ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. A New Shark on Wall Street: O’Leary Debuts Dividend ETF
News
Share

A New Shark on Wall Street: O'Leary Debuts Dividend ETF

Daniela Pylypczak-WasylyszynJul 14, 2015
2015-07-14

This morning, Shark Tank host Kevin O’Leary said “I’m in”—making his debut in the ETF industry.

Wall Street Welcomes O'Shares' OUSA

Kevin O’Leary, together with Connor O’Brien, launched his first ETF under the O’Shares Investments brand name—a division of O’Leary Funds Management LP.

The FTSE US Quality Dividend ETF (OUSA B+) began trading this morning, tracking the FTSE US Qual / Vol / Yield Factor 5% Capped Index. The index is designed to measure the performance of U.S.-listed large- and mid-cap dividend-paying companies that meet certain requirements, including:

  • Market capitalization
  • Liquidity
  • High quality
  • Low volatility
  • Dividend Yield

More specifically, O’Leary’s criteria for this fund includes a total yield close to 3%, and a portfolio featuring 20% less volatility than the broader market with stocks that all have strong balance sheets. The high-quality and low-volatility screens are designed to mitigate exposure to what dividend investors call a value trap – which occurs when a stock’s yield increases significantly due to a large price decline.


Content continues below advertisement

Under the Hood: OUSA

Sector breakdown for OUSA

OUSA’s resulting portfolio consists of 142 individual securities that have a weighted average market cap of about $152 billion. The average dividend yield is 3.2%. The fund’s expense ratio is 0.48%.

The holdings are diversified across 10 sectors, with consumer goods equities accounting for the largest portion of assets (approximately 17.5%). Health care, technology, industrials, and oil & gas sectors each receive allocations of more than 10% of total assets. Diving a bit deeper, OUSA allocates more than 7% to each of the following sub-sectors: pharmaceuticals & biotechnology (15%), oil & gas producers (10%), technology hardware & equipment (10%), and fixed line telecommunications (7.5%).

As of 7/14/2015, the fund’s top 10 holdings are as follows:

TickerNameWeight
JNJJohnson & Johnson5.03%
XOMExxon Mobil Corp.5.03%
AAPLApple Inc.5.01%
TAT&T3.79%
MSFTMicrosoft Corp.3.75%
VZVerizon Comm.3.72%
PFEPfizer3.23%
PGProctor & Gamble3.08%
PMPhilip Morris Intl.2.94%
CVXChevron2.73%

O'Leary Excited for O'Shares Pipeline

Though O’Shares only debuted one ETF today, O’Leary plans to launch four more funds in the coming 90 days, each of which will employ the same high-quality dividend strategy to markets outside of the U.S. According to the SEC filing, the funds in O’Shares pipeline include:

  • O’Shares FTSE Europe Quality Dividend ETF (OEUR)
  • O’Shares FTSE Europe Quality Dividend Hedged ETF (OEUH)
  • O’Shares FTSE Asia Pacific Quality Dividend ETF (OASI)
  • O’Shares FTSE Asia Pacific Quality Dividend Hedged ETF (OAPH)

Commenting on the investment objective behind these funds, O’Leary told CNBC, “This is what I am putting my own money into. The hope is that this is where I put my money for the equity portion of my trust and hold it for the rest of my life.”

Additionally, O’Leary stated: “To make the cut for me, an ETF has to be created from stocks that have quality, low volatility, and dividend yield. There are thousands of ETFs on the market but I couldn’t find one that gave me all of these metrics together so I created my own ETFs, called O’Shares. My first is OUSA and because I wanted it to be liquid and available to investors globally I chose to list it on NYSE Arca, the premier exchange for listing ETFs.”

Follow me on Twitter @DPylypczak.

Disclosure: No positions at time of writing.

» Popular Pages

  • Tickers
  • Articles

Jun 02

A Cash Alternatives ETF With a Distribution Yield Over 6%

Jun 02

Treasury Yields Snapshot: June 2

Jun 02

Main Management Market Note: June 2, 2023

Jun 02

China’s EV Market Recovers, Keep an Eye on KARS

Jun 02

A Debt Limit Deal Is Made, Target Treasuries of Any Duration

Jun 02

This Week in ETFs: Only 2 Launches, Many Closures

Jun 02

As Summer Nears, Eye Travel Stocks in JRNY

Jun 02

NYSE’s ETF Leaders: Northern Trust’s Michael Natale

Jun 02

Seize Market Gains & Optimize Dividends With KVLE

Jun 02

VettaFi Voices: Active or Passive for ESG ETFs?

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

JEPI

JPMorgan Equity Premium...

VTI

Vanguard Total Stock Market...

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

TLT

iShares 20+ Year Treasury...

BND

Vanguard Total Bond Market...

XLP

Consumer Staples Select...

BOTZ

Global X Robotics &...


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X