Value for a Trade, Quality for an Investment?
Quality dividends have beaten Value over 70% of the time. OUSA has outperformed Value in 16 of the past 22 quarters since inception, 7/14/2015, over 70% of the time.
Quality outperformed in the long-term: Quality has outperformed Value over the past 1, 3, 5 years and since inception.
Danger of the “dead-cat-bounce”. Value outperformed Quality dividends for consecutive quarters just once, in 2016, before underperforming for the next four. Since then, Value has not outperformed for consecutive quarters.
Defense when it matters most. During quarters when Value experienced negative returns greater than 5%, OUSA outperformed by an average of nearly 5%.
Performance Comparison: OUSA vs. Value
| 1Y | 3Y | 5Y | SI | |
| OUSA NAV | 6.9% | 9.0% | 11.6% | 10.8% |
| OUSA Market Value | 6.9% | 9.0% | 11.5% | 10.8% |
| Value | 2.8% | 6.0% | 9.7% | 7.9% |
Source: Bloomberg Finance L.P., data as of 12/31/2020. OUSA: O’Shares U.S. Large Cap Quality Dividend ETF. Value: Russell 1000 Value. Returns for periods longer than 1 year are annualized. S/I: Since Inception of OUSA: 7/14/2015. Dead-Cat-Bounce: A dead cat bounce is a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns beyond one year are annualized. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. For most recent month end performance visit oshares.com/ousa-us. Annual Fund expense ratio: 0.48%