USXF vs. IQM

Last updated Jun 23, 2026

USXF (iShares ESG Advanced MSCI USA ETF) and IQM (Franklin Intelligent Machines ETF) are both Large Cap Growth Equities funds. USXF is passively managed, while IQM is actively managed. Over the past 5 years, USXF returned 15.57%/yr vs 21.97%/yr for IQM. Their correlation of 0.88 suggests significant overlap in exposure. USXF charges 0.10%/yr vs 0.50%/yr for IQM.

Performance

USXF vs. IQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Advanced MSCI USA ETF (USXF) and Franklin Intelligent Machines ETF (IQM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USXF achieves a 21.17% return, which is significantly lower than IQM's 44.08% return.

USXF

• 1D: 0.37%
• 1M: 4.92%
• YTD: 21.17%
• 6M: 20.48%
• 1Y: 36.70%
• 3Y*: 26.99%
• 5Y*: 15.57%
• 10Y*: —

IQM

• 1D: 1.35%
• 1M: 10.43%
• YTD: 44.08%
• 6M: 40.98%
• 1Y: 79.61%
• 3Y*: 38.44%
• 5Y*: 21.97%
• 10Y*: —

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

USXF vs. IQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
USXF iShares ESG Advanced MSCI USA ETF	21.17%	16.97%	26.16%	31.65%	-21.20%	27.14%	23.07%
IQM Franklin Intelligent Machines ETF	44.08%	30.76%	31.03%	41.06%	-33.36%	25.18%	55.99%

Correlation

The correlation between USXF and IQM is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Jun 18, 2020	0.88

The correlation between USXF and IQM has been stable across timeframes, ranging from 0.86 to 0.90 - a consistent structural relationship.

USXF vs. IQM - Sectors Allocation Comparison

Sectors	USXF	IQM
Technology	55.7%	68.4%
Financial Services	14.5%	-
Industrials	7.8%	17.1%
Consumer Cyclical	6.4%	2.9%
Healthcare	5.3%	1.0%
Real Estate	3.7%	-
Basic Materials	2.2%	-
Communication Services	1.9%	2.3%
Utilities	1.3%	3.2%
Consumer Defensive	0.9%	-
Energy	0.1%	2.3%

Return for Risk

USXF vs. IQM — Risk / Return Rank

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

USXF

USXF Risk / Return Rank: 68
USXF Sharpe Ratio Rank: 67
USXF Sortino Ratio Rank: 62
USXF Omega Ratio Rank: 64
USXF Calmar Ratio Rank: 74
USXF Martin Ratio Rank: 76

IQM

IQM Risk / Return Rank: 80
IQM Sharpe Ratio Rank: 84
IQM Sortino Ratio Rank: 68
IQM Omega Ratio Rank: 73
IQM Calmar Ratio Rank: 91
IQM Martin Ratio Rank: 85

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.

USXF vs. IQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Advanced MSCI USA ETF (USXF) and Franklin Intelligent Machines ETF (IQM). 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.

	USXF	IQM	Difference
Sharpe ratio: Return per unit of total volatility	2.12	2.60	-0.48
Sortino ratio: Return per unit of downside risk	2.79	2.98	-0.19
Omega ratio: Gain probability vs. loss probability	1.37	1.42	-0.04
Calmar ratio: Return relative to maximum drawdown	3.62	5.44	-1.82
Martin ratio: Return relative to average drawdown	13.89	17.08	-3.19

USXF vs. IQM - Sharpe Ratio Comparison

The current USXF Sharpe Ratio is 2.12, which is comparable to the IQM Sharpe Ratio of 2.60. The chart below compares the historical Sharpe Ratios of USXF and IQM, 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

USXF vs. IQM - Drawdown Comparison

The maximum USXF drawdown since its inception was -29.54%, smaller than the maximum IQM drawdown of -44.91%. Use the drawdown chart below to compare losses from any high point for USXF and IQM.

Drawdown Indicators

	USXF	IQM	Difference
Max Drawdown Largest peak-to-trough decline	-29.54%	-44.91%	+15.37%
Max Drawdown (1Y) Largest decline over 1 year	-10.19%	-14.71%	+4.52%
Max Drawdown (3Y) Largest decline over 3 years	-20.93%	-30.42%	+9.49%
Max Drawdown (5Y) Largest decline over 5 years	-29.54%	-44.91%	+15.37%
Current Drawdown Current decline from peak	-0.18%	0.00%	-0.18%
Average Drawdown Average peak-to-trough decline	-6.39%	-12.18%	+5.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	4.68%	-2.03%

Volatility

USXF vs. IQM - Volatility Comparison

The current volatility for iShares ESG Advanced MSCI USA ETF (USXF) is 7.80%, while Franklin Intelligent Machines ETF (IQM) has a volatility of 13.76%. This indicates that USXF experiences smaller price fluctuations and is considered to be less risky than IQM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USXF	IQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.80%	13.76%	-5.96%
Volatility (6M) Calculated over the trailing 6-month period	14.29%	25.34%	-11.05%
Volatility (1Y) Calculated over the trailing 1-year period	17.45%	30.87%	-13.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.79%	29.43%	-9.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.32%	31.01%	-11.69%

USXF vs. IQM - Expense Ratio Comparison

USXF has a 0.10% expense ratio, which is lower than IQM's 0.50% expense ratio.

Dividends

USXF vs. IQM - Dividend Comparison

USXF's dividend yield for the trailing twelve months is around 0.79%, while IQM has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020
IQM Franklin Intelligent Machines ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.17%	0.01%
USXF iShares ESG Advanced MSCI USA ETF	0.79%	0.93%	1.00%	1.21%	1.39%	0.86%	0.58%

Frequently Asked Questions

Can I hold both USXF and IQM in my portfolio?

USXF and IQM have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USXF or IQM?

IQM has higher volatility (13.76%) compared to USXF (7.80%). In terms of maximum drawdown, USXF dropped -29.54% vs IQM's -44.91%.

Which ETF is better, USXF or IQM?

On 5-year performance, IQM leads with 21.97% vs 15.57% for USXF. On fees, USXF is cheaper at 0.10% per year. On volatility, USXF has been the lower-risk option at 7.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USXF or IQM?

Over the 5-year period, IQM has performed better with a 21.97% return vs 15.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USXF or IQM?

USXF is cheaper with a 0.10% expense ratio, compared with 0.50% for IQM.

Which ETF pays a higher dividend yield, USXF or IQM?

USXF has the higher dividend yield at 0.79%, compared with 0.00% for IQM.

What is the main difference between USXF and IQM?

They also come from different issuers: iShares and Franklin Templeton. Their fees differ too: 0.10% for USXF and 0.50% for IQM.

Which has better risk-adjusted returns?

IQM currently has the higher Sharpe Ratio (2.60 vs 2.12), 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.