XMHQ ETF — Holdings & Analysis

For informational purposes only. Not financial advice.

Quick Answer

The Invesco S&P MidCap Quality ETF (XMHQ) is a $5.00 billion fund seeking to replicate the S&P MidCap 400 Quality Index.

XMHQ focuses on mid-cap companies within the S&P 400 characterized by high-quality scores based on factors like return on equity, accruals ratio, and financial leverage. With an expense ratio of 0.31%, XMHQ offers exposure to a curated basket of approximately 80 mid-cap stocks deemed to have superior quality metrics.

Invesco S&P MidCap Quality ETF (XMHQ) ETF — Price, Holdings & Analysis

The Invesco S&P MidCap Quality ETF (XMHQ) is a $5.00 billion fund seeking to replicate the S&P MidCap 400 Quality Index. XMHQ focuses on mid-cap companies within the S&P 400 characterized by high-quality scores based on factors like return on equity, accruals ratio, and financial leverage. With an expense ratio of 0.31%, XMHQ offers exposure to a curated basket of approximately 80 mid-cap stocks deemed to have superior quality metrics.

ETF Overview

The Invesco S&P MidCap Quality ETF (Fund) is based on the S&P MidCap 400 Quality Index (Index). The Fund will invest at least 90% of its total assets in the component securities that comprise the Index. The Index is a modified market capitalization weighted index that holds approximately 80 securities in the S&P Midcap 400 Index that have the highest quality scores, which are computed based on a composite of three proprietary factors. The Fund and the Index are rebalanced semi-annually.

XMHQ aims to provide investors with exposure to mid-sized U.S. companies exhibiting strong quality characteristics. The fund tracks the S&P MidCap 400 Quality Index, which selects approximately 80 stocks from the S&P MidCap 400 based on a composite quality score. This score is derived from factors evaluating profitability, earnings quality, and balance sheet strength. The fund invests at least 90% of its assets in securities within the index. Top holdings include TechnipFMC PLC (4.31%), Illumina Inc (3.73%), and United Therapeutics Corp (3.48%). Sector allocation is heavily weighted towards Industrials (25.9%), Healthcare (20.0%), and Financial Services (15.1%). XMHQ is rebalanced semi-annually. This ETF may appeal to investors seeking a quality-focused approach to mid-cap equity exposure, potentially offering a more resilient portfolio compared to broader market indices. Past performance does not guarantee future results.

Risk Metrics

XMHQ, while diversified across approximately 80 holdings, exhibits some concentration risk with its top 10 holdings accounting for roughly 28.6% of the fund's assets. Sector allocation also presents a risk, with significant exposure to Industrials and Healthcare, making the fund sensitive to sector-specific downturns. The fund's beta of 1.14 indicates that it is more volatile than the broader market. The expense ratio of 0.31% will create a slight drag on performance over time. These factors when evaluating XMHQ's suitability for their portfolio may be worth researching. Past performance does not guarantee future results.

Expense Ratio

0.31%

What does XMHQ hold?

Holding	Weight
TechnipFMC PLC (FTI)	4.31%
Illumina Inc (ILMN)	3.73%
United Therapeutics Corp (UTHR)	3.48%
Royal Gold Inc (RGLD)	3.03%
Carlisle Companies Inc (CSL)	3.02%
Medpace Holdings Inc (MEDP)	2.71%
Carpenter Technology Corp (CRS)	2.50%
Twilio Inc Class A (TWLO)	2.43%
BWX Technologies Inc (BWXT)	2.21%
Nextpower Inc Class A (NXT)	2.21%

How Is the Fund Allocated?

Sector	Weight
Industrials	25.9%
Healthcare	20.0%
Financial Services	15.1%
Technology	11.4%
Consumer Cyclical	10.2%
Energy	6.0%
Basic Materials	5.4%
Consumer Defensive	3.9%
Utilities	2.2%

Country	Weight
United States	91.3%
United Kingdom	4.3%
Bermuda	3.3%
Sweden	1.1%

Dividend Yield

0.61%

iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
ARK Innovation ETF (ARKK) — 0.75% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

Invesco QQQ Trust, Series 1 (QQQ) (Equity) — 0.18% expense ratio
Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) (Equity) — 0.39% expense ratio
Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) (Equity) — 0.47% expense ratio
Invesco Taxable Municipal Bond ETF (BAB) (Fixed Income) — 0.28% expense ratio
Invesco ESG S&P 500 Equal Weight ETF (RSPE) (Equity) — 0.20% expense ratio
Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) (Equity) — 0.60% expense ratio

Risk Metrics

Beta: 1.14

Questions & Answers

What is XMHQ and what does it track?

The Invesco S&P MidCap Quality ETF (XMHQ) is an exchange-traded fund that aims to replicate the performance of the S&P MidCap 400 Quality Index.

This index is composed of approximately 80 stocks from the S&P MidCap 400 Index that exhibit the highest quality scores.

What is the expense ratio for XMHQ?

The expense ratio for XMHQ is 0.31%. This means that for every $10,000 invested in the fund, investors will pay $31 in annual fees to cover the fund's operating expenses.

While this is not the lowest expense ratio available in the equity ETF universe, it is competitive within the mid-cap quality ETF category.

What are the top holdings in XMHQ?

As of 2026-03-15, the top holdings in XMHQ include TechnipFMC PLC, comprising 4.31% of the fund's assets. Illumina Inc represents 3.73% of the portfolio, followed by United Therapeutics Corp at 3.48%.

Royal Gold Inc accounts for 3.03% and Carlisle Companies Inc rounds out the top 5 at 3.02%. These holdings reflect the fund's focus on companies with strong quality metrics within the mid-cap space.

Is XMHQ a good long-term investment?

XMHQ's suitability as a long-term investment depends on an individual investor's risk tolerance, investment goals, and time horizon.

The fund's focus on quality mid-cap companies may offer a degree of downside protection during market downturns, but its beta of 1.14 suggests it can be more volatile than the broader market.

How does XMHQ compare to similar ETFs?

XMHQ differentiates itself through its focus on quality factors within the S&P MidCap 400 Index. Other mid-cap ETFs may track different indices, employ different weighting methodologies, or focus on different investment themes such as growth or value.

XMHQ's expense ratio of 0.31% is competitive with other quality-focused mid-cap ETFs. The fund's AUM of $5.00 billion indicates a substantial investor interest.

Does XMHQ pay dividends?

Yes, XMHQ does pay dividends. The current dividend yield for XMHQ is 0.61%. This means that for every $100 invested in the fund, investors can expect to receive $0.61 in dividend payments annually.

It's important to note that dividend yields can fluctuate over time depending on the performance of the underlying holdings and the fund's distribution policy. Investors seeking income may find XMHQ's dividend yield an attractive feature.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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