XSHQ vs. OUSM

Last updated Jun 4, 2026

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

Performance

XSHQ vs. OUSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Quality ETF (XSHQ) and OShares U.S. Small-Cap Quality Dividend ETF (OUSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSHQ achieves a 9.09% return, which is significantly higher than OUSM's 6.80% return.

XSHQ

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

OUSM

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

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

XSHQ vs. OUSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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%

Correlation

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

XSHQ vs. OUSM - Sectors Allocation Comparison

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

Return for Risk

XSHQ vs. OUSM — Risk / Return Rank

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

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

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

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. OUSM - Risk-Adjusted Trends Comparison

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

	XSHQ	OUSM	Difference
Sharpe ratio: Return per unit of total volatility	0.88	0.83	+0.04
Sortino ratio: Return per unit of downside risk	1.42	1.34	+0.09
Omega ratio: Gain probability vs. loss probability	1.16	1.15	+0.01
Calmar ratio: Return relative to maximum drawdown	1.48	1.19	+0.30
Martin ratio: Return relative to average drawdown	4.06	3.47	+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.

XSHQ vs. OUSM - Sharpe Ratio Comparison

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

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

Drawdowns

XSHQ vs. OUSM - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

XSHQ vs. OUSM - Volatility Comparison

Invesco S&P SmallCap Quality ETF (XSHQ) has a higher volatility of 4.57% compared to OShares U.S. Small-Cap Quality Dividend ETF (OUSM) at 3.66%. This indicates that XSHQ's price experiences larger fluctuations and is considered to be riskier than OUSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

XSHQ vs. OUSM - Expense Ratio Comparison

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

Dividends

XSHQ vs. OUSM - Dividend Comparison

XSHQ's dividend yield for the trailing twelve months is around 1.38%, less than OUSM's 2.07% 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 XSHQ and OUSM in my portfolio?

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

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

Which ETF is better, XSHQ or OUSM?

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, XSHQ or OUSM?

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, XSHQ or OUSM?

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

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

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

What is the main difference between XSHQ and OUSM?

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

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.