Kevin O’Leary’s O’Shares ETF Investments announced recently that O’Shares FTSE U.S. Quality Dividend ETF (OUSA) surpassed $600 million in assets under management (AUM). OUSA returned 25.24% in 2019 and has avoided 30% of the S&P 500 downside since its inception.
“OUSA is an ETF with over 100 large cap quality dividend stocks; it has given me great performance and dividend income. I don’t want all the 500 biggest companies, just the higher quality companies because I want less risk. This is why I own OUSA,” said Kevin O’Leary, Chairman of O’Shares ETFs.
“The Quality focus of OUSA does more than provide strong performance potential. It may also offer investors a lower risk approach to building equity income. OUSA has avoided ~30% of the downside during market stress events since its inception,” said Connor O’Brien, CEO of O’Shares ETFs.
OUSA is the quality large cap strategy provided by O’Shares ETF Investments, a family of ETFs that includes OUSM, OGIG and OEUR. OUSA seeks to track the performance (before fees and expenses) of its target index, the FTSE USA Qual/Vol/Yield Factor 5% Capped Index (the “Target Index”).
OUSA’s target index is designed to reflect the performance of publicly-listed large capitalization and mid-capitalization dividend-paying issuers in the United States exhibiting high quality, low volatility and high dividend yields, as determined by the index provider. The quality and low volatility factors are designed to reduce exposure to high dividend equities that have experienced large price declines.
Other Dividend ETF Options
Other dividend ETF options include the Invesco Dow Jones Industrial Average Dividend ETF (NYSEArca: DJD). DJD seeks to track the investment results of the Dow Jones Industrial Average Yield Weighted. The underlying index is designed to provide exposure to dividend-paying equity securities of companies included in the Dow Jones Industrial Average™, which is a price-weighted index of 30 U.S. companies that meet certain size, listing and liquidity requirements.
When playing the dividend ETF game, it’s necessary to not just look at funds that offer the highest dividends, but also those that look to sustaining growth like the WisdomTree U.S. Quality Dividend Growth Fund (NasdaqGM: DGRW). DGRW seeks to track the price and yield performance of the WisdomTree U.S. Quality Dividend Growth Index. The index is a fundamentally weighted index that consists of dividend-paying U.S. common stocks with growth characteristics.
Another option is the ProShares S&P 500 Aristocrats ETF (CBOE: NOBL), should be an area of emphasis for income investors. NOBL tracks the S&P 500 Dividend Aristocrats Index, targets the cream of the crop, only selecting components that have increased their dividends for at least 25 consecutive years. Consequently, investors are left with a portfolio of high-quality, sustainable dividend payers.
For more market trends, visit ETF Trends.