At a glance
OUSM charges 0.48% a year, below the 0.53% average of the 6 funds most like it (the 4th cheapest of 7). It has $843.1M in assets, the 2nd largest of that group; it paid 1.99% of its price in distributions over the past 12 months, monthly. Over the past year it returned +10.3% with distributions reinvested (S&P 500: +11.5%), 5th of those 7 funds; over three years it returned +15.1% a year. At its worst it fell 19.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months after the low. Its ten largest positions make up 21.8% of the fund, out of 108 in all.
The short version
ALPS | O’Shares U.S. Small-Cap Quality Dividend ETF (OUSM) is an index fund. It holds about 110 smaller U.S. dividend-paying companies picked from the S-Network US Equity Mid/Small-Cap 2500 Index. Its index gives the most weight to profitability, low debt and steady share prices, not to high yield. It charges 0.48% a year, a little below the 0.53% average of similar funds, and it pays dividends monthly.
Price history
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OUSM +10.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| OUSM official prospectus, to Dec 31, 2025 | — | +2.16% | — | +9.02% | — | +8.57% |
| O’Shares U.S. Small-Cap Quality Dividend Index index, same period | — | +2.65% | — | +9.55% | — | +9.11% |
| Morningstar US Small-Cap Broad Value Extended Index index, same period | — | +10.48% | — | +10.32% | — | +7.57% |
| Index42 index, same period | — | +17.51% | — | +13.47% | — | +14.77% |
| OUSM price data to Oct 27, 2026 | +11.7% | +10.3% | +15.1% | +8.2% | — | +12.6% |
- Over the year to Oct 27, 2026, OUSM returned +10.3%, 5th of 7 among similar funds.
- Its 5-year annualized return was +8.2%.
- Its worst full calendar year was 2022 (-7.9%); its best was 2021 (+21.4%).
- The deepest fall in its price history was 19.4% (Nov 25, 2024 to Apr 8, 2025), recovered by Feb 4, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.7% | — |
| 2025 | +2.2% | +2.16% |
| 2024 | +13.5% | +13.39% |
| 2023 | +18.8% | +18.79% |
| 2022 | -7.9% | -7.89% |
| 2021 | +21.4% | +21.56% |
| 2020 | — | +7.59% |
| 2019 | — | +27.62% |
| 2018 | — | -10.28% |
| 2017 | — | +10.68% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 17.1% over that stretch · deepest drop along the way 19%, back to its old high 4.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6700 | |
| 2025 | $0.9100 | +26.4% |
| 2024 | $0.7200 | +14.3% |
| 2023 | $0.6300 | -6.0% |
| 2022 | $0.6700 | +15.5% |
| 2021 | $0.5800 |
What's inside
As of Aug 31, 2026, the fund held 108 securities; the ten largest made up 21.76% of assets.
| Holding | Weight | |
|---|---|---|
| Sei Investments Co | 2.39% | |
| Chemed Corp | 2.34% | |
| Texas Roadhouse Inc | 2.22% | |
| Mgic Investment Corp | 2.20% | |
| Essent Group Ltd | 2.19% | |
| Royalty Pharma Plc | 2.11% | |
| National Healthcare Corp | 2.10% | |
| Lincoln Electric Holdings Inc | 2.07% | |
| Allison Transmission Holdings Inc | 2.07% | |
| H&r Block Inc | 2.06% | |
| Donaldson Co Inc | 2.02% | |
| Radian Group Inc | 2.00% | |
| Encompass Health Corp | 1.97% | |
| Primerica Inc | 1.96% | |
| Itt Inc | 1.95% |
By country
United States 92.77%Bermuda 2.19%United Kingdom 2.11%Guernsey 1.54%Switzerland 1.11%By asset type
Stocks 99.79%What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $82.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.97%, +2.36%, +0.69%.
How it works
OUSM aims to match the O’Shares U.S. Small-Cap Quality Dividend Index, before fees. Index provider O’Shares Investment Advisers picks from a parent index, the S-Network US Equity Mid/Small-Cap 2500 Index, screening for free float (shares available on the open market) and trading volume. The rules score companies on quality (strong profits and balance sheets), low volatility (smaller price swings), dividend yield, and dividend quality (income available to pay dividends, plus dividend growth). As of December 31, 2025, the index held 110 stocks with market values from $412 million to $22.34 billion, leaning heavily on financials and industrials.
Each stock starts at its size-based weight in the parent index; the scores then raise or lower it, with quality and low volatility counting most. Sector limits rein in sector tilts. The index resets weights quarterly, capping each stock at 2%, and rebuilds its list yearly. Between resets, weights can drift above 2%: SEI Investments was 2.39% of the fund as of August 31, 2026, ahead of Chemed and Texas Roadhouse.
It invests at least 80% of assets in index stocks and may own a representative sample (a subset meant to mimic the whole), which can widen the gap with the index. Because it follows rules, it may hold a struggling company until the index drops it.
