As is par for the course following presidential elections, there's been ample speculation as to what asset classes and sectors will thrive or languish under the incoming Trump administration. Small-cap stocks and related ETFs are among the most mentioned assets as levered to benefits from the “Trump trade.
With multiple rate cuts now in the books for this Fall, and more potentially on the horizon, investors may be looking for responsive ETFs. Small caps have stood out therein, given how much more debt costs impact smaller firms.
Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM), a passively managed exchange traded fund launched on 12/30/2016.
Helped in part by the Federal Reserve's September interest rate cut, small-cap stocks and related ETFs have found solid footing. They're on the receiving end of closer examination by market participants.
Launched on 12/30/2016, the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small Cap Blend category of the market.
Investor interest in small caps is spiking following last month's rate cuts. The possibility of further cuts, too, compounds that growing appeal for smaller firms.
What sets small-caps strategies apart from one another? While the impact of rate cuts may not yet be fully understood, small-caps could be poised to disproportionately benefit.
For decades, risk-tolerant investors searching for added upside and diversification embraced small-cap stocks. Through many of those years, though with added volatility, smaller equities outperformed their larger peers.
Many investors are likely looking to small caps right now, and for good reason. Larger firms remain expensive in the U.S. stock market, with many investors heavily exposed to that category.
The ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) was launched on 12/30/2016, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.
Following a less-than-stellar start to the year, small-cap stocks and the related exchange traded funds recently perked up. For the 90 days ending Aug. 27, the Russell 2000 Index gained 6.9%.
Could now be the time to consider small caps? Rate cuts once again, appear imminent, now backed by explicit comments from Fed Chair Jerome Powell.