IQM vs SPY
Franklin Intelligent Machines ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IQM or SPY?
Large Cap Growth against Large Cap Blend.
SPY has a lower expense ratio. IQM led over 3Y, 5Y and the full window, SPY over 1Y. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 43.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IQM | SPY |
|---|---|---|
| Expense Ratio | 0.50% | 0.09%Best |
| AUM | $86M | $823.2B |
| Dividend Yield | 0.00% | 0.99% |
| Holdings | 83 | 1,515 |
| YTD Return | +14.99%Best | +13.53% |
| 1Y Return | +16.23% | +17.47%Best |
| 3Y Return (annualized) | +31.88%Best | +22.36% |
| 5Y Return (annualized) | +15.66%Best | +13.21% |
| Volatility (annualized) | 28.5% | 16.6%Best |
| Max Drawdown | -44.9% | -28.7%Best |
| $10,000 over 5 years | $20,697Best | $18,596 |
| Top 10 Weight | 43.7% | 38.2%Best |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Feb 25, 2020 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Feb 27, 2020 to Oct 14, 2026 (6.6 years).
IQM vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.6 years both funds cover.
IQM vs SPY Performance
Franklin Intelligent Machines ETF (IQM) is an ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IQM returned +16.23% while SPY returned +17.47%. Year to date, IQM is up 14.99% versus a gain of 13.53% for SPY.
Over three years, IQM compounded at +31.88% per year against +22.36% for SPY; over five years the annualized figures are +15.66% and +13.21% respectively. Across the full 7-year window we track, IQM has the edge at +24.28% annualized vs +16.76%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IQM has been the more volatile fund, with annualized monthly volatility of 28.5% compared with 16.6% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -44.9% for IQM and -28.7% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IQM charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, IQM currently yields 0.00% against 0.99% for SPY.
Holdings Overlap
59.3% of IQM's money is in holdings SPY also owns. 28.9% of SPY's money is in holdings IQM also owns.
The two portfolios partly overlap.
33 positions in common, counted across the 81 positions we hold weights for in IQM and 504 in SPY, against full books of 83 and 1,515.
What only one of them owns
Our book lists 463 positions for SPY that do not appear in our book for IQM (70.2% of the fund), and 25 for IQM that do not appear in SPY (14.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IQM | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.92% | 7.78% | 0.14% |
| AAPLApple, Inc | 3.76% | 7.45% | 3.69% |
| AVGOBroadcom Inc | 3.90% | 2.48% | 1.42% |
| SNDKVSandisk Corp. | 4.48% | 0.35% | 4.13% |
| GOOGLAlphabet Inc | 1.08% | 3.12% | 2.04% |
| AMDAdvanced Micro Devices Inc | 2.69% | 1.22% | 1.47% |
| GEVGE Vernova Inc. CDR (CAD Hedged) | 3.09% | 0.36% | 2.73% |
| TSLATesla Inc | 1.88% | 1.54% | 0.34% |
| TERTeradyne Inc - Common | 3.03% | 0.08% | 2.95% |
| LRCXLam Research Corp | 2.55% | 0.52% | 2.03% |
59.3% of IQM is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, IQM or SPY?
IQM has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option, by $41 a year on a $10,000 investment.
Which performed better, IQM or SPY?
Over the past year IQM returned +16.23% vs +17.47% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), IQM annualized +24.28% vs +16.76% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IQM or SPY?
IQM has been the more volatile fund at 28.5% annualized versus 16.6% for SPY. Worst drawdown: IQM -44.9% vs SPY -28.7%.
Should I hold both IQM and SPY?
IQM and SPY have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IQM and SPY?
59.3% of IQM's money is in holdings SPY also owns. 28.9% of SPY's is in holdings IQM also owns. They hold 33 positions in common, counted across the 81 positions we hold weights for in IQM and 504 in SPY.
Which pays a higher dividend, IQM or SPY?
IQM yields 0.00% while SPY yields 0.99%, so SPY currently pays the higher dividend yield.
Is SPY better than IQM?
SPY has a lower expense ratio. IQM led over 3Y, 5Y and the full window, SPY over 1Y. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 43.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.