IQSM vs. SPY

Last updated Jun 23, 2026

IQSM (IQ Candriam U.S. Mid Cap Equity ETF) and SPY (State Street SPDR S&P 500 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 SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 3 years, IQSM returned 13.88%/yr vs 21.27%/yr for SPY. Their correlation of 0.82 suggests significant overlap in exposure. IQSM charges 0.15%/yr vs 0.09%/yr for SPY.

Performance

IQSM vs. SPY - 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 State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQSM achieves a 12.62% return, which is significantly higher than SPY's 9.74% return.

IQSM

• 1D: 0.19%
• 1M: 2.84%
• YTD: 12.62%
• 6M: 10.34%
• 1Y: 24.75%
• 3Y*: 13.88%
• 5Y*: —
• 10Y*: —

SPY

• 1D: -0.31%
• 1M: 0.09%
• YTD: 9.74%
• 6M: 9.27%
• 1Y: 26.65%
• 3Y*: 21.27%
• 5Y*: 13.51%
• 10Y*: 15.70%

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

IQSM vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
IQSM IQ Candriam U.S. Mid Cap Equity ETF	12.62%	7.97%	9.15%	15.82%	2.29%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	24.89%	26.18%	1.40%

Correlation

The correlation between IQSM and SPY is 0.77, 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	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (All Time) Calculated using the full available price history since Oct 25, 2022	0.82

The correlation between IQSM and SPY has been stable across timeframes, ranging from 0.77 to 0.82 - a consistent structural relationship.

IQSM vs. SPY - Sectors Allocation Comparison

Sectors	IQSM	SPY
Industrials	20.9%	7.8%
Technology	18.9%	39.0%
Healthcare	14.0%	8.3%
Financial Services	12.1%	11.1%
Consumer Cyclical	9.7%	9.9%
Real Estate	9.5%	1.8%
Basic Materials	4.7%	1.7%
Consumer Defensive	4.5%	4.5%
Communication Services	3.3%	10.6%
Energy	1.4%	3.1%
Utilities	0.7%	2.1%

Return for Risk

IQSM vs. SPY — 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: 45
IQSM Calmar Ratio Rank: 58
IQSM Martin Ratio Rank: 59

SPY

SPY Risk / Return Rank: 68
SPY Sharpe Ratio Rank: 69
SPY Sortino Ratio Rank: 66
SPY Omega Ratio Rank: 68
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 74

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. SPY - 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 State Street SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.63	2.16	-0.52
Sortino ratio: Return per unit of downside risk	2.36	2.91	-0.55
Omega ratio: Gain probability vs. loss probability	1.28	1.39	-0.11
Calmar ratio: Return relative to maximum drawdown	2.80	3.01	-0.21
Martin ratio: Return relative to average drawdown	10.23	13.54	-3.31

IQSM vs. SPY - Sharpe Ratio Comparison

The current IQSM Sharpe Ratio is 1.63, which is comparable to the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of IQSM and SPY, 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. SPY - Drawdown Comparison

The maximum IQSM drawdown since its inception was -23.66%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for IQSM and SPY.

Drawdown Indicators

	IQSM	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-23.66%	-55.19%	+31.53%
Max Drawdown (1Y) Largest decline over 1 year	-8.86%	-8.88%	+0.02%
Max Drawdown (3Y) Largest decline over 3 years	-23.66%	-18.76%	-4.90%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-0.52%	-1.75%	+1.23%
Average Drawdown Average peak-to-trough decline	-4.81%	-9.04%	+4.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.43%	1.97%	+0.46%

Volatility

IQSM vs. SPY - Volatility Comparison

The current volatility for IQ Candriam U.S. Mid Cap Equity ETF (IQSM) is 4.24%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.64%. This indicates that IQSM experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQSM	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.24%	4.64%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	11.43%	9.75%	+1.68%
Volatility (1Y) Calculated over the trailing 1-year period	15.25%	12.43%	+2.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.88%	17.14%	+0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.88%	17.99%	-0.11%

IQSM vs. SPY - Expense Ratio Comparison

IQSM has a 0.15% expense ratio, which is higher than SPY's 0.09% 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. SPY - Dividend Comparison

IQSM's dividend yield for the trailing twelve months is around 1.07%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IQSM IQ Candriam U.S. Mid Cap Equity ETF	1.07%	1.18%	1.22%	1.11%	0.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	1.01%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both IQSM and SPY in my portfolio?

IQSM and SPY have a correlation of 0.77, 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 SPY?

SPY has higher volatility (4.64%) compared to IQSM (4.24%). In terms of maximum drawdown, IQSM dropped -23.66% vs SPY's -55.19%.

Which ETF is better, IQSM or SPY?

On 3-year performance, SPY leads with 21.27% vs 13.88% for IQSM. On fees, SPY is cheaper at 0.09% per year. On volatility, IQSM has been the lower-risk option at 4.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQSM or SPY?

Over the 3-year period, SPY has performed better with a 21.27% return vs 13.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQSM or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.15% for IQSM.

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

IQSM has the higher dividend yield at 1.07%, compared with 1.01% for SPY.

What is the main difference between IQSM and SPY?

IQSM is categorized as Mid Cap Blend Equities, while SPY is S&P 500. IQSM tracks IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net, while SPY tracks S&P 500 Index. They also come from different issuers: IndexIQ and State Street. Their fees differ too: 0.15% for IQSM and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.16 vs 1.63), 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.