A Quality Developed Market ETF Strategy for Income Investors

Expanding on its line of quality dividend exchange traded fund strategies, O’Shares has launched a new ETF to help investors track strong developed market companies outside the U.S.

On Wednesday, O’Shares ETF Investments rolled out the O’Shares FTSE Russell International Quality Dividend ETF (NYSEArca: ONTL). ONTL has a 0.48% total expense ratio.

The new international quality dividend ETF will try to reflect the performance of the FTSE Developed ex US Qual/Vol/Yield 5% Capped Factor Index, which is comprised of large- and mid-cap dividend-paying international companies that exhibit high quality, low volatility and high dividend yield factors.

“The quality and low volatility factors are designed to reduce exposure to high dividend equities that have experienced large price declines as may occur with some dividend investing strategies,” according to the ONTL’s prospectus sheet.

High-dividend yielding stocks typically expose investors to greater risk as some may not be able to maintain their high payouts. Consequently, the high quality and low volatility screens may help diminish the risk while still allowing investors to gain exposure to high yields.