Smart Beta ETF ALPS OUSA: Performance and Insights Revealed

ALPS OUSA, a smart beta ETF, offers a strategic approach for investors, emphasizing large-cap value stocks. With a focus on unique stock selection, its performance is notable, impacting ETF market dynamics.

Date: 03-04-2025

AI Rating: 7

Performance Metrics: The ALPS Smart Beta ETF (OUSA), which specializes in large-cap value stocks, has reported a year-to-date return of approximately 9.69%. Investors may find this performance attractive, particularly given the current market volatility. The fact that it has amassed over $802.34 million in assets also indicates a level of investor confidence in this product.

Expense Ratio: The ETF's annual operating expenses stand at 0.48%, which is competitive relative to its peers in the large-cap value category. Lower expense ratios often correlate with better long-term performance, making OUSA an interesting option for cost-conscious investors.

Dividend Yield: The trailing dividend yield of 1.34% adds an attractive element for income-focused investors, hinting at potential cash flow generation amid market uncertainty.

Sector Exposure: With a focus on Financials, which account for 25.30% of the portfolio, alongside allocations to Information Technology and Healthcare, OUSA offers balanced sector exposure, mitigating risks associated with sector-specific downturns.

Risk Assessment: The ETF has a beta of 0.86, indicating that it is less volatile than the market. This medium risk profile can be appealing to investors seeking stability in a fluctuating market. Given that ETFs generally offer diversified holdings, the risk associated with single stock investment is significantly minimized.

In conclusion, the ALPS OUSA ETF represents a compelling option for investors looking to capitalize on a smart beta strategy while retaining a focus on value-oriented investments. Understanding its performance metrics, cost structure, and risk profile will be essential for making an informed investment decision.

Stocks: AAPL V HD