VTWG vs. XSHQ

Last updated Aug 4, 2026

VTWG (Vanguard Russell 2000 Growth ETF) and XSHQ (Invesco S&P SmallCap Quality ETF) are both exchange-traded funds - VTWG is a Small Cap Growth Equities fund tracking the Russell 2000 Growth Index, while XSHQ is a Quality Factor fund tracking the S&P SmallCap 600 Quality Index. Both are passively managed. Over the past 5 years, VTWG returned 5.73%/yr vs 7.76%/yr for XSHQ. Their correlation of 0.81 means they have usually moved in the same direction. VTWG charges 0.06%/yr vs 0.29%/yr for XSHQ.

Performance

VTWG vs. XSHQ - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with VTWG having a 17.46% return and XSHQ slightly lower at 16.82%.

VTWG

• 1D: 2.10%
• 1M: -2.12%
• 6M: 11.88%
• YTD: 17.46%
• 1Y: 33.76%
• 3Y*: 16.31%
• 5Y*: 5.73%
• 10Y*: 10.77%
• ALL TIME*: 11.91%

XSHQ

• 1D: 1.79%
• 1M: 2.32%
• 6M: 11.89%
• YTD: 16.82%
• 1Y: 22.44%
• 3Y*: 10.40%
• 5Y*: 7.76%
• 10Y*: —
• ALL TIME*: 9.13%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VTWG Vanguard Russell 2000 Growth ETF	$5.94M	$5.47M	$5.78M
XSHQ Invesco S&P SmallCap Quality ETF	$7.21M	$3.87M	$2.29M

VTWG vs. XSHQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTWG Vanguard Russell 2000 Growth ETF	17.46%	13.07%	15.15%	18.90%	-26.49%	2.84%	34.72%	28.75%	-9.45%	13.70%
XSHQ Invesco S&P SmallCap Quality ETF	16.82%	0.89%	7.49%	23.88%	-15.01%	23.99%	11.81%	17.37%	-6.11%	7.18%

Correlation

The correlation between VTWG and XSHQ is 0.78, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.78
Correlation (3Y) Balances recent behavior with more history.	0.86
Correlation (5Y) Shows whether the relationship held over a longer period.	0.86
Correlation (All Time) Calculated using the full available price history since Aug 24, 2017	0.81

The correlation between VTWG and XSHQ has been stable across timeframes, ranging from 0.78 to 0.86 - a consistent structural relationship.

VTWG vs. XSHQ - Sectors Allocation Comparison

Sectors	VTWG	XSHQ
Healthcare	28.8%	5.8%
Technology	22.1%	22.6%
Industrials	15.9%	20.5%
Consumer Cyclical	8.1%	14.4%
Financial Services	8.1%	24.7%
Basic Materials	5.0%	2.6%
Energy	4.8%	4.1%
Real Estate	2.5%	1.0%
Consumer Defensive	2.3%	2.4%
Communication Services	1.9%	2.9%
Utilities	0.6%	-

Return for Risk

VTWG vs. XSHQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VTWG

VTWG Risk / Return Rank: 61
VTWG Sharpe Ratio Rank: 63
VTWG Sortino Ratio Rank: 62
VTWG Omega Ratio Rank: 55
VTWG Calmar Ratio Rank: 63
VTWG Martin Ratio Rank: 63

XSHQ

XSHQ Risk / Return Rank: 53
XSHQ Sharpe Ratio Rank: 51
XSHQ Sortino Ratio Rank: 58
XSHQ Omega Ratio Rank: 48
XSHQ Calmar Ratio Rank: 60
XSHQ Martin Ratio Rank: 50

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VTWG vs. XSHQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 Growth ETF (VTWG) 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.

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.

