IWO vs. XSHQ

Last updated Jun 4, 2026

IWO (iShares Russell 2000 Growth ETF) and XSHQ (Invesco S&P SmallCap Quality ETF) are both Small Cap Growth Equities funds - IWO tracks the Russell 2000 Growth Index while XSHQ tracks the S&P SmallCap 600 Quality Index. Both are passively managed. Over the past 5 years, IWO returned 5.56%/yr vs 5.96%/yr for XSHQ. Their correlation of 0.82 suggests significant overlap in exposure. IWO charges 0.24%/yr vs 0.29%/yr for XSHQ.

Performance

IWO vs. XSHQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 Growth ETF (IWO) and Invesco S&P SmallCap Quality ETF (XSHQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IWO achieves a 16.75% return, which is significantly higher than XSHQ's 9.09% return.

IWO

• 1D: -1.41%
• 1M: 4.28%
• YTD: 16.75%
• 6M: 15.06%
• 1Y: 37.09%
• 3Y*: 18.01%
• 5Y*: 5.56%
• 10Y*: 11.23%

XSHQ

• 1D: -0.48%
• 1M: 1.37%
• YTD: 9.09%
• 6M: 8.27%
• 1Y: 15.18%
• 3Y*: 11.81%
• 5Y*: 5.96%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

IWO vs. XSHQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWO iShares Russell 2000 Growth ETF	16.75%	12.90%	15.04%	18.51%	-26.27%	2.54%	34.68%	28.48%	-9.43%	13.57%
XSHQ Invesco S&P SmallCap Quality ETF	9.09%	0.89%	7.49%	23.88%	-15.01%	23.99%	11.81%	17.37%	-6.11%	7.18%

Correlation

The correlation between IWO and XSHQ is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Aug 25, 2017	0.82

The correlation between IWO and XSHQ has been stable across timeframes, ranging from 0.79 to 0.86 - a consistent structural relationship.

IWO vs. XSHQ - Sectors Allocation Comparison

Sectors	IWO	XSHQ
Technology	23.6%	17.6%
Industrials	23.1%	21.1%
Healthcare	22.4%	8.0%
Financial Services	8.2%	24.0%
Consumer Cyclical	7.7%	16.3%
Basic Materials	4.2%	2.5%
Energy	3.5%	4.5%
Consumer Defensive	2.6%	4.0%
Communication Services	2.2%	1.0%
Real Estate	2.1%	0.9%
Utilities	0.7%	-

Return for Risk

IWO vs. XSHQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IWO

IWO Risk / Return Rank: 49
IWO Sharpe Ratio Rank: 50
IWO Sortino Ratio Rank: 49
IWO Omega Ratio Rank: 45
IWO Calmar Ratio Rank: 50
IWO Martin Ratio Rank: 52

XSHQ

XSHQ Risk / Return Rank: 26
XSHQ Sharpe Ratio Rank: 24
XSHQ Sortino Ratio Rank: 26
XSHQ Omega Ratio Rank: 23
XSHQ Calmar Ratio Rank: 30
XSHQ Martin Ratio Rank: 28

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IWO vs. XSHQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 Growth ETF (IWO) and Invesco S&P SmallCap Quality ETF (XSHQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	IWO	XSHQ	Difference
Sharpe ratio: Return per unit of total volatility	1.75	0.88	+0.87
Sortino ratio: Return per unit of downside risk	2.42	1.42	+1.00
Omega ratio: Gain probability vs. loss probability	1.29	1.16	+0.13
Calmar ratio: Return relative to maximum drawdown	2.51	1.48	+1.02
Martin ratio: Return relative to average drawdown	8.99	4.06	+4.94
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWO vs. XSHQ - Sharpe Ratio Comparison

The current IWO Sharpe Ratio is 1.75, which is higher than the XSHQ Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of IWO and XSHQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IWO	XSHQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	0.88	+0.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.28	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.37	-0.08

Drawdowns

IWO vs. XSHQ - Drawdown Comparison

The maximum IWO drawdown since its inception was -60.11%, which is greater than XSHQ's maximum drawdown of -38.33%. Use the drawdown chart below to compare losses from any high point for IWO and XSHQ.

Drawdown Indicators

	IWO	XSHQ	Difference
Max Drawdown Largest peak-to-trough decline	-60.11%	-38.33%	-21.78%
Max Drawdown (1Y) Largest decline over 1 year	-14.87%	-10.27%	-4.60%
Max Drawdown (3Y) Largest decline over 3 years	-28.57%	-27.34%	-1.23%
Max Drawdown (5Y) Largest decline over 5 years	-40.51%	-27.34%	-13.17%
Max Drawdown (10Y) Largest decline over 10 years	-42.02%	—	—
Current Drawdown Current decline from peak	-1.51%	-1.76%	+0.25%
Average Drawdown Average peak-to-trough decline	-16.71%	-9.35%	-7.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.14%	3.75%	+0.39%

Volatility

IWO vs. XSHQ - Volatility Comparison

iShares Russell 2000 Growth ETF (IWO) has a higher volatility of 6.61% compared to Invesco S&P SmallCap Quality ETF (XSHQ) at 4.57%. This indicates that IWO's price experiences larger fluctuations and is considered to be riskier than XSHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWO	XSHQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.61%	4.57%	+2.04%
Volatility (6M) Calculated over the trailing 6-month period	15.65%	11.66%	+3.99%
Volatility (1Y) Calculated over the trailing 1-year period	21.34%	17.43%	+3.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.48%	21.23%	+3.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.13%	23.13%	+1.00%

IWO vs. XSHQ - Expense Ratio Comparison

IWO has a 0.24% expense ratio, which is lower than XSHQ's 0.29% expense ratio.

Dividends

IWO vs. XSHQ - Dividend Comparison

IWO's dividend yield for the trailing twelve months is around 0.40%, less than XSHQ's 1.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWO iShares Russell 2000 Growth ETF	0.40%	0.56%	0.80%	0.73%	0.73%	0.32%	0.44%	0.71%	0.76%	0.73%	0.97%	0.89%
XSHQ Invesco S&P SmallCap Quality ETF	1.38%	1.48%	1.18%	1.15%	2.02%	1.25%	1.24%	1.11%	1.16%	0.60%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IWO and XSHQ in my portfolio?

IWO and XSHQ have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWO or XSHQ?

IWO has higher volatility (6.61%) compared to XSHQ (4.57%). In terms of maximum drawdown, IWO dropped -60.11% vs XSHQ's -38.33%.

Which ETF is better, IWO or XSHQ?

On 5-year performance, XSHQ leads with 5.96% vs 5.56% for IWO. On fees, IWO is cheaper at 0.24% per year. On volatility, XSHQ has been the lower-risk option at 4.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWO or XSHQ?

Over the 5-year period, XSHQ has performed better with a 5.96% return vs 5.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWO or XSHQ?

IWO is cheaper with a 0.24% expense ratio, compared with 0.29% for XSHQ.

Which ETF pays a higher dividend yield, IWO or XSHQ?

XSHQ has the higher dividend yield at 1.38%, compared with 0.40% for IWO.

What is the main difference between IWO and XSHQ?

IWO tracks Russell 2000 Growth Index, while XSHQ tracks S&P SmallCap 600 Quality Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.24% for IWO and 0.29% for XSHQ.

Which has better risk-adjusted returns?

IWO currently has the higher Sharpe Ratio (1.75 vs 0.88), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.