The Invesco S&P SmallCap Value with Momentum ETF (XSVM) was launched on March 3, 2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $643.42 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.37%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.79%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector — about 49.7% of the portfolio. Consumer Discretionary and Energy round out the top three.
Looking at individual holdings, Kohl’s Corp (KSS) accounts for about 2.45% of total assets, followed by Lincoln National Corp (LNC) and Marinemax Inc (HZO).
The top 10 holdings account for about 15.28% of total assets under management.
Performance and Risk
XSVM seeks to match the performance of the S&P 600 HIGH MOMENTUM VALUE INDEX before fees and expenses. The S&P 600 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell 2000 Index.
The ETF has gained about 22.96% so far this year and is up about 24.21% in the last one year (as of 09/03/2026). In the past 52-week period, it has traded between $53.15 and $72.72.
The ETF has a beta of 0.99 and standard deviation of 20.38% for the trailing three-year period. With about 120 holdings, it effectively diversifies company-specific risk.
