OUSM’s Top Decile Performance Continues in August
The ALPS | O’Shares U.S. Small-Cap Quality Dividend ETF (OUSM) outpaced broad-based indices last month as its high-quality companies persevered market volatility with generally positive earnings and guidance, continuing OUSM’s top decile performance in the small-cap category.
OUSM had several high-flyers across all sectors last month, improving relative performance while markets whipsawed. H&R Block Inc. (HRB, 0.66% weight*), a tax preparation company, surged nearly 19% in August after a solid finish to their fiscal year, reporting earnings above analyst estimates on the back of strong tax preparation revenue that allowed the company to raise its dividend and repurchase shares.
As projections for a soft-landing scenario become more likely for the U.S., while the rest of the world digests more pronounced economic slowing, we believe U.S. small-caps are likely to continue their outperformance against U.S. large-cap stocks due to their U.S. revenue bias, margin expansion and valuation disparities.
Source: https://www.alpsfunds.com/perspectives/etf-spotlights/ousms-top-decile-performance-continues-in-august-20230901
