(OUSM) O’Shares U.S. Small-Cap - Ratings and Ratios

The O’Shares U.S. Small-Cap Quality Dividend ETF (OUSM) is designed to provide exposure to small-capitalization U.S. companies that meet specific quality, dividend, and volatility criteria. Under normal market conditions, the fund allocates at least 80% of its total assets to the constituents of its underlying index. This index is crafted to track the performance of publicly traded small-cap issuers that not only pay dividends but also exhibit high liquidity, stable earnings, and lower volatility compared to their peers. The index provider, OShares Investment Advisers, LLC, employs a rules-based methodology to screen and select companies that align with these criteria.

As of the latest data, the fund manages approximately $899.19 million in assets under management (AUM), reflecting its appeal to investors seeking targeted small-cap exposure with a focus on quality and income. The ETF is listed on the BATS exchange under the ticker symbol OUSM and falls under the Small Blend ETF category, blending elements of both value and growth investing.

Looking ahead, the future outlook for OUSM will likely hinge on the broader trends in small-cap equities and investor demand for dividend-paying stocks. As Aswath Damodaran might emphasize, the fund’s ability to deliver returns will depend on its ability to balance dividend yield with growth potential, while maintaining its quality and low-volatility screens. Small-cap stocks historically offer higher growth potential than larger counterparts, but they also come with higher risk. OUSM’s focus on quality and dividend stability could make it a resilient choice during market downturns, though its performance will still be closely tied to the overall health of the U.S. economy and small-cap sector dynamics.