ALPS O'Shares U.S. Quality Dividend ETF

OUSA

Market cap $750M

If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the ALPS (OUSA), a passively managed exchange traded fund launched on July 14, 2015.

The latest buzz acronym in the investment community, spurred in part by the artificial intelligence (AI) trade, is HALO, or “heavy assets, low obsolescence.” The catchy acronym is relevant to dividend investors because many of the companies in the hard assets realm are dividend payers.

Amid oil-driven volatility and inflation worries, dividend aristocrat ETFs like NOBL draw attention as investors seek steady income and resilient equity exposure.

Oil turmoil, inflation worries and market volatility are reviving interest in dividend growth ETFs that offer steady income and quality exposure.

As is the case in life, there are no sure things in investing. That sentiment certainly applies to dividend stocks.

A smart beta exchange traded fund, the ALPS (OUSA) debuted on 07/14/2015, and offers broad exposure to the Style Box - Large Cap Value category of the market.

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the ALPS (OUSA), a passively managed exchange traded fund launched on July 14, 2015.

This article reviews OUSA, a quality-first large-cap ETF that screens stocks based on return on assets, net debt-to-EBITDA, five-year standard deviation of returns, and five-year dividend growth. Despite being labeled a dividend fund, OUSA's estimated dividend yield is just 1.40%. Its 0.48% expense ratio is a key contributor, and its top five holdings all yield below 1%. Despite excellent quality metrics and improved growth-at-a-reasonable-price statistics, OUSA's risk-adjusted returns lag key peers, including VIG and DGRO.

No market participant, professional or retail, has a crystal ball; none of us can predict the future. However, there are steps ETF issuers can take to position funds for long-term success.

Making its debut on 07/14/2015, smart beta exchange traded fund ALPS (OUSA) provides investors broad exposure to the Style Box - Large Cap Value category of the market.