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Dividend ETF (OUSA) Hits New 52-Week High

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For investors seeking momentum, O'Shares FTSE US Quality Dividend ETF (OUSA - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 20.1% from its 52-week low price of $28.34/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

OUSA in Focus    

This fund tracks the FTSE US Qual/Vol/Yield Factor 5% Capped Index, which measures the performance of publicly-listed, large-capitalization and mid-capitalization dividend-paying issuers in the United States that meet certain market capitalization, liquidity, high quality, low volatility and dividend yield thresholds, as determined by FTSE Russell. It has key holdings in consumer goods, healthcare, industrials, technology and consumer services with double-digit exposure each. The fund charges 48 basis points in annual fees (see: all the Large Cap Value ETFs here).

Why the Move?

The dividend corner of the broad U.S. stock market has been an area to watch lately given the bouts of volatility that have raised the appeal for dividend investing. Dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. This is because dividend products offer the best combination of safety in the form of payouts and stability as these are less immune to the large swings in stock prices. Additionally, the Fed’s shift to a patient approach on interest rates after lifting rates for three years has returned the lure for dividend investing this year.

More Gains Ahead?

Currently, OUSA has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance will continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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