XMHQ vs. MDY

Last updated Aug 2, 2026

XMHQ (Invesco S&P MidCap Quality ETF) and MDY (SPDR S&P MidCap 400 ETF) are both exchange-traded funds - XMHQ is a Quality Factor fund tracking the S&P MidCap 400 Quality Index, while MDY is a Mid Cap Blend Equities fund tracking the S&P MidCap 400 Index. Both are passively managed. Over the past 10 years, XMHQ returned 12.83%/yr vs 10.79%/yr for MDY. Their correlation of 0.85 means they have usually moved in the same direction. XMHQ charges 0.25%/yr vs 0.23%/yr for MDY.

Performance

XMHQ vs. MDY - Performance Comparison

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

Returns By Period

In the year-to-date period, XMHQ achieves a 12.54% return, which is significantly lower than MDY's 14.33% return. Over the past 10 years, XMHQ has outperformed MDY with an annualized return of 12.83%, while MDY has yielded a comparatively lower 10.79% annualized return.

XMHQ

• 1D: 0.26%
• 1M: 1.40%
• 6M: 8.28%
• YTD: 12.54%
• 1Y: 16.17%
• 3Y*: 13.54%
• 5Y*: 10.18%
• 10Y*: 12.83%
• ALL TIME*: 9.48%

MDY

• 1D: -0.13%
• 1M: -1.06%
• 6M: 9.90%
• YTD: 14.33%
• 1Y: 22.39%
• 3Y*: 12.71%
• 5Y*: 8.19%
• 10Y*: 10.79%
• ALL TIME*: 11.29%

*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)
MDY SPDR S&P MidCap 400 ETF	$420.06M	$401.19M	$471.25M
XMHQ Invesco S&P MidCap Quality ETF	$19.95M	$19.43M	$20.53M

XMHQ vs. MDY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XMHQ Invesco S&P MidCap Quality ETF	12.54%	4.71%	16.79%	29.51%	-12.42%	20.98%	26.61%	27.18%	-9.08%	15.64%
MDY SPDR S&P MidCap 400 ETF	14.33%	7.19%	13.64%	16.07%	-13.28%	24.53%	13.50%	25.78%	-11.29%	15.93%

Correlation

The correlation between XMHQ and MDY is 0.91, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.91
Correlation (3Y) Balances recent behavior with more history.	0.94
Correlation (5Y) Shows whether the relationship held over a longer period.	0.96
Correlation (10Y) Provides a long-term view across more market conditions.	0.90
Correlation (All Time) Calculated using the full available price history since Dec 1, 2006	0.85

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

XMHQ vs. MDY - Sectors Allocation Comparison

Sectors	XMHQ	MDY
Industrials	30.2%	21.7%
Technology	18.5%	15.3%
Healthcare	16.0%	10.2%
Financial Services	15.1%	14.3%
Consumer Cyclical	9.4%	10.2%
Energy	6.9%	5.2%
Utilities	2.2%	2.9%
Basic Materials	1.5%	6.9%
Communication Services	1.4%	1.5%
Consumer Defensive	1.1%	3.2%
Real Estate	-	7.6%

Return for Risk

XMHQ vs. MDY — Risk / Return Rank

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

XMHQ

XMHQ Risk / Return Rank: 41
XMHQ Sharpe Ratio Rank: 38
XMHQ Sortino Ratio Rank: 40
XMHQ Omega Ratio Rank: 35
XMHQ Calmar Ratio Rank: 46
XMHQ Martin Ratio Rank: 44

MDY

MDY Risk / Return Rank: 61
MDY Sharpe Ratio Rank: 56
MDY Sortino Ratio Rank: 59
MDY Omega Ratio Rank: 54
MDY Calmar Ratio Rank: 68
MDY Martin Ratio Rank: 69

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.

XMHQ vs. MDY - Risk-Adjusted Trends Comparison

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

	XMHQ	MDY	Difference
Sharpe ratio: Return per unit of total volatility	0.95	1.32	-0.37
Sortino ratio: Return per unit of downside risk	1.47	1.98	-0.50
Omega ratio: Gain probability vs. loss probability	1.17	1.24	-0.07
Calmar ratio: Return relative to maximum drawdown	1.64	2.34	-0.71
Martin ratio: Return relative to average drawdown	4.86	8.48	-3.62

XMHQ vs. MDY - Sharpe Ratio Comparison

The current XMHQ Sharpe Ratio is 0.95, which is comparable to the MDY Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of XMHQ and MDY, 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

XMHQ vs. MDY - Drawdown Comparison

The maximum XMHQ drawdown since its inception was -58.19%, which is greater than MDY's maximum drawdown of -55.33%. Use the drawdown chart below to compare losses from any high point for XMHQ and MDY.

Drawdown Indicators

	XMHQ	MDY	Difference
Max Drawdown Largest peak-to-trough decline	-58.19%	-55.33%	-2.86%
Max Drawdown (1Y) Largest decline over 1 year	-8.85%	-8.82%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	-24.56%	-24.03%	-0.53%
Max Drawdown (5Y) Largest decline over 5 years	-25.47%	-24.03%	-1.44%
Max Drawdown (10Y) Largest decline over 10 years	-36.90%	-42.22%	+5.32%
Current Drawdown Current decline from peak	-0.02%	-2.42%	+2.40%
Average Drawdown Average peak-to-trough decline	-9.22%	-7.00%	-2.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	2.44%	+0.53%

Volatility

XMHQ vs. MDY - Volatility Comparison

The current volatility for Invesco S&P MidCap Quality ETF (XMHQ) is 3.13%, while SPDR S&P MidCap 400 ETF (MDY) has a volatility of 3.45%. This indicates that XMHQ experiences smaller price fluctuations and is considered to be less risky than MDY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XMHQ	MDY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.13%	3.45%	-0.32%
Volatility (6M) Calculated over the trailing 6-month period	11.07%	11.59%	-0.52%
Volatility (1Y) Calculated over the trailing 1-year period	15.30%	15.69%	-0.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.57%	19.69%	+0.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.63%	21.14%	-0.51%

XMHQ vs. MDY - Expense Ratio Comparison

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

Dividends

XMHQ vs. MDY - Dividend Comparison

XMHQ's dividend yield for the trailing twelve months is around 0.56%, less than MDY's 1.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MDY SPDR S&P MidCap 400 ETF	1.02%	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	0.56%	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 XMHQ and MDY in my portfolio?

With a correlation of 0.91, XMHQ and MDY 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, XMHQ or MDY?

MDY has higher volatility (3.45%) compared to XMHQ (3.13%). In terms of maximum drawdown, XMHQ dropped -58.19% vs MDY's -55.33%.

Which ETF is better, XMHQ or MDY?

On 10-year performance, XMHQ leads with 12.83% vs 10.79% for MDY. On fees, MDY is cheaper at 0.23% per year. On volatility, XMHQ has been the lower-risk option at 3.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XMHQ or MDY?

Over the 10-year period, XMHQ has performed better with a 12.83% return vs 10.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XMHQ or MDY?

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

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

MDY has the higher dividend yield at 1.02%, compared with 0.56% for XMHQ.

What is the main difference between XMHQ and MDY?

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

Which has better risk-adjusted returns?

MDY currently has the higher Sharpe Ratio (1.32 vs 0.95), 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.