ALPS O'Shares US Quality Div ETF retains its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in liquidity exposure and an overweight in quality exposure compared with category peers. Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And a high quality exposure is rooted in holding stocks with low financial leverage and strong returns on equity. The team managing this passive strategy earns a Below Average People Pillar rating. Even though the strategy's parent organization has some investor-friendly attributes like considerable personal investments from managers, a bench of limited-tenure portfolio managers holds it back. As a result, the firm obtains a Low Parent Pillar.

Analyst Rating

Apple

Microsoft

Comcast

Verizon

Visa

JPMorgan Chase & Co

Mastercard

Home Depot

UnitedHealth Group

Eli Lilly

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. ALPS O'Shares US Quality Div ETF earns an Above Average Process Pillar rating. 

The most important driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Strong risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 43%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

 This strategy skews toward larger, higher-growth companies than its average peer in the Large Value Morningstar Category. Examining additional factor exposure, this strategy consistently held some companies with relatively lower trading volume compared with Morningstar Category peers in the last few years. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. In the latest month, the strategy was also less exposed to the Liquidity factor compared with Morningstar Category peers. This strategy also has had a defensive tilt, with exposure to higher-quality stocks compared with peers in recent years. This means that the fund holds companies that are profitable, growing, and have solid balance sheets. Such holdings could cause it to trail peers during economic booms, but help it better endure busts. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. Additionally, this strategy has exhibited a tilt toward low-volatility stocks in these years, meaning companies with a lower historical standard deviation of returns over its peers. These low-risk stocks are typically at their best when markets are not. Low volatility exposure contributes to limited loss on the downside at the cost of a lag in bull markets. In recent months, the strategy also had less Volatility factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in consumer cyclical and technology relative to the category average by 8.7 and 8.2 percentage points, respectively. The sectors with low exposure compared to category peers are energy and utilities, underweight the average by 8.2 and 5.1 percentage points of assets, respectively. The portfolio is composed of 103 holdings and is quite concentrated. More concretely, 39.7% of the portfolio's assets are housed within the top 10 holdings, versus the category’s 28.9% average. And in closing, in terms of portfolio turnover, this fund trades less frequently than the category’s average, potentially limiting costs to investors.

Above Average

Process

ALPS’s team receives a Below Average People Pillar rating. The team benefits from the combined average three-year excess return of each manager, which shows that the funds they manage have surpassed an average manager. However, the rating is held back by the parent firm's five-year retention rate of 61%, which suggests it could do more to keep its portfolio managers. The parent firm's five-year success ratio of 51% also limits the team. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

Below Average

People

ALPS fails to meet industry-standard stewardship qualities, culminating in a Low Parent Pillar rating. Aside from the overall view, the firm's portfolio managers have worked to align their interests with investors' by taking a personal stake and investing alongside them. Almost 34% of the firm’s assets are covered by invested managers. With an average tenure of seven years among the longest-tenured managers at ALPS, the firm is on par with peers. Seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions. The firm charges fees on its open-end and exchange-traded funds that are on par with category peers. On average, fees on its funds are within the middle quintile, giving it neither an advantage nor disadvantage compared with the competition.

Parent

OShares U.S. Quality Dividend ETF

OUSA tracks an index that selects and weights large-cap US stocks based on four factors: high quality, low volatility, high dividend yield, and dividend quality.

If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the ALPS (OUSA), a passively managed exchange traded fund launched on 07/14/2015.

Should ALPS (OUSA) Be on Your Investing Radar?

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Launched on 07/14/2015, the ALPS (OUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.

Is ALPS (OUSA) a Strong ETF Right Now?

OUSA mixes quality, low-volatility, and dividend growth ingredients into one product with an overweening exposure to large caps. The OUSA portfolio features resilient dividend stories, with a downside being the necessity of tolerating the rich valuations these names typically command. OUSA's performance was mixed in the past, with an annualized return below IVV's.

OUSA: Quality Dividend Stocks But Miniature Yield, Small Growth Exposure

The ALPS O'Shares U.S. Quality Dividend ETF (OUSA) was launched on 07/14/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

Should ALPS O'Shares U.S. Quality Dividend ETF (OUSA) Be on Your Investing Radar?

Making its debut on 07/14/2015, smart beta exchange traded fund ALPS O'Shares U.S. Quality Dividend ETF (OUSA) provides investors broad exposure to the Style Box - Large Cap Value category of the market.

Is ALPS O'Shares U.S. Quality Dividend ETF (OUSA) a Strong ETF Right Now?

ALPS O'Shares Europe Quality Dividend ETF Shares

Dividends were hot to end last year and enter into 2023. While the year did start with a notable mini-rally, current income is still worth adding to a portfolio to mitigate volatility.

