Is Invesco S&P SmallCap Quality ETF (XSHQ) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 03 2024
0mins
Should l Buy AWI?
Source: NASDAQ.COM
Invesco S&P SmallCap Quality ETF Overview: Launched in 2017, the Invesco S&P SmallCap Quality ETF (XSHQ) aims to provide exposure to small-cap blend stocks and has accumulated over $331 million in assets, with a focus on high-quality securities based on specific fundamental measures.
Performance and Comparison: The ETF has shown an 8.10% increase this year and a 22.71% rise over the past year, but investors may also consider lower-cost alternatives like iShares Russell 2000 ETF and iShares Core S&P Small-Cap ETF for potentially better returns and lower risk.
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Analyst Views on AWI
About AWI
Armstrong World Industries, Inc. designs, innovates, and manufactures interior and exterior architectural applications, including ceilings, specialty walls and exterior metal solutions. It also manufactures ceiling suspension system (grid) products. Its segments include Mineral Fiber and Architectural Specialties. The Mineral Fiber segment produces suspended mineral fiber and soft fiber ceiling systems. Its mineral fiber products offer various performance attributes, such as acoustical control, rated fire protection, and energy efficiency. The Architectural Specialties segment produces, designs and sources ceilings, walls and other interior and exterior architectural applications for use in commercial settings. Its products are available in metal, felt, wood, resin, wood fiber and glass-reinforced-gypsum in various colors, shapes and designs. It sells standard, premium and customized products. This segment of products is sold primarily to resale distributors and direct customers.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Release Schedule: Armstrong World Industries will release its Q1 2026 earnings results before the market opens on April 28, 2026, and will host a conference call at 10:00 a.m. ET, demonstrating the company's commitment to transparency and investor communication.
- Webcast Availability: The conference call will be available via live webcast on Armstrong's Investor Relations page, encouraging attendees who will not ask questions to connect through the Listen Only link, reflecting the company's efforts in digital communication.
- Participant Registration Requirement: Investors wishing to participate by phone must register in advance to receive dial-in information, a measure aimed at ensuring orderly proceedings and enhancing participant experience during the call.
- Company Background Information: Founded over 165 years ago, Armstrong reported $1.6 billion in revenue for 2025, employing approximately 4,000 people across 24 manufacturing facilities, underscoring its leadership in architectural design and construction solutions.
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- Stake Reduction: On February 17, 2026, London Co disclosed the sale of 269,356 shares of Armstrong World Industries, valued at approximately $51.40 million, indicating a cautious outlook on the company's future performance.
- Asset Value Decline: This reduction resulted in a $61.96 million decrease in the quarter-end value of Armstrong, reflecting diminished market confidence in the stock, which could influence investor decisions.
- Ownership Proportion Change: Following the sale, Armstrong now represents only 2.06% of London Co's reportable assets under management, indicating a decreasing significance in their investment portfolio.
- Company Performance Overview: Despite Armstrong achieving a record $1.6 billion in annual revenue, a 12% increase, concerns arise over its reliance on pricing strategies and acquisitions for growth, raising questions about the sustainability of its future performance.
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- Stake Reduction Details: London Co of Virginia sold 269,356 shares of Armstrong World Industries in Q4 2026, with an estimated transaction value of $51.40 million, reflecting a strategic response to market volatility.
- Value Decline: After the sale, London Co's stake in Armstrong totaled 1,866,241 shares valued at $356.64 million, with the reduction leading to a $61.96 million decline in position value, highlighting challenges in the current market environment.
- Company Performance Overview: Despite Armstrong achieving a record $1.6 billion in annual revenue, a 12% increase, concerns about its growth reliance on pricing strategies and acquisitions have contributed to a 14% drop in stock price this year.
- Investor Caution: Given that Armstrong was not included in The Motley Fool's list of top recommended stocks, investors should carefully consider its future growth potential, especially amidst fluctuations in demand within the construction sector.
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- Oversold Indicator Analysis: Armstrong World Industries Inc. (AWI) has a Relative Strength Index (RSI) of 29.4, falling below the oversold threshold of 30, indicating that the recent decline in stock price may be nearing exhaustion, thus providing potential buying opportunities for investors.
- Price Volatility Impact: On Friday, AWI shares traded as low as $170.681, down from a recent price of $175.57, creating a better investment opportunity for dividend investors seeking higher yields amid this price fluctuation.
- Dividend Yield Assessment: AWI's annualized dividend stands at $1.356 per share, translating to an annual yield of 0.77% based on the current share price, and while dividends are not always predictable, historical performance offers investors a basis for judgment.
- Market Sentiment Shift: With AWI's RSI significantly lower than the average of 52.0 for covered dividend stocks, market sentiment may be shifting, prompting investors to start looking for entry points to capitalize on potential price rebounds.
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- Significant Performance Growth: Armstrong achieved a 12% increase in net sales and a 14% rise in adjusted EBITDA for 2025, marking the third consecutive year of margin expansion, demonstrating strong execution and resilience amid challenging market conditions.
- Strong Mineral Fiber Segment: The segment's adjusted EBITDA grew by 15% in Q4, with an adjusted EBITDA margin reaching 42.1%, despite lower volumes, and a record annual margin of 43.5%, reflecting ongoing efforts in cost control and productivity.
- Clear Capital Allocation Priorities: The company repurchased $50 million in stock and paid $15 million in dividends in Q4, indicating a clear strategy for capital allocation focused on reinvestment, strategic acquisitions, and shareholder returns, with $533 million remaining under share repurchase authorization.
- Optimistic Future Outlook: Management projects net sales growth of 8% to 10% and adjusted EBITDA growth of 8% to 12% for 2026, expressing confidence in strategic continuity and innovation areas despite challenges from seasonality and market volatility.
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- Profit Growth: Armstrong reported a fourth-quarter profit of $65.5 million, translating to earnings per share of $1.51, which marks an increase from last year's $62.2 million and $1.42 per share, indicating sustained improvement in the company's profitability.
- Adjusted Earnings: Excluding special items, Armstrong's adjusted earnings reached $70 million or $1.61 per share, reflecting strong performance in core operations and bolstering investor confidence in the company's financial health.
- Revenue Increase: The company's revenue rose 5.6% year-over-year to $388.3 million, up from $367.7 million last year, demonstrating steady market demand and the effectiveness of the company's sales strategies.
- Market Outlook: With both revenue and profit growth, Armstrong solidifies its competitive position in the industry, which is expected to further attract investor interest and drive future business expansion.
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