O’Shares as an issuer has impressively raised more than $349 million in assets in a relatively short amount of time since inception, with the lion’s share of these assets residing in OUSA (Expense Ratio 0.48%, $285 million in AUM, Yield 2.19%).
OUSA has outperformed the S&P 500 since inception, although the data is limited to about 13 months of live performance. When we delve into fund literature we see the following, which helps explain the strategy behind OUSA:
“OUSA is focused not only on strong dividends, but also low volatility to avoid high risk stocks and quality stocks to avoid companies with high leverage and poor earnings quality.”
Furthermore, in reference to the index that OUSA is based on, known as the FTSE U.S. Quality Dividend Index, it is further explained with:
“The Target Index is designed to measure the performance of publicly-listed large capitalization and mid-capitalization dividend-paying issuers in the United States that meet certain requirements for market capitalization, liquidity, high quality, low volatility and dividend yield, as determined by FTSE-Russell (the “Index Provider”). The high quality and low volatility requirements are designed to reduce exposure to high dividend equities that have experienced large price declines, as may occur with some dividend investing strategies.”
Top holdings within OUSA are very familiar “Large-Cap Value” names, appearing as follows: 1) JNJ (5.44%), 2) XOM (4.99%) 3) VZ (4.26%), 4) T (4.23%), 5) MSFT (3.78%), 6) PG (3.44%), 7) PFE (3.06%), 8) PM (3.04%), 9) CVX (2.99%), and 10) PEP (2.34%).
Other funds in the O’Shares lineup that we will look to cover in more depth in a future date are as follows: OEUR (O’Shares FTSE Europe Quality Dividend, Expense Ratio 0.58%, $38 million in AUM), OEUH (O’Shares FTSE Europe Quality Dividend Hedged, Expense Ratio 0.68%, $14.8 million in AUM), OASI (O’Shares FTSE Asia Pacific Quality Dividend, Expense Ratio 0.58%, $6.7 million in AUM), and OAPH (O’Shares FTSE Asia Pacific Quality Dividend Hedged, Expense Ratio 0.68%, $3.9 million in AUM).
OUSA shares fell $0.10 (-0.36%) to $27.56 per share in morning trading today. OUSA has gained about 10% year-to-date, versus a 7% rise in the S&P 500 during the same period.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.