Invesco S&P SmallCap 600 QVM Multi-factor ETF

Invesco S&P SmallCap 600 QVM Multi-factor ETF (QVMS) owns US small-company stocks from the S&P SmallCap 600. It leaves out the 10% that score worst on a blend of quality, value and momentum, and it held 530 stocks as of August 31, 2026. Because the screen is light, the fund stays close to a plain small-cap index fund. It charges 0.15% a year. Vanguard's VIOO (0.07%) and SPDR's SPSM (0.03%) track the full index for less.

• Over the year to Oct 27, 2026, QVMS returned +17.1%, 6th of 9 among similar funds.
• Its 5-year annualized return was +7.4%.
• Its worst full calendar year was 2022 (-14.6%); its best was 2023 (+16.9%).
• The deepest fall in its price history was 28% (Nov 25, 2024 to Apr 8, 2025), recovered by Jan 8, 2026.

As of Aug 31, 2026, the fund held 530 securities; the ten largest made up 6.16% of assets. It also reported 21.79% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Aug 31, 2026, investors added a net $684K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +7.85%, -2.40%, -0.94%.

QVMS is an index fund. It follows the S&P SmallCap 600 Quality, Value & Momentum Top 90% Multi-Factor Index, which S&P Dow Jones Indices builds and maintains. The index starts with the S&P SmallCap 600 and gives each stock three scores. The quality score uses return on equity (profit compared with shareholders' money), the accruals ratio (how much of reported earnings comes from accounting entries rather than cash) and financial leverage (how much debt a company carries). The value score compares book value, earnings and sales with the share price. The momentum score looks at how the stock's price has moved over a set past period, adjusted for risk.

The three scores are averaged. The stocks in the top 90%, about 540 companies, generally make it into the index. They are then weighted by float-adjusted market value. That means bigger companies get bigger weights, counting only shares the public can trade. As of October 31, 2025, the index had 535 stocks, ranging from $373.6 million to $29.2 billion in market value.

The fund uses full replication: it buys every stock in the index at roughly the index's weights. It keeps at least 90% of its assets in those stocks. It does not sell a lagging stock unless the index drops it. Portfolio turnover was 35%. As of August 31, 2026, it held no derivatives and used no leverage or options.

• QVMS charges 0.15% a year, versus an average of 0.1% for the similar funds below (7th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).

This is a small-company stock fund with a 28% peak-to-trough drop and a short record, so it fits better next to a broad core holding than as one.

QVMS can add US small-company stocks to a portfolio built mostly on large companies. Its record is short. It launched June 30, 2021, so it missed the 2008 crisis and the 2020 crash. In the 2022 bear market it fell 23.8%, and it didn't regain its peak until March 27, 2024. Its deepest drop, 28%, ran from November 25, 2024 to April 8, 2025, and it took until January 8, 2026 to recover. Anyone selling shares to pay bills during stretches like those would lock in losses. Income is small: the trailing yield was 1.28% as of October 27, 2026, paid quarterly. In the SEC's standard example, $10,000 invested costs $15 in fees in year one and $192 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.