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OUSM - ETF AI Analysis

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OUSM

OShares U.S. Small-Cap Quality Dividend ETF (OUSM)

Rating:72Outperform
Price Target:
OUSM, the OShares U.S. Small-Cap Quality Dividend ETF, earns a solid overall rating driven by several financially strong, well-positioned holdings like Royalty Pharma and Lincoln Electric, which show robust profitability, positive earnings calls, and supportive technical trends. The fund’s quality tilt is reinforced by names such as SEI Investments and MGIC Investment, though some holdings like Chemed and Radian Group face bearish technical signals, operational challenges, or cash flow issues that slightly weigh on the rating. A key risk factor is the ETF’s focus on U.S. small-cap dividend payers, which can be more sensitive to market conditions and company-specific setbacks than larger, more diversified firms.
Positive Factors
Strong Overall Performance
The ETF has shown solid gains so far this year and in recent months, indicating positive momentum in its strategy.
Quality Top Holdings
Several of the largest positions, including healthcare and financial names, have delivered strong year-to-date results that support the fund’s returns.
Broad Sector Diversification
Holdings spread across industrials, financials, consumer cyclical, technology, and other sectors help reduce the impact of weakness in any single industry.
Negative Factors
Mixed Performance Among Top Stocks
A few key holdings, such as Western Union and MGIC Investment, have shown weak or negative performance this year, which can drag on the fund.
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, meaning more of the returns go toward fees instead of staying with investors.
Heavy U.S. Exposure
With almost all assets invested in U.S. companies, the ETF offers little geographic diversification and is highly sensitive to the U.S. market.

OUSM vs. SPDR S&P 500 ETF (SPY)

OUSM Summary

OUSM is an ETF that follows the O'Shares US Small-Cap Quality Dividend Index, focusing on smaller U.S. companies that pay regular dividends. It spreads your money across many sectors, including industrials, financials, and consumer companies, and holds well-known names like Texas Roadhouse and Western Union. Investors might consider OUSM for a mix of growth potential from small-cap stocks plus steady dividend income, which can help diversify a portfolio. However, small-cap stocks can be more volatile than larger companies, so the value of this ETF can go up and down sharply with the market.
How much will it cost me?The OShares U.S. Small-Cap Quality Dividend ETF (OUSM) has an expense ratio of 0.48%, which means you’ll pay $4.80 per year for every $1,000 invested. This is slightly higher than average because it is actively managed to focus on high-quality small-cap stocks that provide consistent dividend income.
What would affect this ETF?OUSM could benefit from economic growth in the U.S., as small-cap companies often thrive during periods of expansion, and its focus on high-quality dividend-paying stocks may provide stability during market volatility. However, rising interest rates or economic slowdowns could negatively impact small-cap stocks, particularly in sectors like consumer cyclical and financials, which make up a significant portion of the ETF's holdings.

OUSM Top 10 Holdings

OUSM is leaning into U.S. small-cap financials and industrials, with names like SEI Investments, Essent Group, and MGIC Investment quietly pulling their weight as steady, rising contributors. Industrial players Lincoln Electric and Allison Transmission add more muscle, benefiting from solid demand and healthy cash flows. On the defensive side, Texas Roadhouse has been a bit choppy, and Chemed looks more mixed, occasionally tapping the brakes on performance. Overall, the fund is clearly U.S.-focused, with no single stock dominating but a tilt toward quality, dividend-paying small caps.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Chemed2.36%$19.60M$6.74B15.58%
68
Neutral
Skyworks Solutions2.33%$19.42M$13.29B18.65%
70
Outperform
SEI Investments Company2.33%$19.39M$12.83B23.62%
79
Outperform
MGIC Investment2.23%$18.58M$6.31B8.12%
78
Outperform
Essent Group2.23%$18.55M$6.13B6.85%
73
Outperform
National Healthcare2.20%$18.31M$3.52B95.22%
74
Outperform
Avnet2.16%$17.99M$8.18B86.40%
67
Neutral
Allison Transmission Holdings2.11%$17.57M$10.48B43.58%
71
Outperform
Texas Roadhouse2.08%$17.27M$11.90B8.72%
72
Outperform
Royalty Pharma2.04%$16.94M$33.70B61.19%
79
Outperform

OUSM Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
48.72
Negative
100DMA
47.52
Negative
200DMA
46.06
Positive
Market Momentum
MACD
-0.42
Positive
RSI
34.57
Neutral
STOCH
2.78
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For OUSM, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 48.71, equal to the 50-day MA of 48.72, and equal to the 200-day MA of 46.06, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 34.57 is Neutral, neither overbought nor oversold. The STOCH value of 2.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OUSM.

OUSM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$815.52M0.48%
72
Outperform
$831.02M0.49%
68
Neutral
$726.58M0.09%
62
Neutral
$711.65M0.42%
68
Neutral
$703.26M0.38%
67
Neutral
$684.97M0.40%
70
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OUSM
OShares U.S. Small-Cap Quality Dividend ETF
47.28
2.88
6.49%
SFLO
VictoryShares Small Cap Free Cash Flow ETF
BBSC
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
JHSC
John Hancock Multifactor Small Cap ETF
EES
WisdomTree U.S. SmallCap Fund
SMDV
ProShares Russell 2000 Dividend Growers ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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