XSHQ vs. QQQM

Last updated Jun 4, 2026

XSHQ (Invesco S&P SmallCap Quality ETF) and QQQM (Invesco NASDAQ 100 ETF) are both exchange-traded funds - XSHQ is a Small Cap Growth Equities fund tracking the S&P SmallCap 600 Quality Index, while QQQM 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 18.07%/yr for QQQM. A 0.59 correlation means they provide meaningful diversification when combined. XSHQ charges 0.29%/yr vs 0.15%/yr for QQQM.

Performance

XSHQ vs. QQQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Quality ETF (XSHQ) and Invesco NASDAQ 100 ETF (QQQM). 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 lower than QQQM's 21.39% return.

XSHQ

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

QQQM

• 1D: -0.20%
• 1M: 10.67%
• YTD: 21.39%
• 6M: 19.75%
• 1Y: 41.98%
• 3Y*: 28.89%
• 5Y*: 18.07%
• 10Y*: —

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

XSHQ vs. QQQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
XSHQ Invesco S&P SmallCap Quality ETF	9.09%	0.89%	7.49%	23.88%	-15.01%	23.99%	17.03%
QQQM Invesco NASDAQ 100 ETF	21.39%	20.85%	25.68%	55.01%	-32.52%	27.45%	6.67%

Correlation

The correlation between XSHQ and QQQM 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	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (All Time) Calculated using the full available price history since Oct 14, 2020	0.59

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

XSHQ vs. QQQM - Sectors Allocation Comparison

Sectors	XSHQ	QQQM
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%

Return for Risk

XSHQ vs. QQQM — 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

QQQM

QQQM Risk / Return Rank: 74
QQQM Sharpe Ratio Rank: 80
QQQM Sortino Ratio Rank: 75
QQQM Omega Ratio Rank: 75
QQQM Calmar Ratio Rank: 69
QQQM Martin Ratio Rank: 71

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. QQQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Quality ETF (XSHQ) and Invesco NASDAQ 100 ETF (QQQM). 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	QQQM	Difference
Sharpe ratio: Return per unit of total volatility	0.88	2.65	-1.78
Sortino ratio: Return per unit of downside risk	1.42	3.46	-2.04
Omega ratio: Gain probability vs. loss probability	1.16	1.45	-0.30
Calmar ratio: Return relative to maximum drawdown	1.48	3.53	-2.04
Martin ratio: Return relative to average drawdown	4.06	13.52	-9.46
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. QQQM - Sharpe Ratio Comparison

The current XSHQ Sharpe Ratio is 0.88, which is lower than the QQQM Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of XSHQ and QQQM, 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	QQQM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.88	2.65	-1.78
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.82	-0.54
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.85	-0.48

Drawdowns

XSHQ vs. QQQM - Drawdown Comparison

The maximum XSHQ drawdown since its inception was -38.33%, which is greater than QQQM's maximum drawdown of -35.04%. Use the drawdown chart below to compare losses from any high point for XSHQ and QQQM.

Drawdown Indicators

	XSHQ	QQQM	Difference
Max Drawdown Largest peak-to-trough decline	-38.33%	-35.04%	-3.29%
Max Drawdown (1Y) Largest decline over 1 year	-10.27%	-11.96%	+1.69%
Max Drawdown (3Y) Largest decline over 3 years	-27.34%	-22.70%	-4.64%
Max Drawdown (5Y) Largest decline over 5 years	-27.34%	-35.04%	+7.70%
Current Drawdown Current decline from peak	-1.76%	-0.20%	-1.56%
Average Drawdown Average peak-to-trough decline	-9.35%	-8.25%	-1.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.75%	3.11%	+0.64%

Volatility

XSHQ vs. QQQM - Volatility Comparison

Invesco S&P SmallCap Quality ETF (XSHQ) and Invesco NASDAQ 100 ETF (QQQM) have volatilities of 4.57% and 4.48%, 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.

Volatility by Period

	XSHQ	QQQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.57%	4.48%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	11.66%	12.05%	-0.39%
Volatility (1Y) Calculated over the trailing 1-year period	17.43%	15.91%	+1.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.23%	22.24%	-1.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.13%	22.12%	+1.01%

XSHQ vs. QQQM - Expense Ratio Comparison

XSHQ has a 0.29% expense ratio, which is higher than QQQM's 0.15% expense ratio.

Dividends

XSHQ vs. QQQM - Dividend Comparison

XSHQ's dividend yield for the trailing twelve months is around 1.38%, more than QQQM's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
QQQM Invesco NASDAQ 100 ETF	0.41%	0.50%	0.61%	0.65%	0.83%	0.40%	0.16%	0.00%	0.00%	0.00%
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 QQQM in my portfolio?

XSHQ and QQQM 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.

Which is riskier, XSHQ or QQQM?

XSHQ has higher volatility (4.57%) compared to QQQM (4.48%). In terms of maximum drawdown, XSHQ dropped -38.33% vs QQQM's -35.04%.

Which ETF is better, XSHQ or QQQM?

On 5-year performance, QQQM leads with 18.07% vs 5.96% for XSHQ. On fees, QQQM is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSHQ or QQQM?

Over the 5-year period, QQQM has performed better with a 18.07% 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 QQQM?

QQQM is cheaper with a 0.15% expense ratio, compared with 0.29% for XSHQ.

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

XSHQ has the higher dividend yield at 1.38%, compared with 0.41% for QQQM.

What is the main difference between XSHQ and QQQM?

XSHQ is categorized as Small Cap Growth Equities, while QQQM is Nasdaq-100. XSHQ tracks S&P SmallCap 600 Quality Index, while QQQM tracks NASDAQ-100 Index. Their fees differ too: 0.29% for XSHQ and 0.15% for QQQM.

Which has better risk-adjusted returns?

QQQM currently has the higher Sharpe Ratio (2.65 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.