Equity | US Equity

Invesco S&P SmallCap Quality ETF

Ticker: XSHQ

Product Details

The Invesco S&P SmallCap Quality ETF (Fund) is based on the S&P SmallCap 600® Quality Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index is composed of 120 securities in the S&P SmallCap 600® Index that have the highest quality score, which is calculated based on the average of three fundamental measures: return on equity, accruals ratio and financial leverage ratio. The Fund and the Index are rebalanced and reconstituted semi-annually on the third Friday of June and December.

XSHQ: A closer look at quality

as of 07/29/2022

Factor DNATM

Source: Axioma, Inc.

Factor score methodology

Axioma is used to calculate the data that goes into the charts. We use Axioma's global short time horizon risk model.

The current factor exposures of the ETF relative to its benchmark index are shown using the bars in the chart. Each factor's band indicates the +/- one standard deviation exposure of the fund to that factor over the past three years.

The bar color is determined by comparing the number of standard deviations the current exposure is from the average three-year exposure. Higher exposures are a bright color, while lower exposures are a dark color.

See notes below for factor definitions.

Factor definitions

Value: Book to price; Small size: Natural log of the total issuer market capitalization average over the last month. Companies with a smaller market cap receive a higher score; Profitability: considers return-on-equity, return-on-assets, cash-flow-to-assets, cash-flow-to-income, gross margin and sales-to-assets; Momentum: cumulative return over last 20 days; Low Volatility: square root of 60-day average of absolute return / cross sectional market volatility. Lower volatility stocks receive a higher score; Leverage: equal weight average of debt-to-assets and debt-to-equity; Growth: equal weight average of earnings growth rate and the sales growth rate; Dividend Yield: trailing 12-month dividend yield.

as of 07/29/2022

Factor DNATM

Factor score methodology

Axioma is used to calculate the data that goes into the charts. We use Axioma's global short time horizon risk model.

The current factor exposures of the ETF relative to its benchmark index are shown using the bars in the chart. Each factor's band indicates the +/- one standard deviation exposure of the fund to that factor over the past three years.

The bar color is determined by comparing the number of standard deviations the current exposure is from the average three-year exposure. Higher exposures are a bright color, while lower exposures are a dark color.

See notes below for factor definitions.

Factor definitions

Value: Book to price; Small size: Natural log of the total issuer market capitalization average over the last month. Companies with a smaller market cap receive a higher score; Profitability: considers return-on-equity, return-on-assets, cash-flow-to-assets, cash-flow-to-income, gross margin and sales-to-assets; Momentum: cumulative return over last 20 days; Low Volatility: square root of 60-day average of absolute return / cross sectional market volatility. Lower volatility stocks receive a higher score; Leverage: equal weight average of debt-to-assets and debt-to-equity; Growth: equal weight average of earnings growth rate and the sales growth rate; Dividend Yield: trailing 12-month dividend yield.

as of 09/30/2022 09/30/2022

Performance

Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
S&P SmallCap 600 Quality Index -21.76 -15.66 5.24 4.77 N/A 5.72
S&P SmallCap 600 Index -23.16 -18.83 5.48 4.84 10.09 6.22
Fund History (%)
Fund NAV -21.95 -15.91 4.92 4.41 N/A 5.35
After Tax Held -22.37 -16.51 4.39 3.98 N/A 4.94
After Tax Sold -12.96 -9.27 3.65 3.33 N/A 4.09
Fund Market Price -22.01 -15.90 4.99 4.46 N/A 5.41
Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
S&P SmallCap 600 Quality Index -21.76 -15.66 5.24 4.77 N/A 5.72
S&P SmallCap 600 Index -23.16 -18.83 5.48 4.84 10.09 6.22
Fund History (%)
Fund NAV -21.95 -15.91 4.92 4.41 N/A 5.35
After Tax Held -22.37 -16.51 4.39 3.98 N/A 4.94
After Tax Sold -12.96 -9.27 3.65 3.33 N/A 4.09
Fund Market Price -22.01 -15.90 4.99 4.46 N/A 5.41

Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects applicable fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV. Returns less than one year are cumulative.

as of 09/30/2022

Growth of $10,000

Data beginning 10 years prior to the ending date of 09/30/2022. Fund performance shown at NAV.

