OPTZ vs. IQSM

Last updated Jun 24, 2026

OPTZ (Optimize Strategy Index ETF) and IQSM (IQ Candriam U.S. Mid Cap Equity ETF) are both Mid Cap Blend Equities funds - OPTZ tracks the Optimize Strategy Index while IQSM tracks the IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net. Both are passively managed. Over the past year, OPTZ returned 61.16% vs 22.82% for IQSM. Their correlation of 0.88 suggests significant overlap in exposure. OPTZ charges 0.25%/yr vs 0.15%/yr for IQSM.

Performance

OPTZ vs. IQSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Optimize Strategy Index ETF (OPTZ) 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, OPTZ achieves a 32.54% return, which is significantly higher than IQSM's 11.70% return.

OPTZ

• 1D: -3.23%
• 1M: 7.00%
• YTD: 32.54%
• 6M: 30.49%
• 1Y: 61.16%
• 3Y*: —
• 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)

OPTZ vs. IQSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
OPTZ Optimize Strategy Index ETF	32.54%	22.83%	16.41%
IQSM IQ Candriam U.S. Mid Cap Equity ETF	11.70%	7.97%	9.43%

Correlation

The correlation between OPTZ and IQSM is 0.85, 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	0.85
Correlation (All Time) Calculated using the full available price history since Apr 23, 2024	0.88

The correlation between OPTZ and IQSM has been stable across timeframes, ranging from 0.85 to 0.88 - a consistent structural relationship.

OPTZ vs. IQSM - Sectors Allocation Comparison

Sectors	OPTZ	IQSM
Technology	55.4%	18.9%
Healthcare	9.4%	14.0%
Consumer Cyclical	8.5%	9.7%
Industrials	8.2%	20.9%
Financial Services	8.0%	12.1%
Consumer Defensive	3.5%	4.5%
Communication Services	2.6%	3.3%
Real Estate	1.4%	9.5%
Energy	1.3%	1.4%
Basic Materials	1.1%	4.7%
Utilities	0.6%	0.7%

Return for Risk

OPTZ vs. IQSM — Risk / Return Rank

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

OPTZ

OPTZ Risk / Return Rank: 92
OPTZ Sharpe Ratio Rank: 93
OPTZ Sortino Ratio Rank: 91
OPTZ Omega Ratio Rank: 89
OPTZ Calmar Ratio Rank: 92
OPTZ Martin Ratio Rank: 94

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.

OPTZ vs. IQSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Optimize Strategy Index ETF (OPTZ) 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.

	OPTZ	IQSM	Difference
Sharpe ratio: Return per unit of total volatility	3.09	1.50	+1.59
Sortino ratio: Return per unit of downside risk	3.95	2.20	+1.75
Omega ratio: Gain probability vs. loss probability	1.52	1.26	+0.26
Calmar ratio: Return relative to maximum drawdown	5.78	2.59	+3.20
Martin ratio: Return relative to average drawdown	25.39	9.42	+15.96

OPTZ vs. IQSM - Sharpe Ratio Comparison

The current OPTZ Sharpe Ratio is 3.09, which is higher than the IQSM Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of OPTZ 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

OPTZ vs. IQSM - Drawdown Comparison

The maximum OPTZ drawdown since its inception was -25.75%, which is greater than IQSM's maximum drawdown of -23.66%. Use the drawdown chart below to compare losses from any high point for OPTZ and IQSM.

Drawdown Indicators

	OPTZ	IQSM	Difference
Max Drawdown Largest peak-to-trough decline	-25.75%	-23.66%	-2.09%
Max Drawdown (1Y) Largest decline over 1 year	-10.63%	-8.86%	-1.77%
Max Drawdown (3Y) Largest decline over 3 years	—	-23.66%	—
Current Drawdown Current decline from peak	-3.23%	-1.33%	-1.90%
Average Drawdown Average peak-to-trough decline	-3.36%	-4.81%	+1.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.42%	2.43%	-0.01%

Volatility

OPTZ vs. IQSM - Volatility Comparison

Optimize Strategy Index ETF (OPTZ) has a higher volatility of 9.74% compared to IQ Candriam U.S. Mid Cap Equity ETF (IQSM) at 4.35%. This indicates that OPTZ'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

	OPTZ	IQSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.74%	4.35%	+5.39%
Volatility (6M) Calculated over the trailing 6-month period	16.08%	11.46%	+4.62%
Volatility (1Y) Calculated over the trailing 1-year period	19.88%	15.24%	+4.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.28%	17.88%	+3.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.28%	17.88%	+3.40%

OPTZ vs. IQSM - Expense Ratio Comparison

OPTZ has a 0.25% expense ratio, which is higher than IQSM's 0.15% 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

OPTZ vs. IQSM - Dividend Comparison

OPTZ's dividend yield for the trailing twelve months is around 0.44%, 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%
OPTZ Optimize Strategy Index ETF	0.44%	0.58%	0.32%	0.00%	0.00%

Frequently Asked Questions

Can I hold both OPTZ and IQSM in my portfolio?

OPTZ and IQSM have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OPTZ or IQSM?

OPTZ has higher volatility (9.74%) compared to IQSM (4.35%). In terms of maximum drawdown, OPTZ dropped -25.75% vs IQSM's -23.66%.

Which ETF is better, OPTZ or IQSM?

On 1-year performance, OPTZ leads with 61.16% vs 22.82% for IQSM. On fees, IQSM is cheaper at 0.15% 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, OPTZ or IQSM?

Over the 1-year period, OPTZ has performed better with a 61.16% return vs 22.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OPTZ or IQSM?

IQSM is cheaper with a 0.15% expense ratio, compared with 0.25% for OPTZ.

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

IQSM has the higher dividend yield at 1.08%, compared with 0.44% for OPTZ.

What is the main difference between OPTZ and IQSM?

OPTZ tracks Optimize Strategy Index, while IQSM tracks IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net. They also come from different issuers: Optimize and IndexIQ. Their fees differ too: 0.25% for OPTZ and 0.15% for IQSM.

Which has better risk-adjusted returns?

OPTZ currently has the higher Sharpe Ratio (3.09 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.