Category Review
Cash-flow quality returned 42% while QUAL returned 17%
Invesco S&P SmallCap Quality ETF
$45.95+0.06 (+0.13%)
- 0.29%
- $292M
- +13.0%
- 1.21%
- 0M sh
- $45.95
- low $40.02high $50.36
The ETF.net XSHQ Grade
B
Score 56 out of 100
- 13 of 26
Score 56 of 100 falls in the B band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.B60 out of 100Rank 11 of 26Mission
Whether the fund did what it promised, tested against its stated mandate.B65 out of 100Rank 15 of 19Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.D25 out of 100Rank 22 of 26Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.C51 out of 100Rank 13 of 26Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A73 out of 100Rank 6 of 26Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.B61 out of 100Rank 11 of 26
Our read on XSHQ
BMost quality ETFs shop the S&P 500. XSHQ works the small-cap aisle: start with an index that already requires positive earnings, then keep the roughly 120 names scoring best on profits, accruals and leverage.
The Fund seeks to track, before fees and expenses, the price and yield performance of the S&P SmallCap 600 Quality Index.
Why people hold it
- Quality is a formula, not a vibe: names ranked on return on equity, accruals ratio and financial leverage, weighted by score times market cap, reset each June and December.invesco.comspglobal.com
- The starting pool is already picky: S&P 600 membership requires positive earnings in the latest quarter and across the trailing four, so chronic money-losers never reach the screen.sec.gov
- Live since 2017, and no other fund in its quality-factor peer group tracks this index. It is the small-cap specialist in a lineup built around blue chips.
- Holdings line up closely with what the label promises, and the fund sits in the upper half of its quality-factor peer group. It pays quarterly.
Worth knowing
- At 0.29% it runs about double the big large-cap quality funds (JQUA 0.12%, QUAL 0.15%), though that is right at the median for the wider quality group.
- Trades thinly next to the large-cap quality names, so spreads can widen at the open and close.
- Small caps swing harder than blue chips, and the screen narrows to about 120 names, so one company's stumble carries more weight.
XSHQ Holdings
- Stocks
- 117
- 22%
- PAYC
Sectors
- Financials25.7%
- Technology23.7%
- Industrials18.2%
- Consumer Discretionary11.2%
- Materials4.9%
- Energy4.7%
- Health Care4.6%
- Communication4.3%
- Consumer Staples2.8%
Geography
- United States96.24%
- Bermuda1.67%
- Puerto Rico1.54%
- Bahamas0.55%
XSHQ Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
Not enough history yet.
XSHQ$11,297
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | XSHQ |
|---|---|
| Year to date | +9.8% |
| 1 month | −2.0% |
| 3 months | −3.4% |
| 1 year | +13.0% |
| 3 years | +10.6% |
| 5 years | +5.7% |
| 10 years | — |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | XSHQ |
|---|---|---|
| 2026 YTD | +9.8% | |
| 2025 | +0.9% | |
| 2024 | +7.5% | |
| 2023 | +23.9% | |
| 2022 | −15.0% | |
| 2021 | +24.0% | |
| 2020 | +11.9% |
XSHQ in the news
XSHQ Dividends
- 1.21%
- $0.55
- $0.12 per share
- Quarterly
Distribution history
XSHQ Risk
- 17.9%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- 0.34
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −27.4%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.95
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
XSHQ Cost
0.29%
XSHQ0.29%
- The middle half of US Quality Index funds
- Median 0.39%
10 of the 26 US Quality Index funds charge less.
Other funds in US Quality Index
- BVUSEVident U.S. Equity Strategy ETFExpense ratio 0.50%1 year return +13.7%
- BDGRSWisdomTree U.S. SmallCap Quality Dividend Growth FundExpense ratio 0.38%1 year return +19.5%
- BAVUQAvantis U.S. Quality ETFExpense ratio 0.15%1 year return +18.6%
- CLCOWPacer Funds Trust - Pacer S&P 500 Quality FCF Aristocrats ETFExpense ratio 0.49%1 year return +21.5%
- CQOWZInvesco Nasdaq Free Cash Flow Achievers ETFExpense ratio 0.39%1 year return +5.5%