At a glance
XSHQ charges 0.29% a year, above the 0.27% average of the 8 funds most like it (the 5th cheapest of 9). It has $237.4M in assets, the 5th largest of that group; it paid 1.19% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +7.8% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds; over three years it returned +12.6% a year. At its worst it fell 24.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 18 months after the low. Its ten largest positions make up 24.2% of the fund, out of 115 in all.
The short version
Invesco S&P SmallCap Quality ETF (XSHQ) is an index fund that holds about 120 small US companies from the S&P SmallCap 600 that score highest on profitability, earnings quality and low debt. It may appeal to investors who want small-company stocks with a filter for sturdier finances. Its 0.29% expense ratio is higher than plain S&P 600 growth funds such as Vanguard's VIOG at 0.10%. Its returns also trailed those funds through October 27, 2026.
Price history
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XSHQ +7.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XSHQ official prospectus, to Dec 31, 2024 | — | +7.45% | — | +9.37% | — | +8.83% |
| XSHQ price data to Oct 27, 2026 | +10.6% | +7.8% | +12.6% | +6.0% | — | +11.8% |
- Over the year to Oct 27, 2026, XSHQ returned +7.8%, 9th of 9 among similar funds.
- Its 5-year annualized return was +6.0%.
- Its worst full calendar year was 2022 (-15.0%); its best was 2021 (+24.0%).
- The deepest fall in its price history was 27.3% (Nov 25, 2024 to Apr 8, 2025), recovered by Jun 11, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.6% | — |
| 2025 | +0.9% | — |
| 2024 | +7.5% | +7.45% |
| 2023 | +23.9% | +23.92% |
| 2022 | -15.0% | -15.25% |
| 2021 | +24.0% | +24.66% |
| 2020 | — | +11.26% |
| 2019 | — | +17.43% |
| 2018 | — | -6.06% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 20.1% over that stretch · deepest drop along the way 24.3%, back to its old high 17.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3100 | |
| 2025 | $0.6300 | +26.0% |
| 2024 | $0.5000 | +6.4% |
| 2023 | $0.4700 | -28.8% |
| 2022 | $0.6600 | +32.0% |
| 2021 | $0.5000 |
What's inside
As of May 31, 2026, the fund held 115 securities; the ten largest made up 24.16% of assets. It also reported 22.69% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Sanmina Corp. | 3.24% | |
| Clear Secure, Inc. | 2.84% | |
| Brinker International, Inc. | 2.68% | |
| TG Therapeutics, Inc. | 2.25% | |
| Enphase Energy, Inc. | 2.25% | |
| Everus Construction Group, Inc. | 2.24% | |
| Armstrong World Industries, Inc. | 2.19% | |
| Qorvo, Inc. | 2.17% | |
| PJT Partners Inc. | 2.17% | |
| Powell Industries, Inc. | 2.14% | |
| Moelis & Co. | 2.10% | |
| MYR Group Inc. | 1.85% | |
| Alkermes PLC | 1.84% | |
| Zurn Elkay Water Solutions Corp. | 1.80% | |
| Federal Signal Corp. | 1.67% |
By country
United States 100.8%Puerto Rico 1.87%Ireland 1.84%Marshall Islands 0.37%By asset type
Stocks 104.88%What changed recently
- Over the three months to May 31, 2026, investors withdrew a net $17.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -4.50%, +8.34%, +0.31%.
How it works
XSHQ seeks to track the S&P SmallCap 600 Quality Index from S&P Dow Jones Indices. Each stock in the S&P SmallCap 600, about 600 smaller US companies, gets a "quality score." It averages three measures: return on equity (profit relative to the owners' stake), the accruals ratio (how much earnings rest on accounting entries rather than cash) and financial leverage (debt relative to that stake). Financial and real estate firms skip the accruals test.
About 120 top scorers make the index. Each is weighted by its quality score times its market value (the total worth of its shares), within limits for single stocks and sectors, so large, high-scoring companies tend to weigh most. As of October 31, 2025, the index's 120 stocks ranged from $384.4 million to $11.5 billion in market value.
Invesco generally buys every index stock in proportion to its weight (full replication), keeping at least 90% of assets in index stocks. It does not sell a lagging stock unless the index drops it. As of May 31, 2026, the fund held 115 stocks, led by Sanmina (3.2%), Clear Secure (2.8%) and Brinker International (2.7%). Portfolio turnover was 69% per the December 2025 prospectus, high for an index fund. Trading costs from that churn are not included in the 0.29% expense ratio.
What it really costs
- XSHQ charges 0.29% a year, versus an average of 0.27% for the similar funds below (5th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $30 in the first year and $368 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XSHQ | $30 | $93 | $163 | $368 |
In a retirement portfolio
It is a focused bet on small-company stocks with a quality filter, and it has swung more sharply than a broad core fund.
