IQM vs. XDAT

Last updated Jul 15, 2026

IQM (Franklin Intelligent Machines ETF) and XDAT (Franklin Exponential Data ETF) are both exchange-traded funds - IQM is a Large Cap Growth Equities fund actively managed by Franklin Templeton, while XDAT is a Technology Equities fund actively managed by Franklin Templeton. Both are actively managed. Over the past 5 years, IQM returned 18.79%/yr vs -0.62%/yr for XDAT. A 0.78 correlation means they provide meaningful diversification when combined. Both charge a 0.50% expense ratio.

Performance

IQM vs. XDAT - Performance Comparison

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

Returns By Period

In the year-to-date period, IQM achieves a 27.48% return, which is significantly higher than XDAT's -0.59% return.

IQM

• 1D: 2.19%
• 1M: -4.67%
• 6M: 16.81%
• YTD: 27.48%
• 1Y: 47.04%
• 3Y*: 30.36%
• 5Y*: 18.79%
• 10Y*: —

XDAT

• 1D: 2.00%
• 1M: 5.77%
• 6M: 0.15%
• YTD: -0.59%
• 1Y: -3.13%
• 3Y*: 9.78%
• 5Y*: -0.62%
• 10Y*: —

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

IQM vs. XDAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
IQM Franklin Intelligent Machines ETF	27.48%	30.76%	31.03%	41.06%	-33.36%	17.91%
XDAT Franklin Exponential Data ETF	-0.59%	1.87%	16.54%	45.77%	-45.71%	9.61%

Correlation

The correlation between IQM and XDAT is 0.55, 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	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jan 14, 2021	0.78

Over the past year, the correlation between IQM and XDAT has dropped to 0.55 - well below their long-term average of 0.78, suggesting their price drivers have been diverging.

IQM vs. XDAT - Sectors Allocation Comparison

Sectors	IQM	XDAT
Technology	67.6%	59.4%
Industrials	16.8%	0.2%
Utilities	3.4%	-
Consumer Cyclical	3.2%	1.2%
Energy	2.9%	-
Communication Services	2.1%	32.0%
Healthcare	1.0%	2.6%
Basic Materials	-	-
Consumer Defensive	-	-
Financial Services	-	2.4%
Real Estate	-	4.7%

Return for Risk

IQM vs. XDAT — Risk / Return Rank

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

IQM

IQM Risk / Return Rank: 57
IQM Sharpe Ratio Rank: 50
IQM Sortino Ratio Rank: 44
IQM Omega Ratio Rank: 47
IQM Calmar Ratio Rank: 78
IQM Martin Ratio Rank: 64

XDAT

XDAT Risk / Return Rank: 8
XDAT Sharpe Ratio Rank: 8
XDAT Sortino Ratio Rank: 8
XDAT Omega Ratio Rank: 8
XDAT Calmar Ratio Rank: 8
XDAT Martin Ratio Rank: 8

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. XDAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Intelligent Machines ETF (IQM) and Franklin Exponential Data ETF (XDAT). 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	XDAT	Difference
Sharpe ratio: Return per unit of total volatility	1.40	-0.13	+1.53
Sortino ratio: Return per unit of downside risk	1.82	-0.01	+1.83
Omega ratio: Gain probability vs. loss probability	1.25	1.00	+0.25
Calmar ratio: Return relative to maximum drawdown	3.21	-0.11	+3.32
Martin ratio: Return relative to average drawdown	9.10	-0.22	+9.32

IQM vs. XDAT - Sharpe Ratio Comparison

The current IQM Sharpe Ratio is 1.40, which is higher than the XDAT Sharpe Ratio of -0.13. The chart below compares the historical Sharpe Ratios of IQM and XDAT, 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. XDAT - Drawdown Comparison

The maximum IQM drawdown since its inception was -44.91%, smaller than the maximum XDAT drawdown of -54.87%. Use the drawdown chart below to compare losses from any high point for IQM and XDAT.

Drawdown Indicators

	IQM	XDAT	Difference
Max Drawdown Largest peak-to-trough decline	-44.91%	-54.87%	+9.96%
Max Drawdown (1Y) Largest decline over 1 year	-14.71%	-29.56%	+14.85%
Max Drawdown (3Y) Largest decline over 3 years	-30.42%	-29.56%	-0.86%
Max Drawdown (5Y) Largest decline over 5 years	-44.91%	-54.87%	+9.96%
Current Drawdown Current decline from peak	-11.52%	-16.83%	+5.31%
Average Drawdown Average peak-to-trough decline	-12.15%	-25.78%	+13.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.18%	14.51%	-9.33%

Volatility

IQM vs. XDAT - Volatility Comparison

Franklin Intelligent Machines ETF (IQM) has a higher volatility of 16.19% compared to Franklin Exponential Data ETF (XDAT) at 7.31%. This indicates that IQM's price experiences larger fluctuations and is considered to be riskier than XDAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQM	XDAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.19%	7.31%	+8.88%
Volatility (6M) Calculated over the trailing 6-month period	28.77%	20.64%	+8.13%
Volatility (1Y) Calculated over the trailing 1-year period	33.72%	24.63%	+9.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.10%	29.64%	+0.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.38%	29.39%	+1.99%

IQM vs. XDAT - Expense Ratio Comparison

Both IQM and XDAT have an expense ratio of 0.50%.

Dividends

IQM vs. XDAT - Dividend Comparison

Neither IQM nor XDAT has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020
IQM Franklin Intelligent Machines ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.17%	0.01%
XDAT Franklin Exponential Data ETF	0.00%	0.00%	0.13%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IQM and XDAT in my portfolio?

IQM and XDAT have a correlation of 0.55, 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 XDAT?

IQM has higher volatility (16.19%) compared to XDAT (7.31%). In terms of maximum drawdown, IQM dropped -44.91% vs XDAT's -54.87%.

Which ETF is better, IQM or XDAT?

On 5-year performance, IQM leads with 18.79% vs -0.62% for XDAT. Both ETFs have the same 0.50% expense ratio. On volatility, XDAT has been the lower-risk option at 7.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQM or XDAT?

Over the 5-year period, IQM has performed better with a 18.79% return vs -0.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQM or XDAT?

IQM and XDAT have the same expense ratio: 0.50% per year.

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

IQM and XDAT have nearly identical dividend yields, around 0.00%.

What is the main difference between IQM and XDAT?

IQM is categorized as Large Cap Growth Equities, while XDAT is Technology Equities.

Which has better risk-adjusted returns?

IQM currently has the higher Sharpe Ratio (1.40 vs -0.13), 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.