What is the main difference between XMHQ and XMMO strategies?

XMHQ focuses on the quality factor, targeting mid-cap companies with strong financial health and stable earnings. XMMO focuses on momentum, selecting mid-cap stocks with strong recent performance trends. These distinct strategies aim to capture different market segments. XMHQ seeks resilience through fundamental strength, while XMMO targets growth potential driven by price trends. Investors choose based on their market view, either favouring quality stability or momentum growth. This makes them suitable for different portfolio objectives.

How do ETF expense ratios like XMHQ and XMMO differ?

Expense ratios represent annual operating fees deducted from an ETF's assets. XMHQ has a 0.25% expense ratio, while XMMO's is 0.34%, a 0.09 percentage point difference. This lower cost in XMHQ could potentially result in higher net returns over time, assuming similar performance. However, factors like fund performance and tax efficiency also influence final outcomes. Comparing costs is essential, but not the sole consideration.

Which ETF has more substantial net assets, and what does it signify?

XMMO holds $7.0 billion in net assets, exceeding XMHQ's $5.9 billion. Larger asset bases often indicate greater investor interest and typically improve liquidity by facilitating trading with smaller bid-ask spreads and lower market impact for larger orders. Higher liquidity can make trading these ETFs more efficient for investors.

How do the dividend yields compare for XMHQ and XMMO?

XMMO offers a 0.67% dividend yield, slightly higher than XMHQ's 0.58%. Both yields are modest, aligning with their mid-cap focus. Dividend yields represent the annualised return from distributions relative to price. However, distributions vary and are not guaranteed. Investors seeking higher income should consider broader options.

What are the inception dates of XMHQ and XMMO?

XMHQ launched on December 1, 2006, and XMMO on March 3, 2005. Their different inception dates provide distinct track records of performance and volatility for each factor strategy. Understanding the time each has been active aids in assessing their historical resilience and growth trajectory.

What are the shared top 10 holdings between XMHQ and XMMO?

XMHQ and XMMO have three stocks among their top 10 holdings: FTI, NVT, and CW. This overlap demonstrates a degree of common exposure despite their different strategies. Such overlap is natural as both target mid-cap stocks.

What are the top holdings of XMHQ?

XMHQ's top holdings include ILMN (5.03%), P (4.41%), and FTI (4.20%). These specific stock weights reflect the fund's focus on mid-cap companies with strong fundamentals and high quality metrics, as identified by its screening process.

Are there concentration risks in XMHQ?

Yes, XMHQ shows concentration risk in its top holdings. For example, ILMN holds a 5.03% weight and P holds 4.41%, representing a significant portion of the fund. This concentration means the ETF's performance can be notably influenced by the individual stock movements, potentially increasing volatility or specific risk.

What should investors know about the expense ratio for XMMO?

XMMO has an expense ratio of 0.34%. This is slightly higher than many core mid-cap blend funds. The reason for this expense ratio is that it is a factor-based ETF, and these strategies often carry costs related to more complex underlying indices and frequent portfolio adjustments to maintain their targeted performance.

What is the dividend yield for XMHQ?

XMHQ provides a dividend yield of 0.58%. This is relatively low, particularly for income-oriented investors. This yield reflects the nature of a mid-cap quality focus, where companies often reinvest earnings for growth rather than distributing them as high dividends.

What is a potential underperformance scenario for XMMO?

Momentum strategies like XMMO's can underperform during market regime shifts. If the market environment changes suddenly, previously winning stocks might falter while previously underperforming stocks surge. This rapid reversal could lead to the fund experiencing losses.

XMHQ vs XMMO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare XMHQ and XMMO for fees, holdings, dividends, and tracking. XMHQ, from Invesco, tracks quality; XMMO, also from Invesco, tracks momentum. See which suits your style. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

XMHQ

Metric

XMMO

0.25%

Expense Ratio

0.34%

0.58%

Dividend Yield

0.67%

$5.91B

Net Assets

$7.04B

Holdings

Dec 1, 2006

Inception Date

Mar 3, 2005

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Index Tracked

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Mid-Cap Blend

Fund Category

Mid-Cap Blend

XMHQ costs about $9.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	XMHQ	XMMO
FTITechnipFMC plc	4.20%	3.87%
NVTnVent Electric plc	2.88%	2.89%
CWCurtiss-Wright Corporation	2.52%	3.48%

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Investment Analysis

XMHQ

Pros

Mid-cap quality focus potentially offers stability through established companies with strong fundamentals.
Expense ratio of 0.25% is competitive for a specialty mid-cap quality strategy.
Substantial net assets of $5.9 billion suggest good liquidity for larger trades.

Considerations

Specific index methodology is not available, limiting transparency on quality screen.
Dividend yield of 0.58% is relatively low for income-oriented investors.
Concentration risk exists in top holdings, as ILMN at 5.03% and P at 4.41% are significant weights.

XMMO

Pros

Mid-cap momentum focus aims to capitalise on stocks with strong recent performance trends.
Large asset base of $7.0 billion indicates significant investor interest and trading volume.
0.34% expense ratio is acceptable for a factor-based strategy, despite being higher than XMHQ's 0.25%.

Considerations

Lack of available sector weight data obscures the fund's current sector exposure.
Higher expense ratio of 0.34% compared to many core mid-cap blend funds.
Momentum strategies can underperform during market regime shifts, as recent winners may falter.

About XMHQ and XMMO

XMHQ (XMHQ)

The Invesco S&P Midcap Quality ETF is designed to provide investors with exposure to mid-cap U.S. equities selected based on their quality characteristics. The fund typically targets companies that demonstrate strong fundamental metrics, such as high returns on equity, stable earnings growth, and low debt levels, while avoiding overvalued stocks. By focusing on quality within the mid-cap sector, it aims to offer a potentially more resilient investment option compared to standard market-cap-weighted indices. With an expense ratio of 0.25%, it represents a moderate cost for specialised factor investing. The ETF currently holds 82 stocks and has net assets of approximately USD 5.91 billion. Its dividend yield sits around 0.58%, reflecting a growth-oriented focus rather than high income. As with all equity investments, values can fluctuate, and past performance does not guarantee future results. It serves as a tool for those looking to diversify their portfolio with high-quality mid-sized companies.

XMMO (XMMO)

The Invesco S&P MidCap Momentum ETF aims to track an index composed of mid-capitalisation stocks demonstrating strong price momentum. Investors might consider this fund for potential growth opportunities associated with established yet dynamic companies. With an expense ratio of 0.34%, the fund provides exposure to 77 holdings in the mid-cap blend category. Launched in March 2005, it currently manages approximately USD 7.04 billion in net assets. While the fund offers a modest dividend yield of 0.67%, its primary focus remains on capital appreciation. As with any investment, values can fluctuate based on market conditions, and past performance does not guarantee future results. Always consider personal financial circumstances and seek independent advice before investing.

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XMHQ vs XMMO

Fund Snapshot