USCA vs XSMO

USCAAXtrackers MSCI USA Climate Action Equity ETF

XSMOCInvesco S&P SmallCap Momentum ETF

In short

USCA The largest US ETF debut on record when it launched in 2023, seeded by a Finnish pension fund. It owns roughly 400 US large- and mid-caps, keeping only the top half of each sector on MSCI's climate-transition scoring, for 0.07% a year.

XSMO Momentum, but only among small caps that actually make money. XSMO rides the strongest performers in the S&P SmallCap 600, weighted by momentum score and reshuffled twice a year, for 0.35% with no fee waiver in place.

Stated mandate

USCA The fund seeks to track the MSCI USA Climate Action Index before fees and expenses through a passive indexing strategy. The index selects U.S. large- and mid-capitalization companies assessed as leading sector peers in climate-transition positioning and actions.

XSMO The fund is based on the S&P Smallcap 600 Momentum Index and invests at least 90% of total assets in the index's component securities.

Why people hold it

• USCA Costs 0.07% a year against a typical screened US equity peer near 0.28%, and undercuts bigger ESG names like SUSA at 0.25%.
• No blanket sector bans: the index keeps the top 50% of companies in each GICS sector, so energy and industrials stay in, represented by their climate-transition leaders.dws.commsci.com
• Rules do the picking. MSCI's climate metrics, ESG ratings and controversy screens set the roster; no manager discretion, no stock-by-stock calls.dws.com
• A multi-billion-dollar fund with an institutional anchor investor from day one, and it pays quarterly.businesswire.com

• XSMO S&P demands positive earnings in the latest quarter and the trailing four combined before a stock joins the SmallCap 600, so momentum is drawn from profitable companies.spglobal.com
• Weighting is float-adjusted market cap times momentum score, so the strongest trends carry the heaviest weight instead of every winner getting an equal slice.spglobal.com
• Listed in 2005 and now a multi-billion-dollar fund, it has run through several full market cycles rather than one hot stretch.
• Plain mandate: at least 90% of assets in the index's own components, no discretionary side bets.invesco.com

Worth knowing

• USCA Half of each sector is screened out, so results can drift from a plain MSCI USA index fund in either direction.dws.com
• Market-cap weighted and filed as non-diversified, so America's largest companies carry heavy weight at the top.dws.com
• Moderately traded next to the giants of US equity, so spreads can be a bigger part of the cost of getting in and out.

• XSMO About 110 names, tilted toward the hottest movers, so the ride is bumpier than a broad small-cap index.spglobal.com
• The index reshuffles in March and September, so names whose trend breaks mid-period stay put until the next rebalance.spglobal.com
• At 0.35% with no fee waiver, it sits near the category median, above plainer factor options like SIZE at 0.15% or MGV at 0.05%.

Full USCA profile⁠

Full XSMO profile⁠