LRND vs. IQSM

Last updated Jun 24, 2026

LRND (IQ U.S. Large Cap R&D Leaders ETF) and IQSM (IQ Candriam U.S. Mid Cap Equity ETF) are both exchange-traded funds - LRND is a Large Cap Blend Equities fund tracking the IQ U.S. Large Cap R&D Leaders Index - Benchmark TR Gross, while IQSM is a Mid Cap Blend Equities fund tracking the IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net. Both are passively managed. Over the past 3 years, LRND returned 20.47%/yr vs 13.57%/yr for IQSM. A 0.72 correlation means they provide meaningful diversification when combined. LRND charges 0.14%/yr vs 0.15%/yr for IQSM.

Performance

LRND vs. IQSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ U.S. Large Cap R&D Leaders ETF (LRND) and IQ Candriam U.S. Mid Cap Equity ETF (IQSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LRND achieves a 5.96% return, which is significantly lower than IQSM's 11.70% return.

LRND

• 1D: -1.48%
• 1M: -3.62%
• YTD: 5.96%
• 6M: 5.12%
• 1Y: 24.68%
• 3Y*: 20.47%
• 5Y*: —
• 10Y*: —

IQSM

• 1D: -0.82%
• 1M: 1.99%
• YTD: 11.70%
• 6M: 9.85%
• 1Y: 22.82%
• 3Y*: 13.57%
• 5Y*: —
• 10Y*: —

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

LRND vs. IQSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
LRND IQ U.S. Large Cap R&D Leaders ETF	5.96%	20.31%	21.68%	44.13%	-1.94%
IQSM IQ Candriam U.S. Mid Cap Equity ETF	11.70%	7.97%	9.15%	15.82%	2.29%

Correlation

The correlation between LRND and IQSM is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (All Time) Calculated using the full available price history since Oct 25, 2022	0.72

The correlation between LRND and IQSM has been stable across timeframes, ranging from 0.63 to 0.72 - a consistent structural relationship.

LRND vs. IQSM - Sectors Allocation Comparison

Sectors	LRND	IQSM
Technology	60.4%	18.9%
Communication Services	14.7%	3.3%
Healthcare	9.8%	14.0%
Consumer Cyclical	7.6%	9.7%
Industrials	5.1%	20.9%
Consumer Defensive	1.7%	4.5%
Basic Materials	0.8%	4.7%
Financial Services	0.0%	12.1%
Energy	-	1.4%
Real Estate	-	9.5%
Utilities	-	0.7%

Return for Risk

LRND vs. IQSM — Risk / Return Rank

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

LRND

LRND Risk / Return Rank: 44
LRND Sharpe Ratio Rank: 48
LRND Sortino Ratio Rank: 46
LRND Omega Ratio Rank: 45
LRND Calmar Ratio Rank: 38
LRND Martin Ratio Rank: 45

IQSM

IQSM Risk / Return Rank: 50
IQSM Sharpe Ratio Rank: 47
IQSM Sortino Ratio Rank: 47
IQSM Omega Ratio Rank: 43
IQSM Calmar Ratio Rank: 57
IQSM Martin Ratio Rank: 58

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.

LRND vs. IQSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ U.S. Large Cap R&D Leaders ETF (LRND) and IQ Candriam U.S. Mid Cap Equity ETF (IQSM). 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.

	LRND	IQSM	Difference
Sharpe ratio: Return per unit of total volatility	1.54	1.50	+0.04
Sortino ratio: Return per unit of downside risk	2.12	2.20	-0.07
Omega ratio: Gain probability vs. loss probability	1.27	1.26	+0.01
Calmar ratio: Return relative to maximum drawdown	1.79	2.59	-0.79
Martin ratio: Return relative to average drawdown	6.84	9.42	-2.58

LRND vs. IQSM - Sharpe Ratio Comparison

The current LRND Sharpe Ratio is 1.54, which is comparable to the IQSM Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of LRND and IQSM, 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

LRND vs. IQSM - Drawdown Comparison

The maximum LRND drawdown since its inception was -25.43%, which is greater than IQSM's maximum drawdown of -23.66%. Use the drawdown chart below to compare losses from any high point for LRND and IQSM.

Drawdown Indicators

	LRND	IQSM	Difference
Max Drawdown Largest peak-to-trough decline	-25.43%	-23.66%	-1.77%
Max Drawdown (1Y) Largest decline over 1 year	-13.83%	-8.86%	-4.97%
Max Drawdown (3Y) Largest decline over 3 years	-21.06%	-23.66%	+2.60%
Current Drawdown Current decline from peak	-6.47%	-1.33%	-5.14%
Average Drawdown Average peak-to-trough decline	-6.22%	-4.81%	-1.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.62%	2.43%	+1.19%

Volatility

LRND vs. IQSM - Volatility Comparison

IQ U.S. Large Cap R&D Leaders ETF (LRND) has a higher volatility of 6.33% compared to IQ Candriam U.S. Mid Cap Equity ETF (IQSM) at 4.35%. This indicates that LRND's price experiences larger fluctuations and is considered to be riskier than IQSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LRND	IQSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.33%	4.35%	+1.98%
Volatility (6M) Calculated over the trailing 6-month period	12.94%	11.46%	+1.48%
Volatility (1Y) Calculated over the trailing 1-year period	16.11%	15.24%	+0.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.06%	17.88%	+2.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.06%	17.88%	+2.18%

LRND vs. IQSM - Expense Ratio Comparison

LRND has a 0.14% expense ratio, which is lower than IQSM's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LRND vs. IQSM - Dividend Comparison

LRND's dividend yield for the trailing twelve months is around 0.51%, less than IQSM's 1.08% yield.

Position	TTM	2025	2024	2023	2022
IQSM IQ Candriam U.S. Mid Cap Equity ETF	1.08%	1.18%	1.22%	1.11%	0.32%
LRND IQ U.S. Large Cap R&D Leaders ETF	0.51%	0.67%	0.97%	1.22%	1.32%

Frequently Asked Questions

Can I hold both LRND and IQSM in my portfolio?

LRND and IQSM have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LRND or IQSM?

LRND has higher volatility (6.33%) compared to IQSM (4.35%). In terms of maximum drawdown, LRND dropped -25.43% vs IQSM's -23.66%.

Which ETF is better, LRND or IQSM?

On 3-year performance, LRND leads with 20.47% vs 13.57% for IQSM. On fees, LRND is cheaper at 0.14% per year. On volatility, IQSM has been the lower-risk option at 4.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LRND or IQSM?

Over the 3-year period, LRND has performed better with a 20.47% return vs 13.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LRND or IQSM?

LRND is cheaper with a 0.14% expense ratio, compared with 0.15% for IQSM.

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

IQSM has the higher dividend yield at 1.08%, compared with 0.51% for LRND.

What is the main difference between LRND and IQSM?

LRND is categorized as Large Cap Blend Equities, while IQSM is Mid Cap Blend Equities. LRND tracks IQ U.S. Large Cap R&D Leaders Index - Benchmark TR Gross, while IQSM tracks IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net. Their fees differ too: 0.14% for LRND and 0.15% for IQSM.

Which has better risk-adjusted returns?

LRND currently has the higher Sharpe Ratio (1.54 vs 1.50), 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.