(OUSM) O’Shares U.S. Small-Cap - Overview

O Shares’ U.S. Small-Cap Quality Dividend ETF (BATS: OUSM) aims to track an index that selects U.S. small-cap companies that pay dividends and satisfy thresholds for market-cap size, liquidity, quality (e.g., high return on equity), low volatility, and dividend yield. Under normal market conditions the fund is required to hold at least 80 % of its assets in the index constituents, ensuring tight alignment with the index’s performance.

Key quantitative touch-points (as of the most recent public data) include a weighted average market-cap of roughly $1.2 billion, a dividend yield near 3.2 % (above the small-cap average of ~2 %), and a median five-year earnings-growth rate of about 9 %, indicating that the portfolio leans toward financially robust firms. The fund’s sector tilt is typically toward consumer discretionary and industrials, which historically benefit from a resilient domestic economy and modest interest-rate environments that keep borrowing costs low for smaller firms.

Given the current macro backdrop-moderate GDP growth, a flattening yield curve, and ongoing labor-market tightness-small-cap dividend payers could face upside from both earnings momentum and dividend sustainability, but they remain vulnerable to a sudden rise in rates or a contraction in consumer spending. If future data show a widening spread between small-cap yields and Treasury rates, the relative attractiveness of OUSM may increase; conversely, a sharp earnings slowdown would erode its quality premium.

For a deeper, data-driven look at how OUSM’s risk-adjusted returns compare to peers, you might explore the ValueRay platform’s analytical dashboards.