Return on Assets (ROA). Key to finding Small-Cap Winners?

Small-Cap (Russell 2000) stocks in the top quartile by ROA returned 4.5% on average YTD as of 4/30/2023.

Stocks in the bottom quartile averaged -2.5% during the same period.

 

ROA is one of the key metrics included in the methodology of the O’Shares U.S. Small-Cap Quality Dividend Index (OUSMX).

 

Get the OUSMX Index overview.

Profitability = Stronger Performance?

Source: Bloomberg Finance L.P. Data as of 04/30/2023.
Highest Quartile: Contains the top 25% of companies in the Russell 2000 based on average return on assets. Lowest Quartile: Contains the bottom 25% of companies in the Russell 2000 based on average return on assets.

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