Diversify Dividends With Quality Europe, U.S. ETF Duo

O'Shares FTSE U.S. Quality Dividend ETF holds a 100-stock portfolio based on quality, volatility and dividends. It is well-diversified across several GICS sectors, but ignores four of them.

OUSA: An ETF Focused On Capital Preservation

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Advisors can capture yield in client portfolios by layering the ALPS Sector Dividend Dogs ETF (SDOG), a deep value strategy, and the ALPS O'Shares U.S. Quality Dividend ETF (OUSA), a quality strategy.

Layer Deep Value and Quality to Capture Yield

Advisors continuing the search to maximize yield in clients' portfolios is a key theme for 2023. Layering the ALPS Sector Dividend Dogs ETF (SDOG), a deep value strategy, and the ALPS O'Shares U.S. Quality Dividend ETF (OUSA), a quality strategy, in a portfolio can maximize yield.

Pair SDOG and OUSA to Maximize Yield

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In a livecast event this Friday, I'm going to be recapping the past year in ETFs and previewing what is likely ahead of us with one of my favorite people in the ETF industry that does not work for VettaFi, Cinthia Murphy.

Smart Beta Is Alive and Well

A reader asked for my thoughts on OUSA. OUSA is an index ETF investing in high-quality, low-volatility U.S. equities with above-average yields and strong dividend growth track records.

OUSA: Quality, Dividend Growth, And Low Volatility In One Index ETF

OUSA is a portfolio of 100 dividend-paying U.S. stocks purported to have superior profitability, dividend growth, revenue growth, balance sheet, and low-volatility features. However, the low starting yield of approximately 1.83% means OUSA as an income investment isn't a viable choice. Impacting this yield is an unreasonable 0.48% expense ratio.

OUSA: A High-Priced Dividend ETF That Fails To Stand Out

Advisors can capture yield in a portfolio by layering a deep value factor strategy and a quality factor strategy.

Capture Yield by Layering SDOG and OUSA

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Inflation rose by more than expected in September, ensuring the Federal Reserve continues its aggressive rate hikes as it aims to curb 40-year high inflation. With continued rising interest rates and hints of recessionary conditions in the global economy, ALPS O'Shares U.S. Quality Dividend ETF (OUSA) is a strong offering to consider.

Check Out OUSA to Mitigate Volatility and Increase Yield

OUSA is an ETF investing in large cap, high-quality dividend stocks. Technology and healthcare weigh 42% of asset value.

OUSA: Low-Yield, High-Quality Dividends

The ALPS O'Shares U.S. Quality Dividend ETF (OUSA) gained 0.17% last week, outperforming the S&P 500 and Russell 1000 Value Index, which ended the week in the red, as volatility increased within U.S. equities amid rising long-term interest rates.

OUSA's Defensive Quality Positioning Outperformed Major Indexes Last Week

Even as a risk-off sentiment emerged in July, interest in U.S. equity ETFs offering attractive dividends surged during the month.  The ALPS O'Shares U.S.

As Investors Look to U.S. Dividend ETFs, Check Out OUSA

OUSA is an investment vehicle offering exposure to 100 dividend-paying U.S. equities exhibiting remarkable quality characteristics. OUSA's valuation has deteriorated since my June 2021 coverage, now with most of the portfolio trading at a premium to the respective sector medians and historical averages.

OUSA: This Quality-Heavy Portfolio Has A Valuation Problem

O'Shares Global Internet Giants ETF

O'Shares US Small-Cap Quality Dividend ETF

SS&C ALPS Advisors, the asset management subsidiary of SS&C Technologies Holdings, has added the following O'Shares exchange traded funds to its ETF offerings: The ALPS O'Shares U.S. Quality Dividend ETF (OUSA) The ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) The ALPS O'Shares Global Internet Giants ETF (OGIG) The ALPS O'Shares Europe Quality Dividend ETF [...] The post ALPS Adds 4 O'Shares ETFs to Lineup appeared first on ETF Trends.

ALPS Adds 4 O'Shares ETFs to Lineup

Is Oshares U.S. Quality Dividend ETF (OUSA) a Strong ETF Right Now?

Should Oshares U.S. Quality Dividend ETF (OUSA) Be on Your Investing Radar?

Quality factor stocks could receive greater attention as the cost of capital ramps up.

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Four ETFs will be reorganized under the ALPS ETF Trust.

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SS&C Technologies today announced it has entered into an agreement to acquire O'Shares ETFs. As part of the deal, the four ETFs managed by O'Shares, which hold a combined $1.5 billion in assets, will be reorganized into newly created ETFs formed by SS&C ALPS Advisors, a wholly-owned subsidiary of SS&C Technologies with $18.2 billion under [.

News for OShares U.S. Quality Dividend ETF ETF (OUSA)