Through the first four months of this year, the White House’s often-harsh treatment of U.S. trading partners was a headwind for equity investors. For now, it appears to be on the back burner. But the U.S. and China haven’t yet reached a firm trade deal. That means tariffs could make headlines again. It’d be best if that scenario didn’t come to life. But there are avenues for investors looking to buffer against and capitalize on some of President Trump’s policies. Those avenues include value stocks.
Value stocks are an asset class some market observers believe could benefit from policies such as deregulation, manufacturing reshoring, and tariffs.
That take might surprise investors. That’s because it’s been growth equities, including the Magnificent Seven, that have propelled the broader market higher in recent weeks. Fortunately, investors can nibble at growth and value via the the ALPS O’Shares U.S. Quality Dividend ETF (OUSA).
OUSA is pertinent as a policy play because it’s not a dedicated growth or value ETF. Rather, it has smatterings of both factors, though likely more of the latter. However, its top 10 holdings feature three of the Magnificent Seven stocks. Overall, tech accounts for 23.20% of OUSA’s weight. But the ETF offers plenty when it comes to value exposure, too.
OUSA Right for the Times
OUSA allocates nearly 17% of its roster to financial services stocks, which are usually viewed through a value lens. The sector could be a beneficiary of Trump’s domestic economic policy. And its services-oriented nature could act as buffer against tariff headwinds.
“Financials are poised to benefit from a reduction in financial crisis-era rules and a defanging of Basel III, which could ease compliance costs and boost lending, IPOs and M&A,” noted J.P. Morgan Asset Management (JPAM).
Industrials, which account for 12.40% of the OUSA roster, are another value segment, and one that’s outpacing the broader market. Some of that outperformance is attributable to the president’s commitment to keep defense spending elevated while some of the sector’s 2025 sturdiness may be assigned to expectations that efforts to bring manufacturing jobs to the U.S. will prove successful.
“The intersection of reindustrialization and limited immigration gives rise to opportunities in industries like factory automation, for instance,” added JPAM. “The combination of reindustrialization and tariffs could give domestic manufacturers of materials used to make cement and concrete, for example, a competitive edge.”
VettaFi LLC (“VettaFi”) is the index administrator and calculation agent for OUSA, for which it receives a fee. However, OUSA is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of OUSA.
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