IQSM vs. ESGB

Last updated Jun 25, 2026

IQSM (IQ Candriam U.S. Mid Cap Equity ETF) and ESGB (IQ MacKay ESG Core Plus Bond ETF) are both exchange-traded funds - IQSM is a Mid Cap Blend Equities fund tracking the IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net, while ESGB is a Intermediate Core-Plus Bond fund actively managed by IndexIQ. IQSM is passively managed, while ESGB is actively managed. At a 0.06 correlation, their price movements are largely independent. IQSM charges 0.15%/yr vs 0.39%/yr for ESGB.

Performance

IQSM vs. ESGB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ Candriam U.S. Mid Cap Equity ETF (IQSM) and IQ MacKay ESG Core Plus Bond ETF (ESGB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

IQSM

• 1D: 0.66%
• 1M: 2.66%
• YTD: 12.43%
• 6M: 10.24%
• 1Y: 22.29%
• 3Y*: 13.82%
• 5Y*: —
• 10Y*: —

ESGB

• 1D: 0.25%
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IQSM vs. ESGB - Yearly Performance Comparison

	2026 (YTD)
IQSM IQ Candriam U.S. Mid Cap Equity ETF	0.59%
ESGB IQ MacKay ESG Core Plus Bond ETF	-0.18%

Correlation

The correlation between IQSM and ESGB is 0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 4, 2026	0.06

Return for Risk

IQSM vs. ESGB — Risk / Return Rank

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

IQSM

IQSM Risk / Return Rank: 52
IQSM Sharpe Ratio Rank: 48
IQSM Sortino Ratio Rank: 49
IQSM Omega Ratio Rank: 44
IQSM Calmar Ratio Rank: 58
IQSM Martin Ratio Rank: 59

ESGB

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

IQSM vs. ESGB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ Candriam U.S. Mid Cap Equity ETF (IQSM) and IQ MacKay ESG Core Plus Bond ETF (ESGB). 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.

	IQSM	ESGB	Difference
Sharpe ratio: Return per unit of total volatility	1.47	—	—
Sortino ratio: Return per unit of downside risk	2.15	—	—
Omega ratio: Gain probability vs. loss probability	1.25	—	—
Calmar ratio: Return relative to maximum drawdown	2.53	—	—
Martin ratio: Return relative to average drawdown	9.21	—	—

Drawdowns

IQSM vs. ESGB - Drawdown Comparison

The maximum IQSM drawdown since its inception was -23.66%, which is greater than ESGB's maximum drawdown of -0.64%. Use the drawdown chart below to compare losses from any high point for IQSM and ESGB.

Drawdown Indicators

	IQSM	ESGB	Difference
Max Drawdown Largest peak-to-trough decline	-23.66%	-0.64%	-23.02%
Max Drawdown (1Y) Largest decline over 1 year	-8.86%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-23.66%	—	—
Current Drawdown Current decline from peak	-0.68%	-0.39%	-0.29%
Average Drawdown Average peak-to-trough decline	-4.80%	-0.38%	-4.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.43%	—	—

Volatility

Volatility by Period

	IQSM	ESGB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.34%	—	—
Volatility (6M) Calculated over the trailing 6-month period	11.44%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	15.24%	4.10%	+11.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.87%	4.10%	+13.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.87%	4.10%	+13.77%

IQSM vs. ESGB - Expense Ratio Comparison

IQSM has a 0.15% expense ratio, which is lower than ESGB's 0.39% expense ratio.

Dividends

IQSM vs. ESGB - Dividend Comparison

IQSM's dividend yield for the trailing twelve months is around 1.07%, while ESGB has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022
ESGB IQ MacKay ESG Core Plus Bond ETF	0.00%	0.00%	0.00%	0.00%	0.00%
IQSM IQ Candriam U.S. Mid Cap Equity ETF	1.07%	1.18%	1.22%	1.11%	0.32%

Frequently Asked Questions

Can I hold both IQSM and ESGB in my portfolio?

IQSM and ESGB have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, IQSM or ESGB?

On fees, IQSM is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, IQSM or ESGB?

IQSM is cheaper with a 0.15% expense ratio, compared with 0.39% for ESGB.

Which ETF pays a higher dividend yield, IQSM or ESGB?

IQSM has the higher dividend yield at 1.07%, compared with 0.00% for ESGB.

What is the main difference between IQSM and ESGB?

IQSM is categorized as Mid Cap Blend Equities, while ESGB is Intermediate Core-Plus Bond. Their fees differ too: 0.15% for IQSM and 0.39% for ESGB.