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Should ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) Be on Your Investing Radar?
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Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM - Free Report) is a passively managed exchange traded fund launched on 12/30/2016.
The fund is sponsored by Alps. It has amassed assets over $520.13 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.48%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.59%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Consumer Discretionary sector--about 22.90% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Williams-Sonomainc. (WSM - Free Report) accounts for about 2.57% of total assets, followed by Marketaxessholdingsinc. (MKTX - Free Report) and Teleflexinc. (TFX - Free Report) .
The top 10 holdings account for about 20.87% of total assets under management.
Performance and Risk
OUSM seeks to match the performance of the FTSE Russell US Qual / Vol / Yield Factor 3% Capped Index before fees and expenses. The OShares U.S. Small-Cap Quality Dividend Index is designed to reflect the performance of publicly-listed small-capitalization dividend-paying issuers in the United States exhibiting high quality, low volatility and high dividend yields.
The ETF return is roughly 3.10% so far this year and was up about 15.09% in the last one year (as of 02/27/2024). In the past 52-week period, it has traded between $33.36 and $40.43.
The ETF has a beta of 1.06 and standard deviation of 16.87% for the trailing three-year period. With about 108 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS O'Shares U.S. Small-Cap Quality Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, OUSM is an outstanding option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 ETF (IWM - Free Report) and the iShares Core S&P Small-Cap ETF (IJR - Free Report) track a similar index. While iShares Russell 2000 ETF has $62.98 billion in assets, iShares Core S&P Small-Cap ETF has $76.82 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) Be on Your Investing Radar?
Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM - Free Report) is a passively managed exchange traded fund launched on 12/30/2016.
The fund is sponsored by Alps. It has amassed assets over $520.13 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.48%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.59%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Consumer Discretionary sector--about 22.90% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Williams-Sonomainc. (WSM - Free Report) accounts for about 2.57% of total assets, followed by Marketaxessholdingsinc. (MKTX - Free Report) and Teleflexinc. (TFX - Free Report) .
The top 10 holdings account for about 20.87% of total assets under management.
Performance and Risk
OUSM seeks to match the performance of the FTSE Russell US Qual / Vol / Yield Factor 3% Capped Index before fees and expenses. The OShares U.S. Small-Cap Quality Dividend Index is designed to reflect the performance of publicly-listed small-capitalization dividend-paying issuers in the United States exhibiting high quality, low volatility and high dividend yields.
The ETF return is roughly 3.10% so far this year and was up about 15.09% in the last one year (as of 02/27/2024). In the past 52-week period, it has traded between $33.36 and $40.43.
The ETF has a beta of 1.06 and standard deviation of 16.87% for the trailing three-year period. With about 108 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS O'Shares U.S. Small-Cap Quality Dividend ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, OUSM is an outstanding option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 ETF (IWM - Free Report) and the iShares Core S&P Small-Cap ETF (IJR - Free Report) track a similar index. While iShares Russell 2000 ETF has $62.98 billion in assets, iShares Core S&P Small-Cap ETF has $76.82 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.