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XMHQ - ETF AI Analysis

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XMHQ

Invesco S&P MidCap Quality ETF (XMHQ)

Rating:74Outperform
Price Target:
XMHQ, the Invesco S&P MidCap Quality ETF, earns a solid overall rating driven mainly by high-quality mid-cap holdings with strong financial performance and positive earnings trends. Standout positions like TechnipFMC, United Therapeutics, Medpace, NEXTracker, and Royal Gold support the fund’s quality focus through robust growth, healthy balance sheets, and generally favorable technical signals, though some show signs of being potentially overvalued. A key risk is that several top holdings share valuation and overbought concerns, which could make the ETF more sensitive to market pullbacks.
Positive Factors
Strong Leading Holding
The largest position, TechnipFMC, has shown very strong gains this year, giving the fund a performance boost.
Broad Sector Mix
Holdings spread across industrials, health care, financials, technology, and other sectors help reduce reliance on any single industry.
Moderate Costs for an Active Tilt
The expense ratio is modest for a rules-based ETF that targets higher-quality mid-cap stocks, allowing investors to keep more of their returns.
Negative Factors
Concentrated in Top Positions
A meaningful share of assets is in a small group of stocks, so weakness in these names could noticeably affect the fund.
Mixed Performance Among Key Holdings
Some important positions, such as Medpace Holdings, have shown weak results this year, which can drag on overall performance.
Heavy U.S.-Only Exposure
With virtually all assets in U.S. companies, the fund offers little geographic diversification if the U.S. market struggles.

XMHQ vs. SPDR S&P 500 ETF (SPY)

XMHQ Summary

The Invesco S&P MidCap Quality ETF (XMHQ) invests in medium‑sized U.S. companies that score well on measures of financial strength and stability. It follows the S&P MidCap 400 Quality Index, which looks for businesses with strong profits and manageable debt. The fund holds a mix of sectors like industrials, health care, and technology, with companies such as Illumina and Twilio among its top positions. Someone might invest in XMHQ to seek long-term growth and diversification away from only large, well-known stocks. A key risk is that mid-cap stocks can be more volatile and can go up and down sharply with the market.
How much will it cost me?The Invesco S&P MidCap Quality ETF (XMHQ) has an expense ratio of 0.25%, meaning you’ll pay $2.50 per year for every $1,000 invested. This is slightly higher than average for passively managed ETFs because it tracks a specialized index focused on mid-cap companies with strong quality metrics. It’s designed to offer targeted exposure to financially healthy mid-cap stocks.
What would affect this ETF?The Invesco S&P MidCap Quality ETF (XMHQ) could benefit from economic growth in the U.S., particularly in sectors like Industrials and Health Care, which make up a significant portion of its holdings. However, rising interest rates or economic slowdowns could negatively impact mid-cap companies, especially those in cyclical sectors like Consumer Cyclical and Financials. Regulatory changes or shifts in sector-specific trends could also influence the performance of its top holdings, such as Comfort Systems and Medpace Holdings.

XMHQ Top 10 Holdings

XMHQ’s story right now is about a handful of mid-cap standouts doing the heavy lifting. Energy name TechnipFMC and industrial player Sterling Infrastructure are rising sharply, giving the fund a strong tailwind, while Carpenter Technology and solar-tracking specialist NEXTracker add more momentum to the industrial and energy tilt. On the flip side, health care names Illumina and Medpace look mixed to lagging, occasionally tapping the brakes. With all holdings based in the U.S. and a clear lean toward industrials and health care, this ETF is a focused bet on quality-driven American mid-caps.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
TechnipFMC4.90%$255.17M$29.91B161.56%
80
Outperform
United Therapeutics3.93%$204.55M$24.86B90.88%
79
Outperform
Illumina3.58%$186.58M$19.43B66.43%
71
Outperform
Twilio2.88%$149.70M$21.79B49.03%
70
Neutral
Carlisle Companies2.78%$144.47M$14.72B-4.17%
70
Outperform
Carpenter Technology2.71%$140.96M$21.29B115.30%
75
Outperform
Nextpower Inc2.59%$134.81M$18.03B183.75%
78
Outperform
Sterling Infrastructure2.55%$132.53M$15.25B237.96%
71
Outperform
Medpace Holdings2.54%$132.39M$11.72B41.31%
79
Outperform
Royal Gold2.50%$130.01M$21.41B36.06%
78
Outperform

XMHQ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
105.41
Positive
100DMA
105.71
Positive
200DMA
104.29
Positive
Market Momentum
MACD
0.68
Positive
RSI
56.73
Neutral
STOCH
36.80
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XMHQ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 107.08, equal to the 50-day MA of 105.41, and equal to the 200-day MA of 104.29, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 36.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XMHQ.

XMHQ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$5.19B0.25%
74
Outperform
$6.70B0.35%
73
Outperform
$6.45B0.23%
70
Outperform
$5.40B0.41%
70
Outperform
$3.90B0.38%
70
Neutral
$3.46B0.07%
70
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XMHQ
Invesco S&P MidCap Quality ETF
107.97
13.84
14.70%
XMMO
Invesco S&P MidCap Momentum ETF
FMDE
Fidelity Enhanced Mid Cap ETF
JHMM
John Hancock Multifactor Mid Cap ETF
DON
WisdomTree U.S. MidCap Dividend Fund
IVOO
Vanguard S&P Mid-Cap 400 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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