O’Shares FTSE Russell Small Cap Quality Dividend ETF (OUSM) Celebrates 3-Year Anniversary and Strong Performance
January 21, 2020 – Boston, MA – O’Shares ETF Investments celebrated the 3-year anniversary of O’Shares FTSE Russell Small Cap Quality Dividend ETF (OUSM) on December 30, 2019. In 2019, OUSM returned 27.62%, outperforming the Russell 2000 which returned 25.49%. View the standardized performance for OUSM.
“OUSM is an ETF that owns 200+ small cap quality dividend stocks, companies with strong profits and great dividends. Why own 2,000 small caps, including the unprofitable ones? I just want the companies that are profitable money machines,” said Kevin O’Leary, Chairman, O’Shares ETFs.
“Small cap stocks have outperformed large cap stocks over the past 20 years by more than 100%1. We designed OUSM to invest in high quality small cap stocks by combining measures of profitability such as return on assets and leverage measured by operating cash flow to total debt. This has generated strong performance and less risk than the Russell 2000. Investors may still be under-allocated to small cap stocks partly because active funds run by some of the best managers have closed. It’s tax time again and many advisors are concerned about the significant tax allocations generated by actively managed small cap funds, a problem potentially solved by most ETFs, including OUSM,” said Connor O’Brien, CEO of O’Shares ETFs.
OUSM seeks to track the performance (before fees and expenses) of its target index, the FTSE USA Small Cap ex Real Estate 2Qual/Vol/Yield 3% Capped Factor Index (the “Target Index”). The Target Index is designed to reflect the performance of publicly-listed small-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, as may occur with some dividend investing strategies.
O’Shares ETF Investments
O’Shares Investments provides ETFs for long-term wealth management, with an emphasis on quality across our family of ETFs. The O’Shares ETFs are designed for investors with objectives ranging from wealth preservation and income to growth and capital appreciation. Each O’Shares ETF reflects our rules-based investment philosophy, including quality as an important characteristic. O’Shares ETFs are all managed according to rules-based indexes, and all are listed on the New York Stock Exchange.
1. Source: Bloomberg Finance L.P. Data as of 12/31/2019. U.S. Large Caps represented by the S&P 500 Index. U.S. Small Caps represented by the Russell 2000 Index. The total return for the Russell 2000 Index from 12/31/1999 – 12/31/2019 was 330.34% vs. 224.02% for the S&P 500 Index.
Before you invest in O’Shares ETF Investments Funds, please refer to the prospectus for important information about the investment objectives, risks, charges and expenses. To obtain a prospectus containing this and other important information, please view or download a prospectus. Read the prospectus carefully before you invest. There are risks involved with investing including the possible loss of principal.
Concentration in a particular industry or sector will subject the Funds to loss due to adverse occurrences that may affect that industry or sector. The Funds may use derivatives which may involve risks different from, or greater than, those associated with more traditional investments. A Fund's emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform the market. Also, a company may reduce or eliminate its dividend after the Fund's purchase of such a company's securities. Returns on investments in foreign securities could be more volatile than, or trail the returns on, investments in U.S. securities. Exposures to foreign securities entail special risks, including political, diplomatic, economic, foreign market and trading risks. In addition, a Fund's investments in securities denominated in other currencies could decline due to changes in local currency relative to the value of the U.S. dollar, which may affect the Fund's returns. See the prospectus for specific risks regarding the Funds.
The securities of small capitalization companies are often more volatile and less liquid than the stocks of larger companies and may be more affected than other types of securities during market downturns. Compared to larger companies, small capitalization companies may have a shorter history of operations, and may have limited product lines, markets or financial resources.
Companies involved with Internet technology and e-commerce are exposed to risks associated with rapid advances in technology, obsolescence of current products and services, the finite life of patents and the constant threat of global competition and substitutes.
Past performance does not guarantee future results. Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, consisting of 50,000 Shares. Brokerage commissions will reduce returns. The market price of Shares can be at, below, or above NAV. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded Shares at other times.
O’Shares ETF Investments Funds are distributed by Foreside Fund Services, LLC. Foreside Fund Services, LLC is not affiliated with O’Shares ETF Investments or any of its affiliates.