What it really costs
- OUSM charges 0.48% a year, versus an average of 0.53% for the similar funds below (4th of 7, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $49 in the first year and $603 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| OUSM | $49 | $154 | $269 | $603 |
In a retirement portfolio
It adds smaller U.S. companies, screened for profitability, low debt and steadier prices, to a portfolio built mostly on large-cap stocks.
OUSM could add small-company exposure to a large-cap portfolio, with a tilt toward profitable, steadier firms. It still falls hard in sell-offs. It lost 28.24% in the first quarter of 2020. It fell 19% from January to September 2022 and had recovered by February 2023. Its deepest drop since June 2020 was 19.4%, from November 2024 to April 2025, and it took about 10 months to recover. Its worst calendar year was 2018, at -10.28%. It launched in 2016, so it has no 2008 record. A retiree drawing income may need cash or bonds elsewhere to avoid selling after drops like these. The yield was 1.99% as of October 27, 2026, paid monthly. The fund costs 0.48% a year, or $49 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who own mostly large-cap stocks and want smaller U.S. companies screened for profitability, low debt and steadier prices.
- Income seekers who prefer monthly payments and screens for dividend safety over a high payout; the trailing yield was 1.99% as of October 27, 2026.
- Cost-conscious investors comparing factor funds: OUSM's 0.48% fee is below the 0.53% peer average and well under OSCV's 0.80%.
Look elsewhere if
- Investors looking for the lowest-cost small-cap dividend fund: CSB charges 0.35% and DGRS charges 0.38%.
- Investors who want energy, materials or real estate stocks, which the index excludes, or broad small-cap exposure without a heavy tilt to financials and industrials.
- Anyone uneasy with sharp drops: it fell 28.24% in early 2020 and returned only 2.16% in 2025, versus 10.48% for a small-cap value benchmark.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| OUSM this fund | — | 0.48% | $843.1M | +10.3% | +15.1% |
| FSCS First Trust SMID Capital Strength ETF | 23% | 0.6% | $58.9M | +3.7% | — |
| SDVY First Trust SMID Cap Rising Dividend Achiev… | 22% | 0.59% | $11.35B | +12.2% | +18.5% |
| OSCV Opus Small Cap Value ETF | 18% | 0.8% | $706.0M | +8.6% | +13.4% |
| CSB VictoryShares US Small Cap High Dividend Vo… | 17% | 0.35% | $259.2M | +14.3% | +15.8% |
| SIXL ETC 6 Meridian Low Beta Equity ETF | 11% | 0.47% | $204.2M | +11.0% | +12.1% |
| DGRS WisdomTree US Smallcap Quality Dividend Gro… | 9% | 0.38% | $400.1M | +17.2% | +17.3% |
Questions investors ask
Does OUSM pay monthly dividends?
Yes. OUSM pays dividends monthly. Over the 12 months to October 27, 2026, it paid $0.96 per share, a trailing yield of 1.99%. Payments vary from month to month because they depend on the dividends its 100-plus companies pay. The index's dividend quality screen tries to avoid companies likely to cut their dividends, but it can't rule out cuts. That yield is modest. The fund is built around quality and low volatility more than high income.
What is OUSM's expense ratio?
OUSM's expense ratio is 0.48% a year, according to its prospectus filed March 30, 2026. All of it is the management fee, with no fee waiver. Under the SEC's standard example ($10,000 invested, 5% yearly return), total costs would be about $49 after one year, $154 after three, $269 after five and $603 after ten. The average for similar funds is 0.53%, but CSB (0.35%) and DGRS (0.38%) cost less.
OUSM vs SDVY: what's the difference?
Both hold smaller U.S. dividend-paying companies, but they share only about 22% of their holdings. SDVY, the First Trust SMID Cap Rising Dividend Achievers ETF, is much larger: $11.35 billion in net assets as of June 30, 2026, versus OUSM's $843 million as of August 31, 2026. OUSM costs less, at 0.48% versus 0.59%. SDVY returned more as of October 27, 2026: 12.2% versus 10.3% over one year, and 18.5% versus 15.1% a year over three years. OUSM's index puts extra weight on low volatility.
What stocks are in OUSM?
As of August 31, 2026, OUSM held 108 companies, and its 10 largest made up 21.76% of assets, so no single stock dominates. The biggest were SEI Investments (2.39%), Chemed (2.34%), Texas Roadhouse (2.22%), MGIC Investment (2.20%), Essent Group (2.19%), Royalty Pharma (2.11%) and National HealthCare (2.10%). About 93% of assets were in U.S.-based companies. The rest were in companies based in Bermuda, the United Kingdom, Guernsey, Switzerland and the Cayman Islands. As of December 31, 2025, the index was concentrated in financials and industrials.
How has OUSM performed?
OUSM's results have been mixed. As of December 31, 2025, it returned 2.16% over one year, 9.02% a year over five years and 8.57% a year since its 2016 launch. Over five years it trailed its own index (9.55%) and the Morningstar US Small-Cap Broad Value Extended Index (10.32%). Based on price data, it returned 11.7% year to date and 10.3% over one year as of October 27, 2026. Its calendar-year returns ranged from a 10.28% loss in 2018 to a 27.62% gain in 2019.