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Is ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) a Strong ETF Right Now?
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A smart beta exchange traded fund, the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM - Free Report) debuted on 12/30/2016, and offers broad exposure to the Style Box - Small Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $826.51 million, this makes it one of the average sized ETFs in the Style Box - Small Cap Blend. OUSM is managed by Alps. OUSM, before fees and expenses, seeks to match the performance of the FTSE Russell US Qual / Vol / Yield Factor 3% Capped Index.
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.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.95%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For OUSM, it has heaviest allocation in the Financials sector --about 21.6% of the portfolio --while Industrials and Information Technology round out the top three.
Looking at individual holdings, Badger Meter Inc. (BMI) accounts for about 2.31% of total assets, followed by Concentra Group Holdings Parent Inc. (CON) and Hasbro Inc. (HAS).
OUSM's top 10 holdings account for about 21.48% of its total assets under management.
Performance and Risk
Year-to-date, the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF has added about 14.97% so far, and is up about 14.94% over the last 12 months (as of 11/13/2026). OUSM has traded between $42.12 $50.36 in this past 52-week period.
The ETF has a beta of 0.90 and standard deviation of 14.83% for the trailing three-year period. With about 110 holdings, it effectively diversifies company-specific risk .
Alternatives
ALPS O'Shares U.S. Small-Cap Quality Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Morningstar Small-Cap ETF (VB) tracks CRSP US Small Cap Index and the iShares Core S&P Small-Cap ETF (IJR) tracks S&P SmallCap 600 Index. Vanguard Morningstar Small-Cap ETF has $79.14 billion in assets, iShares Core S&P Small-Cap ETF has $105.93 billion. VB has an expense ratio of 0.03% and IJR changes 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Blend
Bottom Line
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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Is ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) a Strong ETF Right Now?
A smart beta exchange traded fund, the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM - Free Report) debuted on 12/30/2016, and offers broad exposure to the Style Box - Small Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $826.51 million, this makes it one of the average sized ETFs in the Style Box - Small Cap Blend. OUSM is managed by Alps. OUSM, before fees and expenses, seeks to match the performance of the FTSE Russell US Qual / Vol / Yield Factor 3% Capped Index.
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.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.95%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For OUSM, it has heaviest allocation in the Financials sector --about 21.6% of the portfolio --while Industrials and Information Technology round out the top three.
Looking at individual holdings, Badger Meter Inc. (BMI) accounts for about 2.31% of total assets, followed by Concentra Group Holdings Parent Inc. (CON) and Hasbro Inc. (HAS).
OUSM's top 10 holdings account for about 21.48% of its total assets under management.
Performance and Risk
Year-to-date, the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF has added about 14.97% so far, and is up about 14.94% over the last 12 months (as of 11/13/2026). OUSM has traded between $42.12 $50.36 in this past 52-week period.
The ETF has a beta of 0.90 and standard deviation of 14.83% for the trailing three-year period. With about 110 holdings, it effectively diversifies company-specific risk .
Alternatives
ALPS O'Shares U.S. Small-Cap Quality Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Morningstar Small-Cap ETF (VB) tracks CRSP US Small Cap Index and the iShares Core S&P Small-Cap ETF (IJR) tracks S&P SmallCap 600 Index. Vanguard Morningstar Small-Cap ETF has $79.14 billion in assets, iShares Core S&P Small-Cap ETF has $105.93 billion. VB has an expense ratio of 0.03% and IJR changes 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Blend
Bottom Line
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.