Invesco S&P SmallCap Value with Momentum ETF

Invesco S&P SmallCap Value with Momentum ETF (XSVM) is an index fund holding about 120 small US companies from the S&P SmallCap 600. To get in, a stock must look cheap compared with its book value, earnings and sales, and its share price must have gained more than its peers' over the past year. That two-step screen sets it apart from plain small-cap value funds. So does its cost: 0.36% a year, against 0.10% to 0.18% for the large S&P 600 value index funds.

• Over the year to Oct 27, 2026, XSVM returned +22.1%, 2nd of 9 among similar funds.
• Its 5-year annualized return was +7.5%.
• Its worst full calendar year was 2022 (-13.6%); its best was 2021 (+56.4%).
• The deepest fall in its price history was 26.2% (Nov 25, 2024 to Apr 8, 2025), recovered by Dec 11, 2025.

As of Jul 31, 2026, the fund held 118 securities; the ten largest made up 15.15% of assets. It also reported 16.83% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors added a net $12.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.57%, +5.31%, +2.28%.

XSVM tracks the S&P SmallCap 600 High Momentum Value Index, which S&P Dow Jones Indices builds and maintains. It starts with the S&P SmallCap 600 and gives each stock a value score based on three ratios. These are book value to price, the last 12 months of earnings to price, and the last 12 months of sales to price. A higher ratio means the stock is cheaper compared with the size of the business. The index keeps the 240 stocks with the highest value scores.

Next, it ranks those 240 stocks by momentum. Momentum is a stock's price change over the past 12 months, leaving out the latest month, adjusted for how much the price swung. The top 120 generally make the index. Each stock is weighted by its value score, not by company size, so the cheapest-looking stocks get the largest weights. As of June 30, 2026, the index held 118 stocks, with market values from $778 million to $9.4 billion.

Invesco uses full replication. That means the fund buys nearly every stock in the index, in the same proportions. It trades only when the index changes, even if a stock is lagging. Because momentum rankings shift, portfolio turnover was 84%. That is high for an index fund, and trading costs are not included in the expense ratio. As of April 30, 2026, the fund had heavy exposure to financial stocks.

• XSVM charges 0.36% a year, versus an average of 0.31% for the similar funds below (7th of 9, cheapest first).
• Of that, 0.29% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $37 in the first year and $456 over 10 years (assuming a 5% annual return).

It concentrates on small, cheap stocks whose prices have been rising, and it has swung sharply at times, so it may fit better as a smaller add-on than as a foundation.

XSVM could add small-company and value exposure that large-cap index funds lack. The swings can be steep. It lost 40.5% in the first quarter of 2020, its worst quarter in the prospectus record, but still finished 2020 up 5.03%. From March to September 2022 it fell 25.3%, and it took 14.6 months to recover. Its deepest drop since June 2020 was 26.2%, from November 2024 to April 2025. It recovered by December 2025. Figures for the 2008 crisis are not covered here. Its worst calendar year from 2016 to 2025 was 2022, at -13.55%.

Anyone who has to sell shares during a drop like these would lock in losses. Income is modest: the trailing yield was 1.87% as of October 27, 2026, paid quarterly. The expense ratio is 0.36%. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

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