IQM vs. VGT

Last updated Jun 4, 2026

IQM (Franklin Intelligent Machines ETF) and VGT (Vanguard Information Technology ETF) are both exchange-traded funds - IQM is a Large Cap Growth Equities fund actively managed by Franklin Templeton, while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. IQM is actively managed, while VGT is passively managed. Over the past 5 years, IQM returned 22.22%/yr vs 22.23%/yr for VGT. Their correlation of 0.90 suggests significant overlap in exposure. IQM charges 0.50%/yr vs 0.09%/yr for VGT.

Performance

IQM vs. VGT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Intelligent Machines ETF (IQM) and Vanguard Information Technology ETF (VGT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQM achieves a 40.18% return, which is significantly higher than VGT's 31.64% return.

IQM

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

VGT

• 1D: -1.48%
• 1M: 18.07%
• YTD: 31.64%
• 6M: 30.51%
• 1Y: 60.15%
• 3Y*: 33.48%
• 5Y*: 22.23%
• 10Y*: 25.78%

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

IQM vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
IQM Franklin Intelligent Machines ETF	40.18%	30.76%	31.03%	41.06%	-33.36%	25.18%	78.48%
VGT Vanguard Information Technology ETF	31.64%	21.77%	29.30%	52.66%	-29.70%	30.45%	53.08%

Correlation

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

IQM vs. VGT - Sectors Allocation Comparison

Sectors	IQM	VGT
Technology	65.9%	98.5%
Industrials	19.9%	0.4%
Consumer Cyclical	4.1%	0.1%
Utilities	3.3%	-
Energy	2.7%	0.3%
Communication Services	2.1%	0.5%
Healthcare	1.1%	0.0%
Basic Materials	-	0.0%
Consumer Defensive	-	-
Financial Services	-	0.5%
Real Estate	-	-

Return for Risk

IQM vs. VGT — Risk / Return Rank

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

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

VGT

VGT Risk / Return Rank: 76
VGT Sharpe Ratio Rank: 87
VGT Sortino Ratio Rank: 79
VGT Omega Ratio Rank: 78
VGT Calmar Ratio Rank: 72
VGT Martin Ratio Rank: 64

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.

IQM vs. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Intelligent Machines ETF (IQM) and Vanguard Information Technology ETF (VGT). 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.

	IQM	VGT	Difference
Sharpe ratio: Return per unit of total volatility	2.67	2.95	-0.27
Sortino ratio: Return per unit of downside risk	3.11	3.63	-0.52
Omega ratio: Gain probability vs. loss probability	1.43	1.47	-0.05
Calmar ratio: Return relative to maximum drawdown	5.13	3.69	+1.44
Martin ratio: Return relative to average drawdown	16.79	11.77	+5.02
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IQM vs. VGT - Sharpe Ratio Comparison

The current IQM Sharpe Ratio is 2.67, which is comparable to the VGT Sharpe Ratio of 2.95. The chart below compares the historical Sharpe Ratios of IQM and VGT, 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

	IQM	VGT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.67	2.95	-0.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.77	0.89	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.96	0.68	+0.28

Drawdowns

IQM vs. VGT - Drawdown Comparison

The maximum IQM drawdown since its inception was -44.91%, smaller than the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for IQM and VGT.

Drawdown Indicators

	IQM	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-44.91%	-54.63%	+9.72%
Max Drawdown (1Y) Largest decline over 1 year	-14.71%	-16.40%	+1.69%
Max Drawdown (3Y) Largest decline over 3 years	-30.42%	-27.23%	-3.19%
Max Drawdown (5Y) Largest decline over 5 years	-44.91%	-35.07%	-9.84%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.07%	—
Current Drawdown Current decline from peak	-0.37%	-1.48%	+1.11%
Average Drawdown Average peak-to-trough decline	-12.25%	-7.95%	-4.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.49%	5.13%	-0.64%

Volatility

IQM vs. VGT - Volatility Comparison

Franklin Intelligent Machines ETF (IQM) has a higher volatility of 9.20% compared to Vanguard Information Technology ETF (VGT) at 6.39%. This indicates that IQM's price experiences larger fluctuations and is considered to be riskier than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQM	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.20%	6.39%	+2.81%
Volatility (6M) Calculated over the trailing 6-month period	22.92%	16.07%	+6.85%
Volatility (1Y) Calculated over the trailing 1-year period	28.27%	20.57%	+7.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.91%	25.18%	+3.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.72%	24.60%	+6.12%

IQM vs. VGT - Expense Ratio Comparison

IQM has a 0.50% expense ratio, which is higher than VGT's 0.09% expense ratio.

Dividends

IQM vs. VGT - Dividend Comparison

IQM has not paid dividends to shareholders, while VGT's dividend yield for the trailing twelve months is around 0.31%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VGT Vanguard Information Technology ETF	0.31%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%

Frequently Asked Questions

Can I hold both IQM and VGT in my portfolio?

IQM and VGT 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, IQM or VGT?

IQM has higher volatility (9.20%) compared to VGT (6.39%). In terms of maximum drawdown, IQM dropped -44.91% vs VGT's -54.63%.

Which ETF is better, IQM or VGT?

On 5-year performance, VGT leads with 22.23% vs 22.22% for IQM. On fees, VGT is cheaper at 0.09% per year. On volatility, VGT has been the lower-risk option at 6.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQM or VGT?

Over the 5-year period, VGT has performed better with a 22.23% return vs 22.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQM or VGT?

VGT is cheaper with a 0.09% expense ratio, compared with 0.50% for IQM.

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

VGT has the higher dividend yield at 0.31%, compared with 0.00% for IQM.

What is the main difference between IQM and VGT?

IQM is categorized as Large Cap Growth Equities, while VGT is Technology Equities. They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.50% for IQM and 0.09% for VGT.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (2.95 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.