You’re not dead to him, at least not yet, but you may be if you don’t buy his first exchange traded fund. Kidding aside, “Shark Tank” star Kevin O’Leary makes his initial foray into the ETF business today with the debut of the O’Shares FTSE US Quality Dividend ETF (NYSEArca: OUSA).
“O’Shares was formed by Connor O’Brien, CEO, and ABC Shark Tank investor Kevin O’Leary, Chairman, who together also co-founded O’Leary Funds, an investment fund manager focused on income, capital appreciation and wealth preservation that has grown to approximately $900 million in assets under management,” according to a statement.
O’Leary’s ETF debut, with a passive fund no less, is a departure from the firm’s usual strategies, which include 22 mutual funds and four closed end funds.
O’Leary, also known by “Shark Tank” fans and contestants as Mr. Wonderful for his unbridled candor, has drawn the ire of more than a few contestants on the show for offering deals centered on long-term royalty payments. In other words, O’Leary is looking for reward for the risk he is taking on various entrepreneurs and those royalties, which can be seen as equivalents to dividends, compensate him for that risk.
Fortunately for investors, O’Leary is a devoted dividend investor. He has even said he would pass on Google (NasdaqGS: GOOG) until the Internet giant starts paying a dividend and several of his firm’s mutual funds are dividend-focused.
The O’Shares FTSE US Quality Dividend ETF cements O’Leary’s dividend commitment. OUSA tracks the FTSE US Qual / Vol / Yield Factor Index, an expansion of FTSE Russell’s FTSE Global Factor Index Series. The index seizes on three prominent themes in the ETF community: Dividends along with the low volatility and quality factors. [The Right Dividend ETF for the Times]
“We believe now is the time to provide our time tested investment principles though a simple, transparent, efficient and cost effective index-based investment product. So we are launching our new family of global index-based ETFs for investors and joining forces with leading global index provider FTSE Russell,” said O’Leary in a statement issued by FTSE Russell.