IQM vs. FDL

Last updated Aug 4, 2026

IQM (Franklin Intelligent Machines ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - IQM is a Technology Equities fund actively managed by Franklin Templeton, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. IQM is actively managed, while FDL is passively managed. Over the past 5 years, IQM returned 15.99%/yr vs 14.10%/yr for FDL. Their 0.28 correlation means their historical movements had little consistent relationship. IQM charges 0.50%/yr vs 0.43%/yr for FDL.

Performance

IQM vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Intelligent Machines ETF (IQM) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with IQM having a 19.53% return and FDL slightly lower at 18.62%.

IQM

• 1D: 1.95%
• 1M: -6.41%
• 6M: 13.56%
• YTD: 19.53%
• 1Y: 34.87%
• 3Y*: 30.20%
• 5Y*: 15.99%
• 10Y*: —
• ALL TIME*: 25.29%

FDL

• 1D: 0.39%
• 1M: 3.67%
• 6M: 9.83%
• YTD: 18.62%
• 1Y: 28.15%
• 3Y*: 19.02%
• 5Y*: 14.10%
• 10Y*: 11.08%
• ALL TIME*: 8.96%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FDL First Trust Morningstar Dividend Leaders Index Fund	$51.38M	$49.50M	$43.21M
IQM Franklin Intelligent Machines ETF	$905.23K	$711.02K	$931.48K

IQM vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
IQM Franklin Intelligent Machines ETF	19.53%	30.76%	31.03%	41.06%	-33.36%	25.18%	76.92%
FDL First Trust Morningstar Dividend Leaders Index Fund	18.62%	14.79%	17.98%	2.94%	6.66%	26.10%	6.49%

Correlation

The correlation between IQM and FDL is -0.21, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.21
Correlation (3Y) Balances recent behavior with more history.	0.07
Correlation (5Y) Shows whether the relationship held over a longer period.	0.25
Correlation (All Time) Calculated using the full available price history since Feb 27, 2020	0.28

The correlation between IQM and FDL shifts across timeframes, from -0.21 (1 year) to 0.28 (all time), reflecting how their relationship changes across market environments.

IQM vs. FDL - Sectors Allocation Comparison

Sectors	IQM	FDL
Technology	70.5%	4.3%
Industrials	14.8%	3.6%
Utilities	3.5%	15.4%
Energy	3.1%	11.1%
Consumer Cyclical	2.7%	4.4%
Communication Services	1.1%	11.2%
Healthcare	1.0%	11.7%
Basic Materials	-	0.4%
Consumer Defensive	-	24.3%
Financial Services	-	13.7%
Real Estate	-	-

Return for Risk

IQM vs. FDL — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

IQM

IQM Risk / Return Rank: 39
IQM Sharpe Ratio Rank: 38
IQM Sortino Ratio Rank: 37
IQM Omega Ratio Rank: 38
IQM Calmar Ratio Rank: 38
IQM Martin Ratio Rank: 45

FDL

FDL Risk / Return Rank: 92
FDL Sharpe Ratio Rank: 91
FDL Sortino Ratio Rank: 93
FDL Omega Ratio Rank: 89
FDL Calmar Ratio Rank: 96
FDL Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IQM vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Intelligent Machines ETF (IQM) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.

	IQM	FDL	Difference
Sharpe ratio: Return per unit of total volatility	0.97	2.38	-1.41
Sortino ratio: Return per unit of downside risk	1.42	3.58	-2.17
Omega ratio: Gain probability vs. loss probability	1.19	1.42	-0.23
Calmar ratio: Return relative to maximum drawdown	1.39	6.62	-5.23
Martin ratio: Return relative to average drawdown	5.25	15.62	-10.37

IQM vs. FDL - Sharpe Ratio Comparison

The current IQM Sharpe Ratio is 0.97, which is lower than the FDL Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of IQM and FDL, 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

IQM vs. FDL - Drawdown Comparison

The maximum IQM drawdown since its inception was -44.91%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for IQM and FDL.

Drawdown Indicators

	IQM	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-44.91%	-65.93%	+21.02%
Max Drawdown (1Y) Largest decline over 1 year	-25.28%	-4.27%	-21.01%
Max Drawdown (3Y) Largest decline over 3 years	-30.42%	-12.24%	-18.18%
Max Drawdown (5Y) Largest decline over 5 years	-44.91%	-16.46%	-28.45%
Max Drawdown (10Y) Largest decline over 10 years	—	-41.40%	—
Current Drawdown Current decline from peak	-17.03%	-1.58%	-15.45%
Average Drawdown Average peak-to-trough decline	-12.20%	-9.59%	-2.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.66%	1.81%	+4.85%

Volatility

IQM vs. FDL - Volatility Comparison

Franklin Intelligent Machines ETF (IQM) has a higher volatility of 15.54% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 4.65%. This indicates that IQM's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQM	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.54%	4.65%	+10.89%
Volatility (6M) Calculated over the trailing 6-month period	31.13%	8.75%	+22.38%
Volatility (1Y) Calculated over the trailing 1-year period	36.17%	11.89%	+24.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.64%	14.44%	+16.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.69%	17.16%	+14.53%

IQM vs. FDL - Expense Ratio Comparison

IQM has a 0.50% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

IQM vs. FDL - Dividend Comparison

IQM has not paid dividends to shareholders, while FDL's dividend yield for the trailing twelve months is around 3.58%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.58%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
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 IQM and FDL in my portfolio?

IQM and FDL have a correlation of -0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IQM or FDL?

IQM has higher volatility (15.54%) compared to FDL (4.65%). In terms of maximum drawdown, IQM dropped -44.91% vs FDL's -65.93%.

Which ETF is better, IQM or FDL?

On 5-year performance, IQM leads with 15.99% vs 14.10% for FDL. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 4.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQM or FDL?

Over the 5-year period, IQM has performed better with a 15.99% return vs 14.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQM or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.50% for IQM.

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

FDL has the higher dividend yield at 3.58%, compared with 0.00% for IQM.

What is the main difference between IQM and FDL?

IQM is categorized as Technology Equities, while FDL is Large Cap Value Equities. They also come from different issuers: Franklin Templeton and First Trust. Their fees differ too: 0.50% for IQM and 0.43% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.38 vs 0.97), 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.