XSHQ could add exposure to small, profitable, lower-debt US companies alongside a large-company core. Its record shows the swings that come with small caps. It lost 25.29% in the quarter ended March 31, 2020. Its worst calendar year was 2022, at -15.25%. Between January 4 and June 16, 2022, it fell 24.3% and took about 18 months to recover. Its deepest drop was 27.3%, from November 2024 to April 2025, and it did not recover until June 11, 2026. Anyone who had to sell shares during those stretches would have locked in losses. The fund launched in 2017, so it has no record from 2008. Its yield was 1.19% as of October 27, 2026, paid quarterly. That is too small to cover much spending. In the SEC's standard example, costs on $10,000 come to $368 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want small US companies screened for return on equity, earnings quality and low debt rather than the full S&P SmallCap 600.
- Long-term investors with a large-company core who want a small-cap satellite and can sit through drops like the 27.3% fall from late 2024 into 2025.
- People who see income as a side benefit; the fund pays quarterly, with a trailing yield of 1.19% as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: VIOG charges 0.10%, SLYG 0.15% and IJT 0.18%, compared with XSHQ's 0.29%.
- Investors drawn by recent returns: XSHQ ranked last of nine similar small-cap funds over one and three years through October 27, 2026.
- Retirees who may need to sell soon: recovering from the 2022 drop took about 18 months, and recovering from the 2024–2025 drop took about 14.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XSHQ this fund | — | 0.29% | $237.4M | +7.8% | +12.6% |
| GRPZ Invesco S&P SmallCap 600 GARP ETF | 33% | 0.35% | $3.3M | +17.6% | — |
| VIOG Vanguard S&P Small-Cap 600 Growth ETF | 27% | 0.1% | $1.09B | +14.5% | +17.9% |
| SLYG SPDR S&P 600 Small Cap Growth ETF | 27% | 0.15% | $5.20B | +14.6% | +17.7% |
| IJT iShares S&P Small-Cap 600 Growth ETF | 27% | 0.18% | $8.22B | +14.4% | +17.7% |
| CAFG Pacer US Small Cap Cash Cows Growth Leaders… | 26% | 0.59% | $30.2M | +31.3% | +21.3% |
| RZG Invesco S&P SmallCap 600® Pure Growth ETF | 25% | 0.35% | $137.8M | +12.4% | +18.8% |
| QVMS Invesco S&P SmallCap 600 QVM Multi-factor E… | 23% | 0.15% | $248.2M | +17.1% | +18.9% |
Questions investors ask
What does XSHQ invest in?
XSHQ owns about 120 small US companies picked from the S&P SmallCap 600 by S&P Dow Jones Indices' quality score. The score is based on return on equity, an accruals ratio and debt. As of May 31, 2026, the fund held 115 stocks, and the ten largest made up about 24% of assets. The largest were Sanmina, Clear Secure, Brinker International, TG Therapeutics and Enphase Energy, each between about 2.2% and 3.2%.
What is XSHQ's expense ratio?
XSHQ's expense ratio is 0.29%, according to its prospectus filed December 18, 2025. In the SEC's standard example, $10,000 invested with a 5% yearly return would cost about $30 in the first year, $163 over five years and $368 over ten. That is slightly above the 0.27% average of similar small-cap funds. It ranks fifth cheapest of nine, and Vanguard's VIOG charges 0.10%.
Does XSHQ pay dividends?
Yes. XSHQ pays dividends quarterly. Over the 12 months to October 27, 2026, it paid about $0.55 per share, for a trailing yield of 1.19%. The payout depends on the dividends the underlying small companies pay, so it can rise or fall. Most of the fund's long-term return has come from price changes rather than income, so it is not built as an income fund.
XSHQ vs VIOG: what's the difference?
Both funds pick stocks from the S&P SmallCap 600, but they screen them differently. XSHQ picks about 120 stocks by quality score, while VIOG follows the index's growth stocks. About 27% of their holdings overlap. VIOG costs 0.10% against XSHQ's 0.29%, and it is much larger, with about $1.09 billion in net assets. Through October 27, 2026, VIOG returned 14.5% over one year and 17.9% a year over three years. XSHQ returned 7.8% and 12.6% over the same periods.
How has XSHQ performed over the long term?
Its returns have been positive but uneven. As of December 31, 2024, the prospectus showed average yearly returns of 7.45% over one year, 9.37% over five years and 8.83% since its 2017 launch. Its calendar-year returns ranged from 24.66% in 2021 to -15.25% in 2022. Based on market prices, it returned 0.9% in 2025 and 10.6% in 2026 through October 27. That works out to 6% a year over five years.