S&P 500 High Quality Rankings Index* performance prior to 6/30/2010 reflects that of the original Underlying Index Value Line Timeliness Select Index. From 6/30/2010 to 3/18/2016, Index performance reflects that of the previous Underlying Index, S&P 500 High Quality Rankings Index. From 3/18/2016 forward, the Index performance reflects that of the Underlying Index, S&P 500 Quality Index AND IS NOT INTENDED FOR ANY THIRD PARTY USE.

An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.

as of 10/05/2022

Sector Allocation

Sector Percent of Fund
Financials 40.75%
Industrials 17.10%
Consumer Discretionary 15.43%
Information Technology 9.74%
Health Care 8.68%
Consumer Staples 2.64%
Materials 2.55%
Real Estate 2.15%
Communication Services 0.74%
Energy 0.21%
Investment Companies 0.00%
as of 10/04/2022

Market Cap & Style Allocations

Large-Cap Value -
Large-Cap Blend -
Large-Cap Growth -
Mid-Cap Value -
Mid-Cap Blend 5.59%
Mid-Cap Growth -
Small-Cap Value 34.81%
Small-Cap Blend 41.74%
Small-Cap Growth 17.86%

as of 10/05/2022 Top Holdings | View All

Fund Holdings subject to change

Ticker Company % of Fund
EXPO Exponent Inc 2.97
UCBI United Community Banks Inc/GA 2.62
AMN AMN Healthcare Services Inc 2.61
ABCB Ameris Bancorp 2.29
AIT Applied Industrial Technologies Inc 1.94
MLI Mueller Industries Inc 1.94
FBP First BanCorp/Puerto Rico 1.88
CBU Community Bank System Inc 1.88
ASO Academy Sports & Outdoors Inc 1.86
FHB First Hawaiian Inc 1.81
The characterizations of distributions reflected in this table are as of the date noted below. The actual amounts of income, capital gains and return of capital for tax purposes are only determined after the Fund’s fiscal year end, and may differ from the amounts and characterizations reflected in the chart below. Please refer to the Tax Center for the most current and/or final characterizations of these distributions, including any distributions characterized as return of capital.

Distributions | HideView All | Distribution Information

Ex-Date Record Date Pay Date $/
Share
Ordinary Income Short Term Gains Long Term Gains Return of Capital Liquidation Distribution
09/19/2022 09/20/2022 09/23/2022 0.12452 0.12452 - - - -
06/21/2022 06/22/2022 06/30/2022 0.16632 0.16632 - - - -
03/21/2022 03/22/2022 03/31/2022 0.15862 0.15862 - - - -
12/20/2021 12/21/2021 12/31/2021 0.24784 0.24784 - - - -
09/20/2021 09/21/2021 09/30/2021 0.11638 0.11638 - - - -
06/21/2021 06/22/2021 06/30/2021 0.07000 0.07000 - - - -
03/22/2021 03/23/2021 03/31/2021 0.05659 0.05659 - - - -
12/21/2020 12/22/2020 12/31/2020 0.09087 0.09087 - - - -
09/21/2020 09/22/2020 09/30/2020 0.12158 0.12158 - - - -
06/22/2020 06/23/2020 06/30/2020 0.05655 0.05655 - - - -
03/23/2020 03/24/2020 03/31/2020 0.12838 0.12838 - - - -
12/23/2019 12/24/2019 12/31/2019 0.13333 0.13333 - - - -
09/23/2019 09/24/2019 09/30/2019 0.03421 0.03421 - - - -
06/24/2019 06/25/2019 06/28/2019 0.09270 0.09270 - - - -
03/18/2019 03/19/2019 03/29/2019 0.06354 0.06354 - - - -
12/26/2018 12/27/2018 12/31/2018 - - 0.00486 - - -
12/24/2018 12/26/2018 12/31/2018 0.11590 0.11590 - - - -
09/24/2018 09/25/2018 09/28/2018 0.06673 0.06673 - - - -
06/18/2018 06/19/2018 06/29/2018 0.04409 0.04409 - - - -
03/19/2018 03/20/2018 03/29/2018 0.05865 0.05865 - - - -
12/18/2017 12/19/2017 12/29/2017 0.11569 0.11569 - - - -
09/18/2017 09/19/2017 09/29/2017 0.04758 0.04758 - - - -
06/16/2017 06/20/2017 06/30/2017 0.04855 0.04855 - - - -

