What is the  IQM ETF ?
4 min read
By Ron Koren, ETF Insider

What is the IQM ETF ?

In the fast-paced world of finance, exchange-traded funds (ETFs) have gained immense popularity as a versatile and efficient investment tool. Among them, the IQM ETF stands out for its focus on the investment theme of intelligent machines. In this article, we will delve into the details of the IQM ETF, its underlying principles, benefits, and considerations before investing.

IQM ETF: Overview

The IQM ETF is an exchange-traded fund that aims to capture the growth potential of companies operating in the domain of intelligent machines. Under normal market conditions, the fund invests at least 80% of its net assets in equity securities of companies that are relevant to its investment theme. These companies are primarily focused on, or are expected to significantly benefit from, the ongoing technology-driven transformation of products, software, systems, machinery, and related services, including advancements in artificial intelligence.

IQM ETF Underlying and Exposure: What Does It Track and How?

The primary focus of the IQM ETF lies on companies that represent the next phase of technological evolution in the domain of intelligent machines. This includes businesses that provide new systems, logistics solutions, methods, products, or services based on innovative technologies. The investment manager selects these companies based on "bottom-up" research and analysis, seeking to identify entities positioned to capitalize on disruptive innovation or enable further development in the intelligent machines market.

IQM overlap What is the  IQM ETF ?IQM overlap What is the IQM ETF ?

IQM ETF: Benefits to Invest in This ETF

Investing in the IQM ETF can offer several advantages. Firstly, it provides exposure to companies at the forefront of technological advancements in intelligent machines. As these companies continue to innovate, their growth potential may outpace that of the broader market. Moreover, the ETF offers diversification by investing across various economic sectors, although it has a significant focus on technology-related industries.

IQM ETF: Considerations Before Investing

While the IQM ETF presents exciting opportunities, investors should consider a few aspects before committing their capital. As with any investment, there are risks involved, and the value of the ETF's shares can fluctuate. Investors should carefully evaluate their risk tolerance and investment objectives to ensure that the IQM ETF aligns with their financial goals.


The IQM ETF offers a compelling opportunity for investors to participate in the growth potential of companies driving the intelligent machines revolution. By leveraging innovative technologies and capitalizing on disruptive trends, these companies are well-positioned for future success. However, it's crucial to perform thorough due diligence and consider individual investment needs before making any financial decisions.

This article is for informational purposes only and does not constitute investment advice or any offer to buy or sell securities. The IQM ETF, like any other investment, carries inherent risks, and past performance does not guarantee future results. Investors are advised to consult with a qualified financial advisor before making any investment decisions. The author is not providing any investment advisory services.

IQM ETF issuer
IQM ETF official page

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  • What is the IQM ETF?

    The IQM ETF, also known as the iShares MSCI USA Quality Factor ETF, is an exchange-traded fund that aims to provide investors with exposure to high-quality U.S. stocks.

  • What is the underlying index that the IQM ETF aims to track?

    The IQM ETF seeks to track the performance of the MSCI USA Quality Index, which consists of large and mid-cap U.S. companies that have a strong track record of stable earnings and other quality factors.

  • What types of companies are included in the IQM ETF?

    The IQM ETF includes companies with strong fundamentals, such as companies with stable and predictable earnings, low debt levels, and consistent profitability. These companies are considered to have a higher quality compared to their peers.

  • How does the IQM ETF work?

    The IQM ETF operates by investing in a diversified portfolio of U.S. stocks that meet specific quality criteria based on the underlying index. The ETF aims to replicate the performance of the index by holding a selection of these high-quality companies.

  • What are the advantages of investing in the IQM ETF?

    Investing in the IQM ETF provides exposure to a basket of high-quality U.S. companies, which may offer more stable performance and potentially lower risk compared to the broader market. It can be a way to gain exposure to companies with strong financials and potential for long-term growth.