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IQM - ETF AI Analysis

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IQM

Franklin Intelligent Machines ETF (IQM)

Rating:71Outperform
Price Target:
IQM, the Franklin Intelligent Machines ETF, earns a solid overall rating thanks to strong, AI-focused leaders like Nvidia, TSMC, and Broadcom, which benefit from powerful financial performance and long-term growth potential in semiconductors and data centers. Apple and Amphenol further support the fund with profitable, well-positioned businesses, while smaller positions like Kratos Defense and Teradyne add growth potential but also bring risks from high valuations, cash flow challenges, and possible technical pullbacks. The main risk factor is the fund’s heavy tilt toward richly valued, AI-related technology and semiconductor names, which could be vulnerable if growth expectations cool or market sentiment shifts.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year and in recent months, showing solid momentum.
Leading Technology and Industrial Holdings
Many of the largest positions, especially in technology and industrials, have shown strong performance, helping drive the fund’s returns.
Focused Exposure to Intelligent Machines Theme
The fund concentrates on companies tied to intelligent machines and related technologies, giving investors targeted exposure to a growing area.
Negative Factors
High Sector Concentration in Technology
A large portion of the portfolio is in technology stocks, which can make the fund more sensitive to downturns in that sector.
Heavy U.S. Market Dependence
With most assets invested in U.S. companies, the ETF is heavily tied to the performance of the U.S. market and offers limited global diversification.
Notable Underperforming Top Holdings
Some major positions, such as Tesla and Apple, have shown weak performance this year, which can drag on overall returns if the trend continues.

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

IQM Summary

Franklin Intelligent Machines ETF (IQM) is a fund that focuses on companies involved in robotics and artificial intelligence, rather than tracking a traditional market index. It mainly holds U.S. technology and industrial stocks that build chips, software, and equipment powering smart machines and automation. Well-known holdings include Nvidia and Apple. Someone might invest in IQM if they believe AI and robotics will keep growing and want a simple way to spread their money across many leaders in this space. A key risk is that it is heavily concentrated in tech-related stocks, so its price can swing a lot 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 riding the AI and semiconductor wave, with Nvidia, Broadcom, TSMC, and Celestica acting as the main engines of performance as their chip and hardware businesses keep climbing. Industrial names like GE Vernova and Teradyne are also rising, adding a steady boost from automation and testing equipment. On the flip side, Tesla has been losing steam and Apple’s more mixed, slightly soft showing keeps a small brake on returns. Overall, this is a globally focused, tech-heavy robotics and AI bet, not a broad market sampler.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia8.32%$7.64M$5.06T99.22%
76
Outperform
Broadcom6.49%$5.96M$2.00T117.28%
76
Outperform
Celestica6.38%$5.87M$47.30B381.10%
73
Outperform
TSMC5.99%$5.51M$1.80T147.84%
81
Outperform
GE Vernova Inc.3.70%$3.40M$308.81B202.72%
69
Neutral
Tesla3.43%$3.15M$1.41T32.46%
73
Outperform
Bloom Energy3.19%$2.93M$65.28B1119.75%
62
Neutral
Teradyne2.87%$2.64M$65.45B423.23%
71
Outperform
Amphenol2.43%$2.24M$184.06B95.89%
78
Outperform
Apple2.32%$2.13M$3.98T27.35%
79
Outperform

IQM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
94.91
Positive
100DMA
93.05
Positive
200DMA
88.67
Positive
Market Momentum
MACD
4.16
Negative
RSI
75.67
Negative
STOCH
93.82
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IQM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 98.52, equal to the 50-day MA of 94.91, and equal to the 200-day MA of 88.67, indicating a bullish trend. The MACD of 4.16 indicates Negative momentum. The RSI at 75.67 is Negative, neither overbought nor oversold. The STOCH value of 93.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IQM.

IQM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$91.89M0.50%
71
Outperform
$98.47M1.00%
69
Neutral
$97.16M0.50%
59
Neutral
$52.38M0.50%
64
Neutral
$20.85M0.59%
74
Outperform
$11.54M0.70%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IQM
Franklin Intelligent Machines ETF
104.06
43.35
71.41%
FFND
Future Fund Active ETF
CSNR
Cohen & Steers Natural Resources Active ETF
TEKY
Lazard Next Gen Technologies ETF
JHAI
Janus Henderson Global Artificial Intelligence ETF
PBOT
Pictet AI & Automation 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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