Learn about ETFs
What are ETFs?
ETFs or Exchange Traded Funds have been available in the U.S. since around 1993. While they are not a new product, there appears to be quite a bit of unfamiliarity with the structure and benefits of this type of investment product.
In plain English, an Exchange Traded Fund or “ETF” is an investment fund or investment product that allows an investor to purchase (or sell) a portfolio of assets (typically stocks or bonds) that mirror or simulate an index (basket of securities) in one consolidated product, similar to a stock. So if you were to purchase one share of an ETF, you may actually be buying a basket of 100 stocks.
To illustrate this further, see how ETFs compare versus a common stock and a mutual fund.
|Lower Investment Minimums|
|Lower Investment Thresholds|
|Daily/Intraday Price Transparancy|
|Can Buy on Margin|
|Can Use Various order types (Limits or Stop Orders)|
ETF Structural Benefits
– Transparency -you can view all underlying assets in the ETF (INDEX) Daily
– Efficiency – trades like a common stock on an exchange with intraday/real time pricing
– Diversification – shown to potentially reduce volatility by holding basket(s) of securities across the index
– Flexibility – trades like common stock and you can use various order types
– Tax Efficiency – potentially lessens and possibly avoids capital gains distributions
What is an Index?
O’Shares has partnered with FTSE/Russell, an industry leader in indexing, to create our first in a series of global ETFs. Read More
What is Smart Beta?
“Smart Beta” index strategies are designed to focus on priorities such as “quality stocks”, “more income”, “less risk”, compared to many generic index strategies that simply buy stocks according to size of company. Read More.
Why O’Shares ETFs?
Our belief at O’Shares is that when making an investment choice it should be very easy to understand where your hard earned income or investment capital is going, what are the benefits and what are any potential risks. Our core investment principles are centered around three (3) basic philosophies: income, wealth preservation and capital appreciation.
- Income: We believe you should be rewarded for investing your hard earned income so our family of ETFs are developed with a primary focus on dividend paying companies and dividends will be distributed monthly.
- Wealth Preservation: Everyone works hard to earn money, we want to try to ensure you keep it. Our family of ETFs includes assets that historically have shown reduced volatility over longer investment periods and we make sure we are diversified across multiple sectors and industry groups to avoid over- concentration.
- Capital Appreciation: We want your hard earned investment dollars to grow. Our ETFs are performance driven that seek to, over longer investment periods, outperform traditional benchmarks.
Is OUSA different than other U.S. dividend ETFs?
Yes. OUSA is focused not only on strong dividends, but also low volatility to avoid high risk stocks and quality stocks to avoid companies with high leverage and poor earnings quality. Learn More About OUSA