OUSA, which has $382.4 million in assets under management and a trailing 12-month dividend yield of 2.4%, allocates over 18% of its weight to consumer staples names. The technology and healthcare sectors combine for about 30% of the ETF’s weight. Conversely, the ETF is lightly allocated to sectors that have seen negative dividend action in recent years as the energy and materials sectors combine for less than 5% of the fund’s weight.
Dividend growers provide an aspect of quality and growth since these firms have a long track record of raising dividends. Companies that have consistently raised dividends also exhibit stable balance sheets and consistent earnings growth.
The low volatility factor “favors companies that exhibit a historically lower risk profile (as measured by the five-year weekly standard deviation of returns) on the belief that these companies will outperform their higher risk counterparts over time,” notes Seeking Alpha.
OUSA is up 6.1% year-to-date and 10% over the past year.
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