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XSHQ vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XSHQ vs. QQQ

Last updated Jun 4, 2026

XSHQ (Invesco S&P SmallCap Quality ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - XSHQ is a Small Cap Growth Equities fund tracking the S&P SmallCap 600 Quality Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, XSHQ returned 5.96%/yr vs 17.97%/yr for QQQ. A 0.56 correlation means they provide meaningful diversification when combined. XSHQ charges 0.29%/yr vs 0.18%/yr for QQQ.

Performance

XSHQ vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Quality ETF (XSHQ) and Invesco QQQ ETF (QQQ). 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 QQQ's 21.30% return.

XSHQ

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

QQQ

1D
-0.26%
1M
10.60%
YTD
21.30%
6M
19.66%
1Y
41.82%
3Y*
28.78%
5Y*
17.97%
10Y*
21.94%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XSHQ vs. QQQ - 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%
QQQ
Invesco QQQ ETF		21.30%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%9.95%

Correlation

The correlation between XSHQ and QQQ is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.54

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

0.54

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

0.61

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

0.56

The correlation between XSHQ and QQQ has been stable across timeframes, ranging from 0.54 to 0.61 - a consistent structural relationship.

XSHQ vs. QQQ - Sectors Allocation Comparison

Sectors
XSHQ
QQQ

Financial Services

24.0%
0.2%

Industrials

21.1%
2.8%

Technology

17.6%
53.8%

Consumer Cyclical

16.3%
12.3%

Healthcare

8.0%
4.2%

Energy

4.5%
0.6%

Consumer Defensive

4.0%
7.7%

Basic Materials

2.5%
1.1%

Communication Services

1.0%
15.8%

Real Estate

0.9%
0.1%

Utilities

-

1.4%

Financial Services

XSHQ
24.0%
QQQ
0.2%

Industrials

XSHQ
21.1%
QQQ
2.8%

Technology

XSHQ
17.6%
QQQ
53.8%

Consumer Cyclical

XSHQ
16.3%
QQQ
12.3%

Healthcare

XSHQ
8.0%
QQQ
4.2%

Energy

XSHQ
4.5%
QQQ
0.6%

Consumer Defensive

XSHQ
4.0%
QQQ
7.7%

Basic Materials

XSHQ
2.5%
QQQ
1.1%

Communication Services

XSHQ
1.0%
QQQ
15.8%

Real Estate

XSHQ
0.9%
QQQ
0.1%

Utilities

XSHQ

-

QQQ
1.4%

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

Invesco QQQ ETF

Often compared with XSHQ:
XSHQ vs. XSVMXSHQ vs. QSMLXXSHQ vs. OMFSXSHQ vs. XMHQXSHQ vs. SCHDXSHQ vs. IJRXSHQ vs. IWM
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI

Return for Risk

XSHQ vs. QQQ — 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
QQQ
QQQ Risk / Return Rank: 7373
Overall Rank
QQQ Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7575
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7474
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6969
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7171
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. QQQ - Risk-Adjusted Trends Comparison

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

XSHQQQQDifference
Sharpe ratioReturn per unit of total volatility
0.88
2.64

-1.76

Sortino ratioReturn per unit of downside risk
1.42
3.45

-2.02

Omega ratioGain probability vs. loss probability

1.16

1.45

-0.29

Calmar ratioReturn relative to maximum drawdown

1.48

3.51

-2.03

Martin ratioReturn relative to average drawdown

4.06

13.49

-9.44

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. QQQ - Sharpe Ratio Comparison

The current XSHQ Sharpe Ratio is 0.88, which is lower than the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of XSHQ and QQQ, 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

XSHQQQQDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.88

2.64

-1.76

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.28

0.81

-0.53

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

—

0.99

—

Sharpe Ratio (All Time)

Calculated using the full available price history

0.37

0.41

-0.04

Drawdowns

XSHQ vs. QQQ - Drawdown Comparison

The maximum XSHQ drawdown since its inception was -38.33%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for XSHQ and QQQ.

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Drawdown Indicators

XSHQQQQDifference

Max Drawdown

Largest peak-to-trough decline

-38.33%

-82.97%

+44.64%

Max Drawdown (1Y)

Largest decline over 1 year

-10.27%

-11.96%

+1.69%

Max Drawdown (3Y)

Largest decline over 3 years

-27.34%

-22.77%

-4.57%

Max Drawdown (5Y)

Largest decline over 5 years

-27.34%

-35.12%

+7.78%

Max Drawdown (10Y)

Largest decline over 10 years

—

-35.12%

—

Current Drawdown

Current decline from peak

-1.76%

-0.26%

-1.50%

Average Drawdown

Average peak-to-trough decline

-9.35%

-32.79%

+23.44%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.75%

3.11%

+0.64%

Volatility

XSHQ vs. QQQ - Volatility Comparison

Invesco S&P SmallCap Quality ETF (XSHQ) and Invesco QQQ ETF (QQQ) have volatilities of 4.57% and 4.49%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XSHQQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.57%

4.49%

+0.08%

Volatility (6M)

Calculated over the trailing 6-month period

11.66%

12.10%

-0.44%

Volatility (1Y)

Calculated over the trailing 1-year period

17.43%

15.94%

+1.49%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.23%

22.38%

-1.15%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.13%

22.29%

+0.84%

XSHQ vs. QQQ - Expense Ratio Comparison

XSHQ has a 0.29% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

XSHQ vs. QQQ - Dividend Comparison

XSHQ's dividend yield for the trailing twelve months is around 1.38%, more than QQQ's 0.38% yield.

PositionTTM20252024202320222021202020192018201720162015
QQQ
Invesco QQQ ETF		0.38%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%
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 QQQ have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XSHQ has higher volatility (4.57%) compared to QQQ (4.49%). In terms of maximum drawdown, XSHQ dropped -38.33% vs QQQ's -82.97%.

On 5-year performance, QQQ leads with 17.97% vs 5.96% for XSHQ. On fees, QQQ is cheaper at 0.18% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 5-year period, QQQ has performed better with a 17.97% return vs 5.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QQQ is cheaper with a 0.18% expense ratio, compared with 0.29% for XSHQ.

XSHQ has the higher dividend yield at 1.38%, compared with 0.38% for QQQ.

XSHQ is categorized as Small Cap Growth Equities, while QQQ is Nasdaq-100. XSHQ tracks S&P SmallCap 600 Quality Index, while QQQ tracks NASDAQ-100 Index. Their fees differ too: 0.29% for XSHQ and 0.18% for QQQ.

QQQ currently has the higher Sharpe Ratio (2.64 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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