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IQM - ETF AI Analysis

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IQM

Franklin Intelligent Machines ETF (IQM)

Rating:67Neutral
Price Target:
IQM, the Franklin Intelligent Machines ETF, appears to be a solid but not top-tier fund, with its rating driven largely by strong, AI-focused leaders like Nvidia, TSMC, Broadcom, and Apple, all benefiting from robust financial performance and strategic positioning in AI and advanced technologies. These strengths are partly offset by weaker or more challenged holdings such as SanDisk and Bloom Energy, where valuation and profitability concerns weigh on the fund. A key risk factor is the heavy concentration in high-valuation, AI-related semiconductor and technology names, which could be vulnerable if growth expectations or market sentiment shift.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, indicating that its strategy has recently worked well for investors.
Leading Technology and Semiconductor Holdings
Top positions like Nvidia, TSMC, Broadcom, and Apple have shown solid to very strong performance, helping drive the fund’s returns.
Focused Yet Global Exposure
While most assets are in U.S. companies, the fund still includes holdings from several other countries, adding some international diversification.
Negative Factors
Recent Short-Term Weakness
The ETF has experienced a weak one-month stretch, which may signal higher short-term volatility for investors.
High Concentration in Technology
With a large share of assets in the technology sector, the fund is heavily exposed to swings in tech-related stocks.
Moderate Expense Ratio
The fund’s fees are not especially low, which means costs could eat into returns compared with cheaper ETFs.

IQM vs. SPDR S&P 500 ETF (SPY)

IQM Summary

Franklin Intelligent Machines ETF (IQM) is a fund that focuses on the theme of robotics and artificial intelligence rather than tracking a traditional market index. It mainly holds U.S. technology and industrial companies that build chips, software, and equipment used in smart machines and automation. Well-known holdings include Nvidia, Apple, and Tesla. Someone might invest in IQM to tap into potential long-term growth from AI and robotics while getting diversification across many companies in this space. A key risk is that it is heavily concentrated in tech-related stocks, so its price can swing sharply and move up or down with changes in the technology sector.
How much will it cost me?The Franklin Intelligent Machines ETF (IQM) has an expense ratio of 0.50%, which means you’ll pay $5 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, focusing on a specialized niche like robotics and AI that requires more research and expertise.
What would affect this ETF?The Franklin Intelligent Machines ETF (IQM), with its focus on robotics and AI, could benefit from increasing global investment in technology and automation as industries seek efficiency and innovation. However, it may face challenges from rising interest rates, which can negatively impact growth-focused sectors like technology, and potential regulatory scrutiny on AI development. Its global exposure and top holdings in companies like Nvidia and Tesla position it well for growth, but economic slowdowns or geopolitical tensions could also affect performance.

IQM Top 10 Holdings

IQM is essentially riding the AI hardware wave, with Nvidia, TSMC, and Broadcom acting as the fund’s main engines thanks to their central role in chips powering intelligent machines, even if their recent performance has been a bit mixed. Apple adds a steadier Big Tech backbone and has been rising, giving the portfolio some familiar strength. On the flip side, Celestica and Bloom Energy have been lagging, occasionally dragging on returns. Overall, this is a globally focused, semiconductor-heavy bet on robotics and AI rather than a broad market play.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia7.57%$7.77M$4.72T15.56%
76
Outperform
TSMC5.87%$6.03M$1.77T71.87%
81
Outperform
Broadcom4.77%$4.90M$1.85T34.87%
76
Outperform
Celestica4.70%$4.82M$40.46B70.20%
73
Outperform
3.94%$4.04M
Apple3.89%$3.99M$4.90T52.64%
79
Outperform
SanDisk Corp3.53%$3.62M$189.55B2839.34%
55
Neutral
GE Vernova Inc.3.45%$3.54M$261.53B50.84%
69
Neutral
Bloom Energy2.95%$3.02M$61.00B460.48%
62
Neutral
Teradyne2.77%$2.84M$57.21B253.00%
71
Outperform

IQM Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
113.12
Negative
100DMA
106.77
Negative
200DMA
98.78
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IQM, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 106.68, equal to the 50-day MA of 113.12, and equal to the 200-day MA of 98.78, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQM.

IQM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$101.31M0.50%
67
Neutral
$480.79M0.58%
62
Neutral
$426.35M0.39%
60
Neutral
$395.94M0.85%
55
Neutral
$204.34M0.50%
60
Neutral
$123.71M0.75%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IQM
Franklin Intelligent Machines ETF
102.49
23.26
29.36%
ALAI
Alger AI Enablers & Adopters ETF
CCNR
CoreCommodity Natural Resources ETF
BITQ
Bitwise Crypto Industry Innovators ETF
FBOT
Fidelity Disruptive Automation ETF
AIFD
TCW Artificial Intelligence ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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