As the investment world braces for more uncertainty and market volatility, investors may consider smart-beta exchange traded fund strategies to limit drawdowns and potentially smooth out the ride.
On the upcoming webcast, Kevin O’Leary (Shark Tank); Performance of ETFs Focused on Quality Stocks , Brad Zucker, Senior Product Manager at FTSE Russell, Michael Venuto, Co-Founder and Chief Investment Officer of Toroso Investments, Kevin O’Leary, Chairman of O’Shares Investments, and Connor O’Brien, Chief Executive Officer and President of O’Shares Investments, will discuss market opportunities and quality stocks as a way to offset potential risks down the road.
For instance, investors can gain diversified exposure to global markets through a number of O’Shares smart-beta ETFs, including the O’Shares FTSE US Quality Dividend ETF (OUSA) , O’Shares FTSE Europe Quality Dividend ETF (OEUR) and O’Shares FTSE Asia Pacific Quality Dividend ETF (OASI) .
Trending on ETF Trends
The three ETFs follow a three core investment principles: income, diversification and capital appreciation. Component holdings have stable cashflow to pay dividends, are diversified across 10 sectors to limit volatility and invest in quality companies with strong financial performances that may have a higher chance of appreciating over time.
Specifically, OUSA tracks large- and mid-cap dividend-paying issuers in the U.S. Additionally, the underlying FTSE US Qual / Vol / Yield Factor 5% Capped Index may implement screens on market capitalization, liquidity, high quality, low volatility and dividend yields to weed out riskier components and focus on dividend payers with a history of low volatility. OUSA has a 2.59% 30-day SEC yield.
OEUR also includes the similar index screens and targets large- and mid-cap dividend payers from European countries. Top weights include United Kingdom 43.7%, Eurozone 29.6% and Switzerland 20.1%. OEUR has a 2.81% 30-day SEC yield.
Additionally, OASI follows large- and mid-cap dividend payers from Asian Pacific, including Australia 23.6%, Hong Kong 13.5%, Japan 43.7%, South Korea 8.3%, New Zealand 2.1% and Singapore 6.6%. OASI has a 3.06% 30-day SEC yield.
Financial advisors who are interested in learning more about quality, smart-beta strategies can register for the Tuesday, August 9 webcast here.