM	Difference
Max Drawdown Largest peak-to-trough decline	-65.59%	-44.91%	-20.68%
Max Drawdown (1Y) Largest decline over 1 year	-16.44%	-14.71%	-1.73%
Max Drawdown (3Y) Largest decline over 3 years	-26.39%	-30.42%	+4.03%
Max Drawdown (5Y) Largest decline over 5 years	-40.68%	-44.91%	+4.23%
Max Drawdown (10Y) Largest decline over 10 years	-40.68%	—	—
Current Drawdown Current decline from peak	-0.84%	-0.37%	-0.47%
Average Drawdown Average peak-to-trough decline	-15.23%	-12.25%	-2.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.67%	4.49%	+0.18%

Volatility

IGM vs. IQM - Volatility Comparison

The current volatility for iShares Expanded Tech Sector ETF (IGM) is 6.10%, while Franklin Intelligent Machines ETF (IQM) has a volatility of 9.20%. This indicates that IGM 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

	IGM	IQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.10%	9.20%	-3.10%
Volatility (6M) Calculated over the trailing 6-month period	16.08%	22.92%	-6.84%
Volatility (1Y) Calculated over the trailing 1-year period	20.43%	28.27%	-7.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.68%	28.91%	-3.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.54%	30.72%	-6.18%

IGM vs. IQM - Expense Ratio Comparison

IGM has a 0.46% expense ratio, which is lower than IQM's 0.50% expense ratio.

Dividends

IGM vs. IQM - Dividend Comparison

IGM's dividend yield for the trailing twelve months is around 0.12%, while IQM has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGM iShares Expanded Tech Sector ETF	0.12%	0.17%	0.22%	0.33%	0.66%	0.16%	0.32%	0.50%	0.57%	0.57%	0.90%	0.79%
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%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IGM and IQM in my portfolio?

IGM and IQM have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IGM or IQM?

IQM has higher volatility (9.20%) compared to IGM (6.10%). In terms of maximum drawdown, IGM dropped -65.59% vs IQM's -44.91%.

Which ETF is better, IGM or IQM?

On 5-year performance, IQM leads with 22.22% vs 22.04% for IGM. On fees, IGM is cheaper at 0.46% per year. On volatility, IGM has been the lower-risk option at 6.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGM or IQM?

Over the 5-year period, IQM has performed better with a 22.22% return vs 22.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGM or IQM?

IGM is cheaper with a 0.46% expense ratio, compared with 0.50% for IQM.

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

IGM has the higher dividend yield at 0.12%, compared with 0.00% for IQM.

What is the main difference between IGM and IQM?

IGM is categorized as Technology Equities, while IQM is Large Cap Growth Equities. They also come from different issuers: iShares and Franklin Templeton. Their fees differ too: 0.46% for IGM and 0.50% for IQM.

Which has better risk-adjusted returns?

IGM currently has the higher Sharpe Ratio (3.07 vs 2.67), 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.