Making its debut on 12/30/2016, smart beta exchange traded fund ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) provides investors broad exposure to the Style Box - Small Cap Blend category of the market.
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the ALPS O'Shares US Small-Cap Quality Dividend ETF (OUSM) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.
VettaFi's Head of Research Todd Rosenbluth discussed the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit the ETF Building Blocks Channel.
Many investors are watching closely for rate cuts to arrive this Fall. Those keeping a close watch likely understand that rate cuts may benefit certain areas more than others.
Everyone has a take on the ongoing discourse on rate cuts. Whether the Fed will drop a rate cut at its next meeting or slow-roll them with just one this year and more next, investors are looking at their options.
ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) focuses on quality, low-volatility dividend-paying small-cap US companies. OUSM's equity portfolio is well diversified with 106 holdings, including companies like Juniper Networks and New York Times Co. OUSM has outperformed the S&P Small-Cap 600 Value ETF and has a slight edge due to its sector allocation and emphasis on quality.
There's been a lot of talk about the struggles of small-caps. But for the 12 months ending July 3, the average return posted by the widely followed Russell 2000 and S&P SmallCap 600 indexes was 8.3%.
With large-cap growth stocks garnering most of the attention, it's not surprising that many investors are overlooking opportunities in the small-cap value space. Interestingly, for the year ending June 26, the Russell 2000 Value Index modestly outpace the broader Russell 2000.
Small- and midcap stocks have picked up some notable interest of late. But what kind of strategy can get the best out of small-cap stocks?
As measured by the Russell 2000 Index, small-caps have barely offered any upside this year. That indicates the asset class hasn't been worth the risk relative to large-caps.
The ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) made its debut on 12/30/2016, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend category of the market.
Small cap opportunities may be hard to find amid a higher for longer interest rate regime. Often, smaller firms, particularly in tech, are valued based on future revenue and take on big debt to develop more revenue later.