OUSA: ALPS | O'SHARES U.S. QUALITY DIVIDEND ETF SHARES
What this ETF is trying to do
The ALPS | O'SHARES U.S. QUALITY DIVIDEND ETF SHARES (OUSA) is an exchange-traded fund designed to invest in U.S. companies that are often associated with quality dividends. This ETF holds a variety of stocks, including large companies like Microsoft, Alphabet, and Apple. Because it focuses on these types of companies, it aims to provide a mix of share price movement and regular cash payments to investors.
What the numbers show
When looking at OUSA, it is important to understand the difference between "price return" and "total return." The price return only tracks how much the share price itself has changed. The total return includes both the price changes and the extra money earned from distributions (dividends).
Based on the data provided:
• Year-to-Date (YTD): The price return is approximately 5.49%, while the total return is approximately 6.64%.
• One-Year: The price return was approximately 8.27%, and the total return was approximately 9.83%.
• Three-Year: The price return was approximately 44.21%, and the total return was approximately 51.02%.
• Five-Year: The total return over five years was approximately 56.33%.
An estimated price from roughly one year ago was $56.22, compared to the current price of $60.87.
Income and distribution explanation
OUSA provides regular cash payments to shareholders. The distribution yield is approximately 1.37%. This number represents the cash distributions relative to the current ETF price. The fund usually pays out monthly, with 12 payments recorded over the last year. These payments typically occur on Thursdays.
It is important to remember that a distribution yield tells you about the cash paid out, but it is not the same as your total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, regarding price erosion (the decline in the market price of the shares), the data shows a healthy trend. The erosion-risk score is 100, which is labeled as "No price erosion detected," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in the portfolio (note that this is a partial list):
• Microsoft Corp (5.27%)
• Alphabet Inc Class A (5.23%)
• Apple Inc (5.15%)
• Johnson & Johnson (5.02%)
• Visa Inc Class A (4.95%)
• Mastercard Inc Class A (4.60%)
• The Home Depot Inc (3.49%)
• Cisco Systems Inc (3.13%)
• TJX Companies Inc (3.04%)
• Meta Platforms Inc Class A (2.56%)
Holdings can change over time.
Pros
• The ETF has shown positive price returns and total returns over the one-year, three-year, and five-year periods.
• It provides regular monthly distributions.
• The data shows no detected price erosion.
Cons
• The distribution yield is relatively low at approximately 1.37%.
• As with all stock-based ETFs, the value of the shares can change based on market movements.
Beginner takeaway
OUSA is an ETF that focuses on U.S. quality dividend stocks. For investors, the main takeaway is that this fund has historically provided both share-price growth and monthly cash distributions. When researching, always look at the total return to see the full picture of how much value was created, including the dividends paid out.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MICROSOFT CORP | MSFT | 5.27% |
| 2 | ALPHABET INC CLASS A | GOOGL | 5.23% |
| 3 | APPLE INC | AAPL | 5.15% |
| 4 | JOHNSON & JOHNSON | JNJ | 5.02% |
| 5 | VISA INC CLASS A | V | 4.95% |
| 6 | MASTERCARD INC CLASS A | MA | 4.60% |
| 7 | THE HOME DEPOT INC | HD | 3.49% |
| 8 | CISCO SYSTEMS INC | CSCO | 3.13% |
| 9 | TJX COMPANIES INC | TJX | 3.04% |
| 10 | META PLATFORMS INC CLASS A | META | 2.56% |