Frequency Distribution of Discounts & Premiums

    Bid/Ask MidPoint Above NAV
Quarter
Ending
Days 0.00-
0.25%
0.26-
0.50%
0.51-
0.99%
1.00-
1.49%
1.50-
1.99%
≥2.00%
09/30/2022 64 30 9 0 0 0 0
06/30/2022 62 15 2 0 0 0 0
03/31/2022 62 31 4 0 0 0 0
12/31/2021 64 34 6 1 0 0 0
Year Ended 2021 252 101 24 16 1 1 0
    Bid/Ask Midpoint Below NAV
Quarter
Ending
Days 0.00-
0.25%
0.26-
0.50%
0.51-
0.99%
1.00-
1.49%
1.50-
1.99%
≥2.00%
09/30/2022 64 21 4 0 0 0 0
06/30/2022 62 39 6 0 0 0 0
03/31/2022 62 19 7 1 0 0 0
12/31/2021 64 22 1 0 0 0 0
Year Ended 2021 252 91 16 2 0 0 0

Fund Inception : 04/06/2017

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results.

Premiums/Discounts

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results.

 Risk & Other Information

Typically, security classifications used in calculating allocation tables are as of the last trading day of the previous month.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.

Stocks of small-capitalization companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale than large companies.

Investments focused in a particular sector, such as financials, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

The Fund may become “non-diversified”, as defined under the Investment Company Act of 1940, as amended, solely as a result of a change in relative market capitalization or index weighting of one or more constitutes of the Index. Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified status under such circumstances.

S&P SmallCap 600® Index is a market-value weighted index considered representative of small-cap US stocks.

The Global Industry Classification Standard was developed by and is the exclusive property and a service mark of MSCI, Inc. and Standard & Poor's.

S&P 500 Quality Index is designed to track high quality stocks in the S&P 500 Index by quality score, which is calculated based on return on equity, accruals ratio and financial leverage ratio.

S&P 600 Quality Index is designed to track high quality stocks in the S&P SmallCap 600 Index by quality score, which is calculated based on return on equity, accruals ratio and financial leverage ratio.

S&P 500 Enhanced Value Index tracks the performance of the stocks in the S&P 500 Index that have the highest value score.

The accrual ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Price-to-book ratio is the market price of a stock divided by the book value per share.

Price-to-earnings ratio is the market price of a stock divided by the earnings per share.

Price-to-sales ratio is the total market capitalization of a stock divided by its annual revenue.

Return on equity is a measure of profitability, calculated as net income as a percentage of shareholders’ equity.

Financial leverage refers to the use of debt to acquire additional assets.

Volatility is the annualized standard deviation of monthly index returns.

A z-score (aka, a standard score) indicates how many standard deviations an element is from the mean.

Factor investing is an investment strategy in which securities are chosen based on attributes that have been associated with higher returns.

Quality seeks to capture excess returns through stocks characterized by indicators of quality – high return on equity, stable to strong earnings growth, balance sheet health, and other measures of financial strength.

Low volatility seeks to capture excess returns over time through stock with lower than average volatility, beta, and/or idiosyncratic risk.

Momentum seeks to capture excess returns through stocks with historically strong past performance compared to their peers.

Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.

Relative to the S&P 500, three-year tracking error for quality, as represented by the S&P 500 Quality Index, is 1.93%, compared with low volatility (S&P 500 Low Volatility Index) 6.45%, momentum (S&P 500 Momentum Index) 4.83%, value (S&P 500 Enhanced Value Index) 6.89%, small size (S&P 500 Equal Weight Index) 2.81%, and dividend yield (S&P 500 Low Volatility High Dividend Index) 7.23%. Source: Bloomberg, LP, as of June 30, 2018.

S&P® is a registered trademark of Standard & Poor's Financial Services LLC (S&P) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and Standard & Poor's® are trademarks of S&P and Dow Jones® is a trademark of Dow Jones. These trademarks have been sublicensed for certain purposes by Invesco Capital Management LLC. The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Invesco. The Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s).

© 2021 Axioma, Inc. All Rights Reserved. The information, data, analyses and opinions (“Information”) contained herein: (1) include the proprietary information of Axioma; (2) may not be copied or redistributed except as specifically authorized; (3) do not constitute financial, investment, or legal advice; (4) are provided solely for informational purposes; and (5) are not warranted to be complete, accurate or timely. Axioma is not responsible for any trading decisions, damages or other losses related to the Information or its use. Information should be verified before use and should not be acted upon without first obtaining specific legal, tax, and investment advice from a licensed professional. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up.