Is ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) a Strong ETF Right Now?

Core Insights - The ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) debuted on December 30, 2016, and offers broad exposure to the Style Box - Small Cap Blend category [1] - OUSM is designed to match the performance of the FTSE Russell US Qual / Vol / Yield Factor 3% Capped Index before fees and expenses [5] - The fund has accumulated over $940.53 million in assets, positioning it as an average-sized ETF in its category [5] Fund Characteristics - OUSM has an annual operating expense ratio of 0.48%, which is competitive within its peer group [7] - The ETF's 12-month trailing dividend yield stands at 1.30% [7] - The fund's top sector allocation is in Industrials, comprising about 22% of the portfolio, followed by Financials and Consumer Discretionary [8] Holdings and Performance - Td Synnex Corp. (SNX) is the largest holding at approximately 2.12% of total assets, with the top 10 holdings accounting for about 20.69% of total assets [9] - As of October 29, 2025, OUSM has returned roughly 2.36% and is up approximately 0.28% year-to-date [11] - The ETF has a beta of 0.96 and a standard deviation of 15.65% over the trailing three-year period, indicating effective diversification of company-specific risk with about 113 holdings [11] Alternatives - Other ETFs in the small-cap space include iShares Russell 2000 ETF (IWM) and iShares Core S&P Small-Cap ETF (IJR), which have significantly larger asset bases of $70.2 billion and $86.9 billion, respectively [13] - IWM has a lower expense ratio of 0.19%, while IJR has an even lower expense ratio of 0.06%, making them potentially more attractive options for cost-conscious investors [13]