IQSI vs. MCSE

Last updated Aug 4, 2026

IQSI (IQ Candriam ESG International Equity ETF) and MCSE (Franklin Sustainable International Equity ETF) are both Foreign Large Cap Equities funds. IQSI is passively managed, while MCSE is actively managed. Over the past 3 years, IQSI returned 15.55%/yr vs 0.74%/yr for MCSE. Their 0.76 correlation means they have sometimes moved together and sometimes differently. IQSI charges 0.15%/yr vs 0.59%/yr for MCSE.

Performance

IQSI vs. MCSE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ Candriam ESG International Equity ETF (IQSI) and Franklin Sustainable International Equity ETF (MCSE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQSI achieves a 11.22% return, which is significantly higher than MCSE's 1.12% return.

IQSI

• 1D: 0.31%
• 1M: 0.32%
• 6M: 5.61%
• YTD: 11.22%
• 1Y: 22.43%
• 3Y*: 15.55%
• 5Y*: 8.09%
• 10Y*: —
• ALL TIME*: 9.55%

MCSE

• 1D: 0.00%
• 1M: 0.00%
• 6M: 0.00%
• YTD: 1.12%
• 1Y: 4.30%
• 3Y*: 0.74%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.06%

*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)
IQSI IQ Candriam ESG International Equity ETF	$66.39K	$361.19K	$950.83K
MCSE Franklin Sustainable International Equity ETF	$0.00	$0.00	$0.00

IQSI vs. MCSE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
IQSI IQ Candriam ESG International Equity ETF	11.22%	26.95%	4.84%	16.21%	9.95%
MCSE Franklin Sustainable International Equity ETF	1.12%	7.79%	-9.46%	14.86%	10.04%

Correlation

The correlation between IQSI and MCSE is 0.47, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.47
Correlation (3Y) Balances recent behavior with more history.	0.72
Correlation (All Time) Calculated using the full available price history since Oct 31, 2022	0.76

Over the past year, the correlation between IQSI and MCSE has dropped to 0.47 - well below their long-term average of 0.76, suggesting their price drivers have been diverging.

IQSI vs. MCSE - Sectors Allocation Comparison

Sectors	IQSI	MCSE
Financial Services	22.1%	2.1%
Technology	18.2%	31.1%
Industrials	16.4%	18.1%
Healthcare	13.1%	20.1%
Consumer Cyclical	7.3%	13.8%
Consumer Defensive	7.2%	5.0%
Basic Materials	4.9%	5.1%
Communication Services	4.3%	4.7%
Utilities	3.8%	-
Real Estate	2.4%	-
Energy	0.2%	-

Return for Risk

IQSI vs. MCSE — Risk / Return Rank

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

IQSI

IQSI Risk / Return Rank: 55
IQSI Sharpe Ratio Rank: 57
IQSI Sortino Ratio Rank: 56
IQSI Omega Ratio Rank: 55
IQSI Calmar Ratio Rank: 50
IQSI Martin Ratio Rank: 56

MCSE

MCSE Risk / Return Rank: 20
MCSE Sharpe Ratio Rank: 20
MCSE Sortino Ratio Rank: 19
MCSE Omega Ratio Rank: 24
MCSE Calmar Ratio Rank: 18
MCSE Martin Ratio Rank: 18

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.

IQSI vs. MCSE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ Candriam ESG International Equity ETF (IQSI) and Franklin Sustainable International Equity ETF (MCSE). 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.

	IQSI	MCSE	Difference
Sharpe ratio: Return per unit of total volatility	1.43	0.46	+0.97
Sortino ratio: Return per unit of downside risk	2.03	0.70	+1.33
Omega ratio: Gain probability vs. loss probability	1.25	1.12	+0.13
Calmar ratio: Return relative to maximum drawdown	1.88	0.45	+1.42
Martin ratio: Return relative to average drawdown	6.90	1.13	+5.77

IQSI vs. MCSE - Sharpe Ratio Comparison

The current IQSI Sharpe Ratio is 1.43, which is higher than the MCSE Sharpe Ratio of 0.46. The chart below compares the historical Sharpe Ratios of IQSI and MCSE, 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

IQSI vs. MCSE - Drawdown Comparison

The maximum IQSI drawdown since its inception was -31.90%, which is greater than MCSE's maximum drawdown of -26.36%. Use the drawdown chart below to compare losses from any high point for IQSI and MCSE.

Drawdown Indicators

	IQSI	MCSE	Difference
Max Drawdown Largest peak-to-trough decline	-31.90%	-26.36%	-5.54%
Max Drawdown (1Y) Largest decline over 1 year	-12.00%	-10.42%	-1.58%
Max Drawdown (3Y) Largest decline over 3 years	-14.02%	-26.36%	+12.34%
Max Drawdown (5Y) Largest decline over 5 years	-29.86%	—	—
Current Drawdown Current decline from peak	-0.65%	-10.51%	+9.86%
Average Drawdown Average peak-to-trough decline	-6.37%	-8.80%	+2.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.26%	4.37%	-1.11%

Volatility

IQSI vs. MCSE - Volatility Comparison

IQ Candriam ESG International Equity ETF (IQSI) has a higher volatility of 4.38% compared to Franklin Sustainable International Equity ETF (MCSE) at 0.00%. This indicates that IQSI's price experiences larger fluctuations and is considered to be riskier than MCSE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQSI	MCSE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.38%	0.00%	+4.38%
Volatility (6M) Calculated over the trailing 6-month period	13.61%	1.87%	+11.74%
Volatility (1Y) Calculated over the trailing 1-year period	15.83%	10.29%	+5.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.43%	19.07%	-2.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.94%	19.07%	-0.13%

IQSI vs. MCSE - Expense Ratio Comparison

IQSI has a 0.15% expense ratio, which is lower than MCSE's 0.59% expense ratio.

Dividends

IQSI vs. MCSE - Dividend Comparison

IQSI's dividend yield for the trailing twelve months is around 2.69%, less than MCSE's 3.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
IQSI IQ Candriam ESG International Equity ETF	2.69%	2.75%	2.79%	2.98%	2.89%	2.75%	1.65%
MCSE Franklin Sustainable International Equity ETF	3.74%	3.78%	0.63%	0.57%	0.48%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IQSI and MCSE in my portfolio?

IQSI and MCSE have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IQSI or MCSE?

IQSI has higher volatility (4.38%) compared to MCSE (0.00%). In terms of maximum drawdown, IQSI dropped -31.90% vs MCSE's -26.36%.

Which ETF is better, IQSI or MCSE?

On 3-year performance, IQSI leads with 15.55% vs 0.74% for MCSE. On fees, IQSI is cheaper at 0.15% per year. On volatility, MCSE has been the lower-risk option at 0.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQSI or MCSE?

Over the 3-year period, IQSI has performed better with a 15.55% return vs 0.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQSI or MCSE?

IQSI is cheaper with a 0.15% expense ratio, compared with 0.59% for MCSE.

Which ETF pays a higher dividend yield, IQSI or MCSE?

MCSE has the higher dividend yield at 3.74%, compared with 2.69% for IQSI.

What is the main difference between IQSI and MCSE?

They also come from different issuers: New York Life and Franklin. Their fees differ too: 0.15% for IQSI and 0.59% for MCSE.

Which has better risk-adjusted returns?

IQSI currently has the higher Sharpe Ratio (1.43 vs 0.46), 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.