OUSM vs. XSHQ

Last updated Jun 4, 2026

OUSM (OShares U.S. Small-Cap Quality Dividend ETF) and XSHQ (Invesco S&P SmallCap Quality ETF) are both exchange-traded funds - OUSM is a Small Cap Blend Equities fund tracking the O'Shares US Small-Cap Quality Dividend Index, while XSHQ is a Small Cap Growth Equities fund tracking the S&P SmallCap 600 Quality Index. Both are passively managed. Over the past 5 years, OUSM returned 7.39%/yr vs 5.96%/yr for XSHQ. Their correlation of 0.86 suggests significant overlap in exposure. OUSM charges 0.48%/yr vs 0.29%/yr for XSHQ.

Performance

OUSM vs. XSHQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in OShares U.S. Small-Cap Quality Dividend ETF (OUSM) 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, OUSM achieves a 6.80% return, which is significantly lower than XSHQ's 9.09% return.

OUSM

• 1D: -0.06%
• 1M: 1.69%
• YTD: 6.80%
• 6M: 6.94%
• 1Y: 10.89%
• 3Y*: 11.71%
• 5Y*: 7.39%
• 10Y*: —

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)

OUSM vs. XSHQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
OUSM OShares U.S. Small-Cap Quality Dividend ETF	6.80%	2.17%	13.45%	18.82%	-7.89%	21.45%	7.64%	28.04%	-10.60%	9.59%
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 OUSM and XSHQ is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Aug 25, 2017	0.86

The correlation between OUSM and XSHQ has been stable across timeframes, ranging from 0.86 to 0.90 - a consistent structural relationship.

OUSM vs. XSHQ - Sectors Allocation Comparison

Sectors	OUSM	XSHQ
Industrials	22.8%	21.1%
Financial Services	21.1%	24.0%
Consumer Cyclical	19.3%	16.3%
Technology	13.5%	17.6%
Healthcare	9.2%	8.0%
Consumer Defensive	4.9%	4.0%
Utilities	3.9%	-
Communication Services	3.8%	1.0%
Basic Materials	1.4%	2.5%
Energy	0.3%	4.5%
Real Estate	-	0.9%

Return for Risk

OUSM vs. XSHQ — Risk / Return Rank

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

OUSM

OUSM Risk / Return Rank: 24
OUSM Sharpe Ratio Rank: 23
OUSM Sortino Ratio Rank: 24
OUSM Omega Ratio Rank: 22
OUSM Calmar Ratio Rank: 25
OUSM Martin Ratio Rank: 25

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.

OUSM vs. XSHQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for OShares U.S. Small-Cap Quality Dividend ETF (OUSM) 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.

	OUSM	XSHQ	Difference
Sharpe ratio: Return per unit of total volatility	0.83	0.88	-0.04
Sortino ratio: Return per unit of downside risk	1.34	1.42	-0.09
Omega ratio: Gain probability vs. loss probability	1.15	1.16	-0.01
Calmar ratio: Return relative to maximum drawdown	1.19	1.48	-0.30
Martin ratio: Return relative to average drawdown	3.47	4.06	-0.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

OUSM vs. XSHQ - Sharpe Ratio Comparison

The current OUSM Sharpe Ratio is 0.83, which is comparable to the XSHQ Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of OUSM 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

	OUSM	XSHQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.83	0.88	-0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	0.28	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.37	+0.11

Drawdowns

OUSM vs. XSHQ - Drawdown Comparison

The maximum OUSM drawdown since its inception was -39.84%, roughly equal to the maximum XSHQ drawdown of -38.33%. Use the drawdown chart below to compare losses from any high point for OUSM and XSHQ.

Drawdown Indicators

	OUSM	XSHQ	Difference
Max Drawdown Largest peak-to-trough decline	-39.84%	-38.33%	-1.51%
Max Drawdown (1Y) Largest decline over 1 year	-9.21%	-10.27%	+1.06%
Max Drawdown (3Y) Largest decline over 3 years	-19.44%	-27.34%	+7.90%
Max Drawdown (5Y) Largest decline over 5 years	-19.44%	-27.34%	+7.90%
Current Drawdown Current decline from peak	-1.67%	-1.76%	+0.09%
Average Drawdown Average peak-to-trough decline	-5.22%	-9.35%	+4.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	3.75%	-0.61%

Volatility

OUSM vs. XSHQ - Volatility Comparison

The current volatility for OShares U.S. Small-Cap Quality Dividend ETF (OUSM) is 3.66%, while Invesco S&P SmallCap Quality ETF (XSHQ) has a volatility of 4.57%. This indicates that OUSM experiences smaller price fluctuations and is considered to be less risky than XSHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OUSM	XSHQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.66%	4.57%	-0.91%
Volatility (6M) Calculated over the trailing 6-month period	9.25%	11.66%	-2.41%
Volatility (1Y) Calculated over the trailing 1-year period	13.15%	17.43%	-4.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.30%	21.23%	-4.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.94%	23.13%	-4.19%

OUSM vs. XSHQ - Expense Ratio Comparison

OUSM has a 0.48% expense ratio, which is higher than XSHQ's 0.29% expense ratio.

Dividends

OUSM vs. XSHQ - Dividend Comparison

OUSM's dividend yield for the trailing twelve months is around 2.07%, more than XSHQ's 1.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
OUSM OShares U.S. Small-Cap Quality Dividend ETF	2.07%	2.09%	1.62%	1.64%	1.98%	1.55%	2.02%	1.99%	2.63%	2.17%
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%

Frequently Asked Questions

Can I hold both OUSM and XSHQ in my portfolio?

With a correlation of 0.90, OUSM and XSHQ 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, OUSM or XSHQ?

XSHQ has higher volatility (4.57%) compared to OUSM (3.66%). In terms of maximum drawdown, OUSM dropped -39.84% vs XSHQ's -38.33%.

Which ETF is better, OUSM or XSHQ?

On 5-year performance, OUSM leads with 7.39% vs 5.96% for XSHQ. On fees, XSHQ is cheaper at 0.29% per year. On volatility, OUSM has been the lower-risk option at 3.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OUSM or XSHQ?

Over the 5-year period, OUSM has performed better with a 7.39% return vs 5.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OUSM or XSHQ?

XSHQ is cheaper with a 0.29% expense ratio, compared with 0.48% for OUSM.

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

OUSM has the higher dividend yield at 2.07%, compared with 1.38% for XSHQ.

What is the main difference between OUSM and XSHQ?

OUSM is categorized as Small Cap Blend Equities, while XSHQ is Small Cap Growth Equities. OUSM tracks O'Shares US Small-Cap Quality Dividend Index, while XSHQ tracks S&P SmallCap 600 Quality Index. They also come from different issuers: O'Shares Investments and Invesco. Their fees differ too: 0.48% for OUSM and 0.29% for XSHQ.

Which has better risk-adjusted returns?

XSHQ currently has the higher Sharpe Ratio (0.88 vs 0.83), 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.