XOUT vs. IQM

Last updated Jun 4, 2026

XOUT (GraniteShares XOUT U.S. Large Cap ETF) and IQM (Franklin Intelligent Machines ETF) are both Large Cap Growth Equities funds. XOUT is passively managed, while IQM is actively managed. Over the past 5 years, XOUT returned 10.93%/yr vs 22.22%/yr for IQM. Their correlation of 0.83 suggests significant overlap in exposure. XOUT charges 0.60%/yr vs 0.50%/yr for IQM.

Performance

XOUT vs. IQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in GraniteShares XOUT U.S. Large Cap ETF (XOUT) 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, XOUT achieves a -3.24% return, which is significantly lower than IQM's 40.18% return.

XOUT

• 1D: -2.27%
• 1M: 9.28%
• YTD: -3.24%
• 6M: -4.85%
• 1Y: 8.51%
• 3Y*: 18.88%
• 5Y*: 10.93%
• 10Y*: —

IQM

• 1D: -0.37%
• 1M: 11.94%
• YTD: 40.18%
• 6M: 38.57%
• 1Y: 75.07%
• 3Y*: 37.62%
• 5Y*: 22.22%
• 10Y*: —

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

XOUT vs. IQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
XOUT GraniteShares XOUT U.S. Large Cap ETF	-3.24%	18.18%	23.11%	42.32%	-28.18%	26.13%	37.71%
IQM Franklin Intelligent Machines ETF	40.18%	30.76%	31.03%	41.06%	-33.36%	25.18%	78.48%

Correlation

The correlation between XOUT and IQM is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (All Time) Calculated using the full available price history since Feb 28, 2020	0.83

Over the past year, the correlation between XOUT and IQM has dropped to 0.53 - well below their long-term average of 0.83, suggesting their price drivers have been diverging.

XOUT vs. IQM - Sectors Allocation Comparison

Sectors	XOUT	IQM
Technology	35.1%	65.9%
Healthcare	17.3%	1.1%
Consumer Cyclical	15.4%	4.1%
Communication Services	12.4%	2.1%
Financial Services	9.6%	-
Consumer Defensive	5.7%	-
Industrials	3.3%	19.9%
Basic Materials	0.6%	-
Real Estate	0.4%	-
Energy	0.2%	2.7%
Utilities	-	3.3%

Return for Risk

XOUT vs. IQM — Risk / Return Rank

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

XOUT

XOUT Risk / Return Rank: 14
XOUT Sharpe Ratio Rank: 15
XOUT Sortino Ratio Rank: 15
XOUT Omega Ratio Rank: 15
XOUT Calmar Ratio Rank: 13
XOUT Martin Ratio Rank: 13

IQM

IQM Risk / Return Rank: 78
IQM Sharpe Ratio Rank: 81
IQM Sortino Ratio Rank: 66
IQM Omega Ratio Rank: 71
IQM Calmar Ratio Rank: 88
IQM Martin Ratio Rank: 83

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.

XOUT vs. IQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GraniteShares XOUT U.S. Large Cap ETF (XOUT) 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.

	XOUT	IQM	Difference
Sharpe ratio: Return per unit of total volatility	0.44	2.67	-2.23
Sortino ratio: Return per unit of downside risk	0.72	3.11	-2.38
Omega ratio: Gain probability vs. loss probability	1.09	1.43	-0.34
Calmar ratio: Return relative to maximum drawdown	0.37	5.13	-4.76
Martin ratio: Return relative to average drawdown	0.92	16.79	-15.87
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XOUT vs. IQM - Sharpe Ratio Comparison

The current XOUT Sharpe Ratio is 0.44, which is lower than the IQM Sharpe Ratio of 2.67. The chart below compares the historical Sharpe Ratios of XOUT 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.

Sharpe Ratios by Period

	XOUT	IQM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.44	2.67	-2.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.50	0.77	-0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.67	0.96	-0.30

Drawdowns

XOUT vs. IQM - Drawdown Comparison

The maximum XOUT drawdown since its inception was -31.29%, smaller than the maximum IQM drawdown of -44.91%. Use the drawdown chart below to compare losses from any high point for XOUT and IQM.

Drawdown Indicators

	XOUT	IQM	Difference
Max Drawdown Largest peak-to-trough decline	-31.29%	-44.91%	+13.62%
Max Drawdown (1Y) Largest decline over 1 year	-23.21%	-14.71%	-8.50%
Max Drawdown (3Y) Largest decline over 3 years	-23.77%	-30.42%	+6.65%
Max Drawdown (5Y) Largest decline over 5 years	-31.29%	-44.91%	+13.62%
Current Drawdown Current decline from peak	-6.09%	-0.37%	-5.72%
Average Drawdown Average peak-to-trough decline	-8.41%	-12.25%	+3.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.25%	4.49%	+4.76%

Volatility

XOUT vs. IQM - Volatility Comparison

The current volatility for GraniteShares XOUT U.S. Large Cap ETF (XOUT) is 7.48%, while Franklin Intelligent Machines ETF (IQM) has a volatility of 9.20%. This indicates that XOUT 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

	XOUT	IQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.48%	9.20%	-1.72%
Volatility (6M) Calculated over the trailing 6-month period	16.17%	22.92%	-6.75%
Volatility (1Y) Calculated over the trailing 1-year period	19.55%	28.27%	-8.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.78%	28.91%	-7.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.23%	30.72%	-7.49%

XOUT vs. IQM - Expense Ratio Comparison

XOUT has a 0.60% expense ratio, which is higher than IQM's 0.50% expense ratio.

Dividends

XOUT vs. IQM - Dividend Comparison

Neither XOUT nor IQM has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
IQM Franklin Intelligent Machines ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.17%	0.01%	0.00%
XOUT GraniteShares XOUT U.S. Large Cap ETF	0.00%	0.00%	0.00%	0.40%	0.51%	0.28%	0.53%	0.19%

Frequently Asked Questions

Can I hold both XOUT and IQM in my portfolio?

XOUT and IQM have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XOUT or IQM?

IQM has higher volatility (9.20%) compared to XOUT (7.48%). In terms of maximum drawdown, XOUT dropped -31.29% vs IQM's -44.91%.

Which ETF is better, XOUT or IQM?

On 5-year performance, IQM leads with 22.22% vs 10.93% for XOUT. On fees, IQM is cheaper at 0.50% per year. On volatility, XOUT has been the lower-risk option at 7.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XOUT or IQM?

Over the 5-year period, IQM has performed better with a 22.22% return vs 10.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XOUT or IQM?

IQM is cheaper with a 0.50% expense ratio, compared with 0.60% for XOUT.

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

XOUT and IQM have nearly identical dividend yields, around 0.00%.

What is the main difference between XOUT and IQM?

They also come from different issuers: GraniteShares and Franklin Templeton. Their fees differ too: 0.60% for XOUT and 0.50% for IQM.

Which has better risk-adjusted returns?

IQM currently has the higher Sharpe Ratio (2.67 vs 0.44), 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.