MDY vs. XMHQ

Last updated Jun 23, 2026

MDY (SPDR S&P MidCap 400 ETF) and XMHQ (Invesco S&P MidCap Quality ETF) are both Mid Cap Blend Equities funds - MDY tracks the S&P MidCap 400 Index while XMHQ tracks the S&P MidCap 400 Quality Index. Both are passively managed. Over the past 10 years, MDY returned 11.52%/yr vs 13.03%/yr for XMHQ. Their correlation of 0.85 suggests significant overlap in exposure. MDY charges 0.23%/yr vs 0.25%/yr for XMHQ.

Performance

MDY vs. XMHQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P MidCap 400 ETF (MDY) and Invesco S&P MidCap Quality ETF (XMHQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MDY achieves a 15.58% return, which is significantly higher than XMHQ's 8.87% return. Over the past 10 years, MDY has underperformed XMHQ with an annualized return of 11.52%, while XMHQ has yielded a comparatively higher 13.03% annualized return.

MDY

• 1D: 0.41%
• 1M: 3.71%
• YTD: 15.58%
• 6M: 13.18%
• 1Y: 27.09%
• 3Y*: 16.19%
• 5Y*: 8.64%
• 10Y*: 11.52%

XMHQ

• 1D: 0.55%
• 1M: 2.66%
• YTD: 8.87%
• 6M: 6.35%
• 1Y: 16.53%
• 3Y*: 15.38%
• 5Y*: 9.84%
• 10Y*: 13.03%

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

MDY vs. XMHQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MDY SPDR S&P MidCap 400 ETF	15.58%	7.19%	13.64%	16.07%	-13.28%	24.53%	13.50%	25.78%	-11.29%	15.93%
XMHQ Invesco S&P MidCap Quality ETF	8.87%	4.71%	16.79%	29.51%	-12.42%	20.98%	26.61%	27.18%	-9.08%	15.64%

Correlation

The correlation between MDY and XMHQ is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Dec 1, 2006	0.85

The correlation between MDY and XMHQ shifts across timeframes, from 0.85 (all time) to 0.96 (5 years), reflecting how their relationship changes across market environments.

MDY vs. XMHQ - Sectors Allocation Comparison

Sectors	MDY	XMHQ
Industrials	24.8%	25.9%
Technology	17.4%	13.5%
Financial Services	13.3%	14.3%
Consumer Cyclical	10.7%	9.4%
Healthcare	9.1%	20.4%
Real Estate	7.4%	-
Energy	5.0%	5.9%
Basic Materials	4.9%	5.0%
Consumer Defensive	3.4%	3.4%
Utilities	3.0%	2.2%
Communication Services	1.0%	2.7%

Return for Risk

MDY vs. XMHQ — Risk / Return Rank

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

MDY

MDY Risk / Return Rank: 57
MDY Sharpe Ratio Rank: 52
MDY Sortino Ratio Rank: 54
MDY Omega Ratio Rank: 49
MDY Calmar Ratio Rank: 64
MDY Martin Ratio Rank: 63

XMHQ

XMHQ Risk / Return Rank: 33
XMHQ Sharpe Ratio Rank: 30
XMHQ Sortino Ratio Rank: 31
XMHQ Omega Ratio Rank: 27
XMHQ Calmar Ratio Rank: 39
XMHQ Martin Ratio Rank: 37

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.

MDY vs. XMHQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P MidCap 400 ETF (MDY) and Invesco S&P MidCap Quality ETF (XMHQ). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MDY	XMHQ	Difference
Sharpe ratio: Return per unit of total volatility	1.73	1.06	+0.67
Sortino ratio: Return per unit of downside risk	2.51	1.63	+0.88
Omega ratio: Gain probability vs. loss probability	1.30	1.18	+0.12
Calmar ratio: Return relative to maximum drawdown	3.08	1.88	+1.21
Martin ratio: Return relative to average drawdown	11.23	5.48	+5.75

MDY vs. XMHQ - Sharpe Ratio Comparison

The current MDY Sharpe Ratio is 1.73, which is higher than the XMHQ Sharpe Ratio of 1.06. The chart below compares the historical Sharpe Ratios of MDY and XMHQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MDY vs. XMHQ - Drawdown Comparison

The maximum MDY drawdown since its inception was -55.33%, roughly equal to the maximum XMHQ drawdown of -58.19%. Use the drawdown chart below to compare losses from any high point for MDY and XMHQ.

Drawdown Indicators

	MDY	XMHQ	Difference
Max Drawdown Largest peak-to-trough decline	-55.33%	-58.19%	+2.86%
Max Drawdown (1Y) Largest decline over 1 year	-8.82%	-8.85%	+0.03%
Max Drawdown (3Y) Largest decline over 3 years	-24.03%	-24.56%	+0.53%
Max Drawdown (5Y) Largest decline over 5 years	-24.03%	-25.47%	+1.44%
Max Drawdown (10Y) Largest decline over 10 years	-42.22%	-36.90%	-5.32%
Current Drawdown Current decline from peak	-0.12%	-1.26%	+1.14%
Average Drawdown Average peak-to-trough decline	-7.02%	-9.27%	+2.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.42%	3.02%	-0.60%

Volatility

MDY vs. XMHQ - Volatility Comparison

SPDR S&P MidCap 400 ETF (MDY) and Invesco S&P MidCap Quality ETF (XMHQ) have volatilities of 4.53% and 4.35%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MDY	XMHQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.53%	4.35%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	11.65%	11.42%	+0.23%
Volatility (1Y) Calculated over the trailing 1-year period	15.80%	15.76%	+0.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.78%	20.74%	-0.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.22%	20.71%	+0.51%

MDY vs. XMHQ - Expense Ratio Comparison

MDY has a 0.23% expense ratio, which is lower than XMHQ's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

MDY vs. XMHQ - Dividend Comparison

MDY's dividend yield for the trailing twelve months is around 1.01%, more than XMHQ's 0.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MDY SPDR S&P MidCap 400 ETF	1.01%	1.15%	1.18%	1.21%	1.37%	0.96%	1.12%	1.34%	1.39%	1.18%	1.31%	1.35%
XMHQ Invesco S&P MidCap Quality ETF	0.70%	0.64%	5.20%	0.73%	1.72%	1.00%	1.12%	1.22%	1.59%	1.06%	1.63%	1.34%

Frequently Asked Questions

Can I hold both MDY and XMHQ in my portfolio?

With a correlation of 0.93, MDY and XMHQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MDY or XMHQ?

MDY has higher volatility (4.53%) compared to XMHQ (4.35%). In terms of maximum drawdown, MDY dropped -55.33% vs XMHQ's -58.19%.

Which ETF is better, MDY or XMHQ?

On 10-year performance, XMHQ leads with 13.03% vs 11.52% for MDY. On fees, MDY is cheaper at 0.23% per year. On volatility, XMHQ has been the lower-risk option at 4.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MDY or XMHQ?

Over the 10-year period, XMHQ has performed better with a 13.03% return vs 11.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MDY or XMHQ?

MDY is cheaper with a 0.23% expense ratio, compared with 0.25% for XMHQ.

Which ETF pays a higher dividend yield, MDY or XMHQ?

MDY has the higher dividend yield at 1.01%, compared with 0.70% for XMHQ.

What is the main difference between MDY and XMHQ?

MDY tracks S&P MidCap 400 Index, while XMHQ tracks S&P MidCap 400 Quality Index. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.23% for MDY and 0.25% for XMHQ.

Which has better risk-adjusted returns?

MDY currently has the higher Sharpe Ratio (1.73 vs 1.06), 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.