OUSA’s underlying index is home to eight Dow components with AT&T (NYSE: T) and Philip Morris (NYSE: PM) being the outliers. Johnson & Johnson (NYSE: JNJ), Exxon Mobil (NYSE: XOM) and Apple (NasdaqGS: AAPL) each account for more than 5% of the index’s weight, according to FTSE data.
The index’s three largest sector weights are consumer goods, healthcare and technology. Technology has been one of the primary drivers of S&P 500 dividend growth in recent years. OUSA also offers rising rates protection as utilities, a sector notoriously vulnerable to hawkish changes in Federal Reserve policy, is one of the ETF’s smallest sector allocations. [Quality and Dividends Meet Here]
O’Shares is expected to launch more ETFs based on the same FTSE Russell multi-factor methodology, including developed markets and developed Asia funds.
Chart Courtesy: FTSE Russell
Tom Lydon’s clients own shares of Apple. Todd Shriber owns shares of JNJ.