IQM - ETF AI Analysis

Top Page

Franklin Intelligent Machines ETF (IQM)

Rating:71Outperform

Price Target:―

The Franklin Intelligent Machines ETF (IQM) benefits from strong contributions by holdings like Nvidia and Broadcom, which are well-positioned for growth in AI and semiconductor technologies despite valuation concerns. However, weaker holdings such as Axon and Kratos Defense, with challenges in cash flow and bearish technical signals, may have slightly held back the fund's overall rating. A key risk factor is the ETF's concentration in high-growth technology stocks, which could lead to volatility during market downturns.

Positive Factors

Strong Top Holdings

Several top holdings, including Nvidia, Broadcom, and TSMC, have delivered strong year-to-date performance, supporting the ETF's overall growth.

Sector Focus on Technology

With over 60% exposure to the technology sector, the ETF benefits from the strong momentum in innovative industries.

Healthy Year-to-Date Performance

The ETF has shown solid year-to-date returns, indicating strong recent performance for investors.

Negative Factors

High Geographic Concentration

The ETF is heavily concentrated in U.S. companies, with over 93% exposure, limiting diversification across global markets.

Underperforming Holdings

Some holdings, such as Intuitive Surgical, have shown weak year-to-date performance, which could drag on overall returns.

Moderate Expense Ratio

The ETF's expense ratio of 0.5% is higher than some low-cost alternatives, potentially reducing net returns for investors.

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

AUM51.65M

RegionGlobal

Expense Ratio0.50%

Beta1.64

IssuerFranklin

Inception DateFeb 25, 2020

Dividend YieldN/A

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume7,416

30 Day Avg. Volume6,569

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

102.03

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering70

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

IQM Summary

The Franklin Intelligent Machines ETF (Ticker: IQM) is an investment fund focused on companies leading the way in robotics and artificial intelligence. It includes well-known names like Nvidia and Broadcom, which are at the forefront of developing advanced technologies such as machine learning and industrial automation. This ETF is a great option for investors looking to tap into the growth potential of cutting-edge tech and innovation while diversifying their portfolio across multiple industries. However, it’s important to note that the fund is heavily invested in the technology sector, meaning its performance could be impacted by fluctuations in the tech market.

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

The Franklin Intelligent Machines ETF (IQM) is heavily concentrated in the technology and industrials sectors, with a clear focus on robotics and AI innovation. Nvidia and Broadcom are steady performers, benefiting from their leadership in AI and semiconductor technologies, though valuation concerns may cap their upside. Tesla’s recent struggles are holding the fund back, as mixed technical signals and high expectations weigh on its stock. Meanwhile, Celestica is rising as a standout contributor, driven by strong revenue growth and strategic investments. Overall, the fund’s global exposure and thematic focus make it a compelling play on the future of intelligent machines.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	9.20%	$4.76M	$4.32T	31.39%	76 Outperform
AVGO	Broadcom	8.15%	$4.21M	$1.82T	141.14%	76 Outperform
CLS	Celestica	6.80%	$3.52M	$37.78B	272.15%	74 Outperform
TSLA	Tesla	6.57%	$3.39M	$1.39T	24.00%	73 Outperform
TSM	TSMC	5.70%	$2.94M	$1.17T	54.83%	81 Outperform
AAPL	Apple	3.94%	$2.04M	$4.09T	17.89%	80 Outperform
KTOS	Kratos Defense	3.52%	$1.82M	$12.67B	172.06%	61 Neutral
AXON	Axon Enterprise	3.20%	$1.66M	$41.73B	-16.34%	58 Neutral
APH	Amphenol	2.80%	$1.45M	$168.69B	88.11%	77 Outperform
GEV	GE Vernova Inc.	2.35%	$1.21M	$155.35B	70.74%	66 Neutral

IQM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

88.60

Negative

100DMA

84.03

Positive

200DMA

74.03

Positive

Market Momentum

MACD

-1.23

Positive

RSI

50.59

Neutral

STOCH

74.92

Neutral

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 88.38, equal to the 50-day MA of 88.60, and equal to the 200-day MA of 74.03, indicating a neutral trend. The MACD of -1.23 indicates Positive momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 74.92 is Neutral, 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
IQM	―	―	$51.65M	0.50%	―
FDCF	―	―	$99.20M	0.50%	―
AGIX	―	―	$93.62M	0.99%	―
AIFD	―	―	$80.92M	0.75%	―
TEKY	―	―	$48.03M	0.50%	―
JHAI	―	―	$14.24M	0.59%	―

Performance Comparison

IQM

Franklin Intelligent Machines ETF

87.72

21.17

31.81%

FDCF

Fidelity Disruptive Communications ETF

―

AGIX

KraneShares Artificial Intelligence & Technology ETF

―

AIFD

TCW Artificial Intelligence ETF

―

TEKY

Lazard Next Gen Technologies ETF

―

JHAI

Janus Henderson Global 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.

Disclaimer

This 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: ―

Table of Contents