Aptus Capital Advisors has partnered up with Opus Capital Management to launch an actively managed exchange traded fund targeting high-quality, growth small-cap stocks with attractive valuations.
The recently launched Opus Small Cap Value Plus ETF (NYSEArca: OSCV) has a 0.79% expense ratio.
The new active ETF will be managed by Len Haussler, Opus Founder and Portfolio Manager, and Adam Eagleston, Opus Principal and Portfolio Manager.
Opus Small Cap Value Plus ETF will seek to generate capital appreciation through small-cap U.S. companies falling within the market capitalization range of the benchmark Russell 2000, according to a fund prospectus.
The ETF’s sub-advisor, Opus, “selects stocks across a variety of sectors and industries for the Fund by combining factor-based analysis with rigorous fundamental research to identify high-quality, growing companies that the sub-adviser believes are undervalued,” according to the fund.
‘OSCV’ Methodology
Specifically, the ETF’s higher quality screen will include companies with sound business models, higher returns on equity, strong balance sheets, and shareholder-friendly management.
The higher growth screen covers those that are well-positioned to grow sales, earnings, cash flows, and dividends.
Lastly, the lower valuations screen includes companies whose valuations reflect lower price-to-earnings and higher yields than their peers.
OSCV’s managers will dump a stock when the company is no longer believed to be high quality, when anticipated growth rate has significantly declined, when the stock is no longer considered undervalued, or when the company is no longer categorized as small-cap for more than one year.
OSCV includes a portfolio with a strategy where “seeking to mitigate risk in down markets has the potential to improve diversification for your entire portfolio,” according to Opus.
For more information on new fund products, visit our new ETFs category.