ETF Evaluator: Invesco S&P SmallCap Hi Div Low Vol ETF (XSHD) Follow This ETF

Invesco S&P SmallCap Hi Div Low Vol ETF Overview

Invesco S&P SmallCap Hi Div Low Vol ETF (XSHD) is a passively managed U.S. Equity Small Value exchange-traded fund (ETF). Invesco launched the ETF in 2016.

The investment seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Low Volatility High Dividend Index (the "underlying index"). The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is designed to measure the performance of approximately 60 securities in the S&P SmallCap 600® Index that historically have provided high dividend yields while exhibiting lower volatility.

About Invesco S&P SmallCap Hi Div Low Vol ETF (XSHD)

There are 3 members of the management team with an average tenure of 8.56 years: Peter Hubbard (2016), Michael Jeanette (2016) and Pratik Doshi (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P Composite 1500 TR USD index with a weighting of 100% and S&P SC 600 Low Vol Hi Div TR USD index with a weighting of 100%. Invesco S&P SmallCap Hi Div Low Vol ETF has 53 securities in its portfolio. The top 10 holdings constitute 33.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Invesco S&P SmallCap Hi Div Low Vol ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Invesco S&P SmallCap Hi Div Low Vol ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 100.2% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco S&P SmallCap Hi Div Low Vol ETF has -0.2% of the portfolio in cash.

Assets Under Management

The fund has $73 million in total assets, which is below the $2 billion average for the Small Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

XSHD Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco S&P SmallCap Hi Div Low Vol ETF expense ratio is below average compared to funds in the Small Value category. Invesco S&P SmallCap Hi Div Low Vol ETF has an expense ratio of 0.30%, which is 37% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco S&P SmallCap Hi Div Low Vol ETF has a portfolio turnover rate of 82%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 61% for the Small Value category.

Recently, in the month of June 2026, Invesco S&P SmallCap Hi Div Low Vol ETF returned 4.3%, which earned it a grade of D, as the Small Value category had an average return of 4.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Invesco S&P SmallCap Hi Div Low Vol ETF has a trailing yield of 5.04%, which is above the 1.78% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco S&P SmallCap Hi Div Low Vol ETF Grades

Year to date, the ETF has returned 13.2%, 4.9 percentage points worse than the category, which translates into a grade of F. The fund has returned 10.8% over the past year (grade of F), 2.1% over the past three years (grade of F) and -3.8% per year over the past five years (grade of F).

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