IQSM vs. IMCB

Last updated Jul 14, 2026

IQSM (IQ Candriam U.S. Mid Cap Equity ETF) and IMCB (iShares Morningstar Mid-Cap ETF) are both Mid Cap Blend Equities funds - IQSM tracks the IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net while IMCB tracks the IMCB-US - Morningstar U.S. Mid Cap Index. Both are passively managed. Over the past 3 years, IQSM returned 11.91%/yr vs 16.28%/yr for IMCB. With a 0.96 correlation, they move nearly in lockstep. IQSM charges 0.15%/yr vs 0.04%/yr for IMCB.

Performance

IQSM vs. IMCB - 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 iShares Morningstar Mid-Cap ETF (IMCB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQSM achieves a 13.45% return, which is significantly lower than IMCB's 17.96% return.

IQSM

• 1D: -0.51%
• 1M: 0.55%
• 6M: 8.75%
• YTD: 13.45%
• 1Y: 20.44%
• 3Y*: 11.91%
• 5Y*: —
• 10Y*: —

IMCB

• 1D: -0.11%
• 1M: 2.38%
• 6M: 14.04%
• YTD: 17.96%
• 1Y: 22.38%
• 3Y*: 16.28%
• 5Y*: 9.54%
• 10Y*: 11.30%

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

IQSM vs. IMCB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
IQSM IQ Candriam U.S. Mid Cap Equity ETF	13.45%	7.97%	9.15%	15.82%	2.29%
IMCB iShares Morningstar Mid-Cap ETF	17.96%	10.25%	15.10%	16.37%	5.44%

Correlation

The correlation between IQSM and IMCB is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (All Time) Calculated using the full available price history since Oct 25, 2022	0.96

The correlation between IQSM and IMCB has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

IQSM vs. IMCB - Sectors Allocation Comparison

Sectors	IQSM	IMCB
Industrials	19.4%	18.5%
Technology	18.3%	22.6%
Healthcare	15.1%	7.9%
Financial Services	12.1%	11.9%
Real Estate	9.7%	4.3%
Consumer Cyclical	9.6%	9.1%
Basic Materials	5.2%	5.3%
Consumer Defensive	4.6%	5.1%
Communication Services	3.4%	2.5%
Energy	1.9%	6.7%
Utilities	0.7%	6.0%

Return for Risk

IQSM vs. IMCB — Risk / Return Rank

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

IQSM

IQSM Risk / Return Rank: 53
IQSM Sharpe Ratio Rank: 49
IQSM Sortino Ratio Rank: 51
IQSM Omega Ratio Rank: 45
IQSM Calmar Ratio Rank: 58
IQSM Martin Ratio Rank: 60

IMCB

IMCB Risk / Return Rank: 68
IMCB Sharpe Ratio Rank: 66
IMCB Sortino Ratio Rank: 66
IMCB Omega Ratio Rank: 63
IMCB Calmar Ratio Rank: 70
IMCB Martin Ratio Rank: 75

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. IMCB - 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 iShares Morningstar Mid-Cap ETF (IMCB). 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	IMCB	Difference
Sharpe ratio: Return per unit of total volatility	1.35	1.71	-0.35
Sortino ratio: Return per unit of downside risk	2.01	2.42	-0.42
Omega ratio: Gain probability vs. loss probability	1.24	1.30	-0.07
Calmar ratio: Return relative to maximum drawdown	2.32	2.79	-0.48
Martin ratio: Return relative to average drawdown	8.44	10.95	-2.51

IQSM vs. IMCB - Sharpe Ratio Comparison

The current IQSM Sharpe Ratio is 1.35, which is comparable to the IMCB Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of IQSM and IMCB, 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

IQSM vs. IMCB - Drawdown Comparison

The maximum IQSM drawdown since its inception was -23.66%, smaller than the maximum IMCB drawdown of -58.80%. Use the drawdown chart below to compare losses from any high point for IQSM and IMCB.

Drawdown Indicators

	IQSM	IMCB	Difference
Max Drawdown Largest peak-to-trough decline	-23.66%	-58.80%	+35.14%
Max Drawdown (1Y) Largest decline over 1 year	-8.86%	-8.05%	-0.81%
Max Drawdown (3Y) Largest decline over 3 years	-23.66%	-19.80%	-3.86%
Max Drawdown (5Y) Largest decline over 5 years	—	-25.15%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-40.99%	—
Current Drawdown Current decline from peak	-1.79%	-0.16%	-1.63%
Average Drawdown Average peak-to-trough decline	-4.75%	-7.70%	+2.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.43%	2.05%	+0.38%

Volatility

IQSM vs. IMCB - Volatility Comparison

IQ Candriam U.S. Mid Cap Equity ETF (IQSM) has a higher volatility of 4.02% compared to iShares Morningstar Mid-Cap ETF (IMCB) at 3.42%. This indicates that IQSM's price experiences larger fluctuations and is considered to be riskier than IMCB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQSM	IMCB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.02%	3.42%	+0.60%
Volatility (6M) Calculated over the trailing 6-month period	11.44%	10.03%	+1.41%
Volatility (1Y) Calculated over the trailing 1-year period	15.21%	13.20%	+2.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.81%	17.61%	+0.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.81%	19.60%	-1.79%

IQSM vs. IMCB - Expense Ratio Comparison

IQSM has a 0.15% expense ratio, which is higher than IMCB's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IQSM vs. IMCB - Dividend Comparison

IQSM's dividend yield for the trailing twelve months is around 1.06%, less than IMCB's 1.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IMCB iShares Morningstar Mid-Cap ETF	1.21%	1.42%	1.43%	1.55%	1.70%	1.08%	1.12%	1.32%	1.80%	1.31%	1.79%	1.47%
IQSM IQ Candriam U.S. Mid Cap Equity ETF	1.06%	1.18%	1.22%	1.11%	0.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IQSM and IMCB in my portfolio?

With a correlation of 0.94, IQSM and IMCB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IQSM or IMCB?

IQSM has higher volatility (4.02%) compared to IMCB (3.42%). In terms of maximum drawdown, IQSM dropped -23.66% vs IMCB's -58.80%.

Which ETF is better, IQSM or IMCB?

On 3-year performance, IMCB leads with 16.28% vs 11.91% for IQSM. On fees, IMCB is cheaper at 0.04% per year. On volatility, IMCB has been the lower-risk option at 3.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQSM or IMCB?

Over the 3-year period, IMCB has performed better with a 16.28% return vs 11.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQSM or IMCB?

IMCB is cheaper with a 0.04% expense ratio, compared with 0.15% for IQSM.

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

IMCB has the higher dividend yield at 1.21%, compared with 1.06% for IQSM.

What is the main difference between IQSM and IMCB?

IQSM tracks IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net, while IMCB tracks IMCB-US - Morningstar U.S. Mid Cap Index. They also come from different issuers: IndexIQ and iShares. Their fees differ too: 0.15% for IQSM and 0.04% for IMCB.

Which has better risk-adjusted returns?

IMCB currently has the higher Sharpe Ratio (1.71 vs 1.35), 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.