ALPS O’Shares U.S. Quality Dividend ETF (OUSA)

Overview

The company operates in the financial industry, focusing on providing investment opportunities that cater to individuals and institutions looking for exposure to the U.S. equity market, emphasizing dividends, quality, and low volatility. It derives its investment strategy from an index created and managed by O'Shares Investment Advisers, LLC. This index is tailored to track the performance of U.S. large-cap and mid-cap dividend-paying companies that satisfy specific criteria, including market capitalization, liquidity, quality standards, low volatility levels, and attractive dividend yields. The company commits to investing at least 80% of its total assets in the securities that comprise the underlying index, ensuring that its portfolio mirrors the desired market segments and performance characteristics outlined by the index provider.

Products and Services

Within its portfolio, the company offers an investment fund that adheres to a distinct approach, incorporating several criteria for selecting investments:

• Large-Capitalization and Mid-Capitalization Dividend-Paying Issuers: The fund focuses on investing in U.S.-based companies that are classified as large or mid-sized in terms of market capitalization and have a history of paying dividends. This strategy aims to provide investors with a balance of growth and income, recognizing the potential for both capital appreciation and dividend income.
• Market Capitalization and Liquidity: Companies included in the underlying index and, by extension, the fund's portfolio, must meet defined market capitalization thresholds. These parameters ensure that the fund invests in companies that are sufficiently large and liquid, indicating a level of stability and the ability to easily buy or sell shares without significant price impact.
• High Quality and Low Volatility: The index provider applies filters to select companies that demonstrate high quality and low volatility characteristics. Quality is assessed based on factors like stable earnings, strong balance sheets, and reliable dividends. Low volatility means that the investments tend to have smaller price fluctuations compared to the broader market, aiming to reduce risk and provide more predictable returns.
• Dividend Yield Thresholds: The selection process also includes assessing the dividend yield of potential investments. Companies must offer attractive dividend yields relative to the market and their sector peers, ensuring that the fund's constituents provide a meaningful income component to investors. This feature is particularly appealing to those seeking regular income streams from their investments.