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XSHQ vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XSHQ vs. IWM

Last updated Jun 4, 2026

XSHQ (Invesco S&P SmallCap Quality ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - XSHQ is a Small Cap Growth Equities fund tracking the S&P SmallCap 600 Quality Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 5 years, XSHQ returned 5.96%/yr vs 6.11%/yr for IWM. Their correlation of 0.87 suggests significant overlap in exposure. XSHQ charges 0.29%/yr vs 0.19%/yr for IWM.

Performance

XSHQ vs. IWM - Performance Comparison

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

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Returns By Period

In the year-to-date period, XSHQ achieves a 9.09% return, which is significantly lower than IWM's 17.07% return.

XSHQ

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

IWM

1D
-1.37%
1M
3.52%
YTD
17.07%
6M
15.83%
1Y
39.10%
3Y*
17.88%
5Y*
6.11%
10Y*
10.93%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XSHQ vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
IWM
iShares Russell 2000 ETF		17.07%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%12.40%

Correlation

The correlation between XSHQ and IWM is 0.86, 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

0.86

Correlation (3Y)
Calculated over the trailing 3-year period

0.91

Correlation (5Y)
Calculated over the trailing 5-year period

0.91

Correlation (All Time)
Calculated using the full available price history since Aug 25, 2017

0.87

The correlation between XSHQ and IWM has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.

XSHQ vs. IWM - Sectors Allocation Comparison

Sectors
XSHQ
IWM

Financial Services

24.0%
15.8%

Industrials

21.1%
17.1%

Technology

17.6%
19.5%

Consumer Cyclical

16.3%
7.8%

Healthcare

8.0%
15.8%

Energy

4.5%
6.0%

Consumer Defensive

4.0%
2.1%

Basic Materials

2.5%
4.5%

Communication Services

1.0%
2.0%

Real Estate

0.9%
5.7%

Utilities

-

3.0%

Financial Services

XSHQ
24.0%
IWM
15.8%

Industrials

XSHQ
21.1%
IWM
17.1%

Technology

XSHQ
17.6%
IWM
19.5%

Consumer Cyclical

XSHQ
16.3%
IWM
7.8%

Healthcare

XSHQ
8.0%
IWM
15.8%

Energy

XSHQ
4.5%
IWM
6.0%

Consumer Defensive

XSHQ
4.0%
IWM
2.1%

Basic Materials

XSHQ
2.5%
IWM
4.5%

Communication Services

XSHQ
1.0%
IWM
2.0%

Real Estate

XSHQ
0.9%
IWM
5.7%

Utilities

XSHQ

-

IWM
3.0%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Invesco S&P SmallCap Quality ETF

iShares Russell 2000 ETF

Often compared with XSHQ:
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Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. IWO

Return for Risk

XSHQ vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XSHQ
XSHQ Risk / Return Rank: 2626
Overall Rank
XSHQ Sharpe Ratio Rank: 2424
Sharpe Ratio Rank
XSHQ Sortino Ratio Rank: 2626
Sortino Ratio Rank
XSHQ Omega Ratio Rank: 2323
Omega Ratio Rank
XSHQ Calmar Ratio Rank: 3030
Calmar Ratio Rank
XSHQ Martin Ratio Rank: 2828
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 6262
Overall Rank
IWM Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 5959
Sortino Ratio Rank
IWM Omega Ratio Rank: 5353
Omega Ratio Rank
IWM Calmar Ratio Rank: 7070
Calmar Ratio Rank
IWM Martin Ratio Rank: 6767
Martin Ratio Rank
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.

XSHQ vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Quality ETF (XSHQ) and iShares Russell 2000 ETF (IWM). 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.

XSHQIWMDifference
Sharpe ratioReturn per unit of total volatility
0.88
2.05

-1.18

Sortino ratioReturn per unit of downside risk
1.42
2.85

-1.43

Omega ratioGain probability vs. loss probability

1.16

1.34

-0.18

Calmar ratioReturn relative to maximum drawdown

1.48

3.56

-2.08

Martin ratioReturn relative to average drawdown

4.06

12.64

-8.59

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XSHQ vs. IWM - Sharpe Ratio Comparison

The current XSHQ Sharpe Ratio is 0.88, which is lower than the IWM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of XSHQ and IWM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

XSHQIWMDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.88

2.05

-1.18

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.28

0.27

+0.01

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

—

0.48

—

Sharpe Ratio (All Time)

Calculated using the full available price history

0.37

0.37

0.00

Drawdowns

XSHQ vs. IWM - Drawdown Comparison

The maximum XSHQ drawdown since its inception was -38.33%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for XSHQ and IWM.

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Drawdown Indicators

XSHQIWMDifference

Max Drawdown

Largest peak-to-trough decline

-38.33%

-59.05%

+20.72%

Max Drawdown (1Y)

Largest decline over 1 year

-10.27%

-11.03%

+0.76%

Max Drawdown (3Y)

Largest decline over 3 years

-27.34%

-27.50%

+0.16%

Max Drawdown (5Y)

Largest decline over 5 years

-27.34%

-31.91%

+4.57%

Max Drawdown (10Y)

Largest decline over 10 years

—

-41.13%

—

Current Drawdown

Current decline from peak

-1.76%

-1.49%

-0.27%

Average Drawdown

Average peak-to-trough decline

-9.35%

-10.77%

+1.42%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.75%

3.10%

+0.65%

Volatility

XSHQ vs. IWM - Volatility Comparison

The current volatility for Invesco S&P SmallCap Quality ETF (XSHQ) is 4.57%, while iShares Russell 2000 ETF (IWM) has a volatility of 5.75%. This indicates that XSHQ experiences smaller price fluctuations and is considered to be less risky than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XSHQIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.57%

5.75%

-1.18%

Volatility (6M)

Calculated over the trailing 6-month period

11.66%

13.53%

-1.87%

Volatility (1Y)

Calculated over the trailing 1-year period

17.43%

19.20%

-1.77%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.23%

22.52%

-1.29%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.13%

23.04%

+0.09%

XSHQ vs. IWM - Expense Ratio Comparison

XSHQ has a 0.29% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

XSHQ vs. IWM - Dividend Comparison

XSHQ's dividend yield for the trailing twelve months is around 1.38%, more than IWM's 0.88% yield.

PositionTTM20252024202320222021202020192018201720162015
IWM
iShares Russell 2000 ETF		0.88%1.04%1.15%1.35%1.48%0.94%1.04%1.26%1.40%1.26%1.38%1.54%
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

XSHQ and IWM have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWM has higher volatility (5.75%) compared to XSHQ (4.57%). In terms of maximum drawdown, XSHQ dropped -38.33% vs IWM's -59.05%.

On 5-year performance, IWM leads with 6.11% vs 5.96% for XSHQ. On fees, IWM is cheaper at 0.19% 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.

Over the 5-year period, IWM has performed better with a 6.11% return vs 5.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IWM is cheaper with a 0.19% expense ratio, compared with 0.29% for XSHQ.

XSHQ has the higher dividend yield at 1.38%, compared with 0.88% for IWM.

XSHQ is categorized as Small Cap Growth Equities, while IWM is Small Cap Blend Equities. XSHQ tracks S&P SmallCap 600 Quality Index, while IWM tracks Russell 2000 Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.29% for XSHQ and 0.19% for IWM.

IWM currently has the higher Sharpe Ratio (2.05 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.

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