The ALPS O’Shares U.S. Small-Cap Quality Dividend ETF (OUSM) was one of the most popular funds across ALPS’ lineup of ETFs in November, as measured by net inflows, trailing only the ALPS Equal Sector Weight ETF (EQL).
OUSM has surged in popularity as small-cap funds have outperformed large-caps in recent months. The fund is designed to provide cost-efficient access to a portfolio of small-cap, high-quality, low-volatility, dividend-paying companies in the U.S. The fund’s holdings are selected based on fundamental metrics including quality, low volatility, and dividend growth.
OUSM took in $10 million in November flows, ending the month with $178 million in assets under management. The fund has seen $25 million in year-to-date inflows through the end of November.
OUSM’s quality small-cap portfolio has returned 4.75% in the past month and 6.13% over three months as of December 7, according to ETF Database. The fund is down -6.58% year to date. The fund’s nonannualized returns over five years are 40.91%.
In comparison, small-cap category peer Schwab U.S. Small-Cap ETF (SCHA) has returned 1.35% and 1.29% in the past one-month and three-month periods, respectively. Year to date, the fund is down -18.46%, according to ETF Database.
The fund aims to provide strong performance with less risk than a market cap-weighted approach. Quality dividend growth strategies are designed to reduce risk and exposure to stress events by avoiding lower-quality stocks.
OUSM holds 118 securities and charges 48 basis points as of December 7.
The fund’s top 10 holdings include Houlihan Lokey Inc (HLI, 2.44%), Erie Indemnity Company (ERIE, 2.37%), Juniper Networks Inc (JNPR, 2.20%), Encompass Health Corporation (EHC, 2.18%), Donaldson Company Inc (DCI, 2.17%), SEI Investments Company (SEIC, 2.13%), Old Republic International Corporation (ORI, 2.13%), Interpublic Group of Companies, Inc (IPG, 2.10%), Snap-on Incorporated (SNA, 2.09%), and Lincoln Electric Holdings Inc (LECO, 2.08%), according to ETF Database.
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