	VTWG	XSHQ	Difference
Sharpe ratio: Return per unit of total volatility	1.50	1.30	+0.20
Sortino ratio: Return per unit of downside risk	2.14	2.06	+0.08
Omega ratio: Gain probability vs. loss probability	1.25	1.23	+0.02
Calmar ratio: Return relative to maximum drawdown	2.28	2.19	+0.09
Martin ratio: Return relative to average drawdown	7.86	6.04	+1.82

VTWG vs. XSHQ - Sharpe Ratio Comparison

The current VTWG Sharpe Ratio is 1.50, which is comparable to the XSHQ Sharpe Ratio of 1.30. The chart below compares the historical Sharpe Ratios of VTWG 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.

Drawdowns

VTWG vs. XSHQ - Drawdown Comparison

The maximum VTWG drawdown since its inception was -42.07%, which is greater than XSHQ's maximum drawdown of -38.33%. Use the drawdown chart below to compare losses from any high point for VTWG and XSHQ.

Drawdown Indicators

	VTWG	XSHQ	Difference
Max Drawdown Largest peak-to-trough decline	-42.07%	-38.33%	-3.74%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-10.27%	-4.61%
Max Drawdown (3Y) Largest decline over 3 years	-28.58%	-27.34%	-1.24%
Max Drawdown (5Y) Largest decline over 5 years	-40.49%	-27.34%	-13.15%
Max Drawdown (10Y) Largest decline over 10 years	-42.07%	—	—
Current Drawdown Current decline from peak	-3.93%	0.00%	-3.93%
Average Drawdown Average peak-to-trough decline	-10.45%	-9.19%	-1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.30%	3.72%	+0.58%

Volatility

VTWG vs. XSHQ - Volatility Comparison

Vanguard Russell 2000 Growth ETF (VTWG) has a higher volatility of 6.26% compared to Invesco S&P SmallCap Quality ETF (XSHQ) at 4.51%. This indicates that VTWG'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

	VTWG	XSHQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.26%	4.51%	+1.75%
Volatility (6M) Calculated over the trailing 6-month period	17.30%	11.77%	+5.53%
Volatility (1Y) Calculated over the trailing 1-year period	22.62%	17.31%	+5.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.67%	21.07%	+3.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.28%	23.00%	+1.28%

VTWG vs. XSHQ - Expense Ratio Comparison

VTWG has a 0.06% expense ratio, which is lower than XSHQ's 0.29% expense ratio.

Dividends

VTWG vs. XSHQ - Dividend Comparison

VTWG's dividend yield for the trailing twelve months is around 0.60%, less than XSHQ's 1.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTWG Vanguard Russell 2000 Growth ETF	0.60%	0.64%	0.55%	0.79%	0.71%	0.54%	0.48%	0.72%	0.72%	0.64%	0.96%	0.72%
XSHQ Invesco S&P SmallCap Quality ETF	1.16%	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 VTWG and XSHQ in my portfolio?

VTWG and XSHQ have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTWG or XSHQ?

VTWG has higher volatility (6.26%) compared to XSHQ (4.51%). In terms of maximum drawdown, VTWG dropped -42.07% vs XSHQ's -38.33%.

Which ETF is better, VTWG or XSHQ?

On 5-year performance, XSHQ leads with 7.76% vs 5.73% for VTWG. On fees, VTWG is cheaper at 0.06% per year. On volatility, XSHQ has been the lower-risk option at 4.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTWG or XSHQ?

Over the 5-year period, XSHQ has performed better with a 7.76% return vs 5.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTWG or XSHQ?

VTWG is cheaper with a 0.06% expense ratio, compared with 0.29% for XSHQ.

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

XSHQ has the higher dividend yield at 1.16%, compared with 0.60% for VTWG.

What is the main difference between VTWG and XSHQ?

VTWG is categorized as Small Cap Growth Equities, while XSHQ is Quality Factor. VTWG tracks Russell 2000 Growth Index, while XSHQ tracks S&P SmallCap 600 Quality Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.06% for VTWG and 0.29% for XSHQ.

Which has better risk-adjusted returns?

VTWG currently has the higher Sharpe Ratio (1.50 vs 1.30), 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.