MMCA vs. IQSM

Last updated Jun 23, 2026

MMCA (IQ MacKay California Municipal Intermediate ETF) and IQSM (IQ Candriam U.S. Mid Cap Equity ETF) are both exchange-traded funds - MMCA is a Municipal Bonds fund actively managed by IndexIQ, while IQSM is a Mid Cap Blend Equities fund tracking the IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net. MMCA is actively managed, while IQSM is passively managed. Over the past 3 years, MMCA returned 4.11%/yr vs 13.88%/yr for IQSM. At a 0.18 correlation, their price movements are largely independent. MMCA charges 0.36%/yr vs 0.15%/yr for IQSM.

Performance

MMCA vs. IQSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ MacKay California Municipal Intermediate ETF (MMCA) 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, MMCA achieves a 1.22% return, which is significantly lower than IQSM's 12.62% return.

MMCA

• 1D: 0.08%
• 1M: 1.31%
• YTD: 1.22%
• 6M: 1.38%
• 1Y: 6.36%
• 3Y*: 4.11%
• 5Y*: —
• 10Y*: —

IQSM

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

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

MMCA vs. IQSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MMCA IQ MacKay California Municipal Intermediate ETF	1.22%	5.74%	1.70%	5.77%	4.17%
IQSM IQ Candriam U.S. Mid Cap Equity ETF	12.62%	7.97%	9.15%	15.82%	2.29%

Correlation

The correlation between MMCA and IQSM is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.22
Correlation (All Time) Calculated using the full available price history since Oct 25, 2022	0.18

The correlation between MMCA and IQSM shifts across timeframes, from 0.18 (all time) to 0.29 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

MMCA vs. IQSM — Risk / Return Rank

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

MMCA

MMCA Risk / Return Rank: 68
MMCA Sharpe Ratio Rank: 81
MMCA Sortino Ratio Rank: 86
MMCA Omega Ratio Rank: 89
MMCA Calmar Ratio Rank: 44
MMCA Martin Ratio Rank: 42

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

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.

MMCA vs. IQSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ MacKay California Municipal Intermediate ETF (MMCA) 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.

	MMCA	IQSM	Difference
Sharpe ratio: Return per unit of total volatility	2.50	1.63	+0.86
Sortino ratio: Return per unit of downside risk	3.70	2.36	+1.34
Omega ratio: Gain probability vs. loss probability	1.53	1.28	+0.25
Calmar ratio: Return relative to maximum drawdown	2.12	2.80	-0.68
Martin ratio: Return relative to average drawdown	6.48	10.23	-3.74

MMCA vs. IQSM - Sharpe Ratio Comparison

The current MMCA Sharpe Ratio is 2.50, which is higher than the IQSM Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of MMCA 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

MMCA vs. IQSM - Drawdown Comparison

The maximum MMCA drawdown since its inception was -16.04%, smaller than the maximum IQSM drawdown of -23.66%. Use the drawdown chart below to compare losses from any high point for MMCA and IQSM.

Drawdown Indicators

	MMCA	IQSM	Difference
Max Drawdown Largest peak-to-trough decline	-16.04%	-23.66%	+7.62%
Max Drawdown (1Y) Largest decline over 1 year	-3.01%	-8.86%	+5.85%
Max Drawdown (3Y) Largest decline over 3 years	-3.68%	-23.66%	+19.98%
Current Drawdown Current decline from peak	-0.98%	-0.52%	-0.46%
Average Drawdown Average peak-to-trough decline	-7.05%	-4.81%	-2.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.98%	2.43%	-1.45%

Volatility

MMCA vs. IQSM - Volatility Comparison

The current volatility for IQ MacKay California Municipal Intermediate ETF (MMCA) is 0.70%, while IQ Candriam U.S. Mid Cap Equity ETF (IQSM) has a volatility of 4.24%. This indicates that MMCA experiences smaller price fluctuations and is considered to be less risky than IQSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MMCA	IQSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.70%	4.24%	-3.54%
Volatility (6M) Calculated over the trailing 6-month period	1.92%	11.43%	-9.51%
Volatility (1Y) Calculated over the trailing 1-year period	2.56%	15.25%	-12.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.59%	17.88%	-14.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.59%	17.88%	-14.29%

MMCA vs. IQSM - Expense Ratio Comparison

MMCA has a 0.36% expense ratio, which is higher than IQSM's 0.15% expense ratio.

Dividends

MMCA vs. IQSM - Dividend Comparison

MMCA's dividend yield for the trailing twelve months is around 3.27%, more than IQSM's 1.07% yield.

Position	TTM	2025	2024	2023	2022	2021
IQSM IQ Candriam U.S. Mid Cap Equity ETF	1.07%	1.18%	1.22%	1.11%	0.32%	0.00%
MMCA IQ MacKay California Municipal Intermediate ETF	3.27%	3.39%	3.66%	3.57%	2.90%	0.05%

Frequently Asked Questions

Can I hold both MMCA and IQSM in my portfolio?

MMCA and IQSM have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MMCA or IQSM?

IQSM has higher volatility (4.24%) compared to MMCA (0.70%). In terms of maximum drawdown, MMCA dropped -16.04% vs IQSM's -23.66%.

Which ETF is better, MMCA or IQSM?

On 3-year performance, IQSM leads with 13.88% vs 4.11% for MMCA. On fees, IQSM is cheaper at 0.15% per year. On volatility, MMCA has been the lower-risk option at 0.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MMCA or IQSM?

Over the 3-year period, IQSM has performed better with a 13.88% return vs 4.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MMCA or IQSM?

IQSM is cheaper with a 0.15% expense ratio, compared with 0.36% for MMCA.

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

MMCA has the higher dividend yield at 3.27%, compared with 1.07% for IQSM.

What is the main difference between MMCA and IQSM?

MMCA is categorized as Municipal Bonds, while IQSM is Mid Cap Blend Equities. Their fees differ too: 0.36% for MMCA and 0.15% for IQSM.

Which has better risk-adjusted returns?

MMCA currently has the higher Sharpe Ratio (2.50 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.