This is an actively managed ETF that follows the intelligent machines theme, investing most of its net assets in companies tied to robotics, autonomous driving, and data analytics. It does not replicate a specific index. Instead, the management team selects the holdings.

It suits thematic investors who want broad exposure to the benefits of the spread of artificial intelligence and automation.

The ETF is run with an active management approach by Franklin Templeton.

The management team directly identifies and adds companies with a large share of their business in intelligent machines, such as robotics, autonomous driving, industrial automation, and data analytics. A cross-sector mix spanning semiconductor, industrial, and software companies is a defining feature, and because the fund does not follow a fixed index, position weights are adjusted according to market conditions.

• Active stock selection rather than a fixed index
• Cross-sector mix spanning semiconductors and industrials

Assets under management (AUM) are $74.4M, and the expense ratio is 0.50% per year.

The similar thematic ETFs shown alongside it in the table differ in their holdings and management approach, so a direct comparison is needed.

The ETF tends to move in step with large technology stocks tied to artificial intelligence and automation, and short-term volatility can widen during periods of sector rotation in semiconductors and industrials or shifts in market sentiment.

As is typical for a thematic active ETF, fund flows can swing depending on market interest in artificial intelligence and robotics, and the fund tends to react sensitively to news in related industries.

Its strength is actively managed exposure to the intelligent machines theme, while the cost of active management and thematic volatility are points to watch.

ETFs shown alongside it in the table, such as FWD, INFL, FEOE, MGNR, and GEME, each pursue different active or thematic strategies, so they differ in expense levels and management approach. Robotics and automation theme ETFs closely related to intelligent machines include BOTZ and ROBO. For more focused exposure to artificial intelligence infrastructure, you can also consider the semiconductor-focused SMH or the large-cap technology-focused XLK.

Here are the points to review before investing in IQM. Given the nature of an active thematic ETF, it is advisable to weigh the expense level, theme concentration, management performance, and market volatility together before deciding whether to invest.

The intelligent machines theme is sensitive to related technology news and market sentiment, and it can fall along with large technology stocks during corrections. Investors should also keep in mind that active management results may fall short of expectations.

It is a suitable choice for investors who want active exposure to the spread of artificial intelligence, robotics, and automation. Given the cost burden and thematic volatility, approaching it with a long-term perspective is advisable.