IQSM vs. ESGB

Last updated Jun 5, 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. Over the past 3 years, IQSM returned 14.32%/yr vs 5.59%/yr for ESGB. At a 0.24 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

In the year-to-date period, IQSM achieves a 12.42% return, which is significantly higher than ESGB's 0.74% return.

IQSM

• 1D: 0.58%
• 1M: 3.67%
• YTD: 12.42%
• 6M: 12.70%
• 1Y: 23.39%
• 3Y*: 14.32%
• 5Y*: —
• 10Y*: —

ESGB

• 1D: 0.24%
• 1M: 0.21%
• YTD: 0.74%
• 6M: 0.94%
• 1Y: 5.08%
• 3Y*: 5.59%
• 5Y*: —
• 10Y*: —

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

IQSM vs. ESGB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
IQSM IQ Candriam U.S. Mid Cap Equity ETF	12.42%	7.97%	9.15%	15.82%	2.29%
ESGB IQ MacKay ESG Core Plus Bond ETF	0.74%	7.76%	4.19%	7.16%	3.38%

Correlation

The correlation between IQSM and ESGB is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (All Time) Calculated using the full available price history since Oct 26, 2022	0.24

The correlation between IQSM and ESGB shifts across timeframes, from 0.24 (all time) to 0.39 (1 year), reflecting how their relationship changes across market environments.

IQSM vs. ESGB - Sectors Allocation Comparison

Sectors	IQSM	ESGB
Industrials	23.1%	-
Technology	15.5%	-
Healthcare	14.2%	0.0%
Financial Services	12.4%	0.2%
Consumer Cyclical	10.2%	-
Real Estate	10.0%	-
Consumer Defensive	4.6%	-
Basic Materials	4.1%	-
Energy	2.6%	-
Communication Services	2.6%	-
Utilities	0.6%	-

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: 49
IQSM Sharpe Ratio Rank: 45
IQSM Sortino Ratio Rank: 47
IQSM Omega Ratio Rank: 43
IQSM Calmar Ratio Rank: 54
IQSM Martin Ratio Rank: 56

ESGB

ESGB Risk / Return Rank: 39
ESGB Sharpe Ratio Rank: 39
ESGB Sortino Ratio Rank: 40
ESGB Omega Ratio Rank: 38
ESGB Calmar Ratio Rank: 40
ESGB Martin Ratio Rank: 38

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.

	IQSM	ESGB	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.37	+0.20
Sortino ratio: Return per unit of downside risk	2.29	2.00	+0.28
Omega ratio: Gain probability vs. loss probability	1.27	1.24	+0.03
Calmar ratio: Return relative to maximum drawdown	2.65	1.96	+0.69
Martin ratio: Return relative to average drawdown	9.68	5.97	+3.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IQSM vs. ESGB - Sharpe Ratio Comparison

The current IQSM Sharpe Ratio is 1.57, which is comparable to the ESGB Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of IQSM and ESGB, 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

	IQSM	ESGB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.57	1.37	+0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	0.16	+0.59

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 -18.96%. 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%	-18.96%	-4.70%
Max Drawdown (1Y) Largest decline over 1 year	-8.86%	-2.60%	-6.26%
Max Drawdown (3Y) Largest decline over 3 years	-23.66%	-5.90%	-17.76%
Current Drawdown Current decline from peak	0.00%	-1.20%	+1.20%
Average Drawdown Average peak-to-trough decline	-4.86%	-7.07%	+2.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.42%	0.85%	+1.57%

Volatility

IQSM vs. ESGB - Volatility Comparison

IQ Candriam U.S. Mid Cap Equity ETF (IQSM) has a higher volatility of 3.84% compared to IQ MacKay ESG Core Plus Bond ETF (ESGB) at 1.26%. This indicates that IQSM's price experiences larger fluctuations and is considered to be riskier than ESGB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQSM	ESGB	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.84%	1.26%	+2.58%
Volatility (6M) Calculated over the trailing 6-month period	10.99%	2.75%	+8.24%
Volatility (1Y) Calculated over the trailing 1-year period	14.95%	3.74%	+11.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.88%	5.04%	+12.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.88%	5.04%	+12.84%

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 1.05%, less than ESGB's 5.49% yield.

Position	TTM	2025	2024	2023	2022	2021
ESGB IQ MacKay ESG Core Plus Bond ETF	5.49%	5.46%	5.40%	4.82%	3.17%	0.95%
IQSM IQ Candriam U.S. Mid Cap Equity ETF	1.05%	1.18%	1.22%	1.11%	0.32%	0.00%

Frequently Asked Questions

Can I hold both IQSM and ESGB in my portfolio?

IQSM and ESGB have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IQSM or ESGB?

IQSM has higher volatility (3.84%) compared to ESGB (1.26%). In terms of maximum drawdown, IQSM dropped -23.66% vs ESGB's -18.96%.

Which ETF is better, IQSM or ESGB?

On 3-year performance, IQSM leads with 14.32% vs 5.59% for ESGB. On fees, IQSM is cheaper at 0.15% per year. On volatility, ESGB has been the lower-risk option at 1.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQSM or ESGB?

Over the 3-year period, IQSM has performed better with a 14.32% return vs 5.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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?

ESGB has the higher dividend yield at 5.49%, compared with 1.05% for IQSM.

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.

Which has better risk-adjusted returns?

IQSM currently has the higher Sharpe Ratio (1.57 vs 1.37), 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.