OUSM ETF

What types of investment opportunities are likely to do well in 2025? The stock market continues to be an attractive option, especially after the S&P 500 had a strong performance in 2024.

The O'Shares U.S. Small Cap Quality Dividend ETF includes 110 small-cap stocks that offer dividends, quality, and low volatility. It is diversified across various sectors, particularly in financials, industrials, and consumer discretionary. Since June 2020, it has performed better than the Russell 2000 and has lower risk levels.

The small-cap ETF market looks very promising as we approach the new year, especially with expected rate cuts that could benefit small companies by the end of 2024. Since smaller businesses often rely on loans for growth, lower borrowing costs could significantly improve their future prospects.

During VettaFi's 2025 Market Outlook symposium this week, Paul Baiocchi, the Chief ETF Strategist at SS&C ALPS Advisors, participated in a discussion about dividend investing for the upcoming year. He was joined by Kevin O'Leary, the Chairman of O'Shares, and Cinthia Murphy, an Investment Strategist at VettaFi.

During VettaFi's 2025 Market Outlook symposium this week, Paul Baiocchi, the Chief ETF Strategist at SS&C ALPS Advisors, participated in a discussion about dividend investing for the upcoming year. He was joined by Kevin O'Leary, the Chairman of O'Shares, and Cinthia Murphy, an Investment Strategist at VettaFi. Together, they shared insights on the topic.

On Tuesday, VettaFi's 2025 Market Outlook Symposium wrapped up with a discussion about dividend investing and its relevance in 2025. This segment, led by VettaFi Investment Strategist Cinthia Murphy, was called “Why Consider Dividend Strategies Given the Macroeconomy?”

For many years, smaller stocks and value stocks were very effective together. While they haven't performed poorly, recently, large growth stocks have taken the lead in the market, causing small-cap and value stocks to lose popularity.

As small-cap stocks are expected to gain momentum in 2025 due to potential interest rate cuts, it might be a good idea to consider investing in a small-cap ETF. One option to keep an eye on is the ALPS O'Shares US Small-Cap Quality Dividend ETF (OUSM).

After presidential elections, it's common to see a lot of discussion about which asset classes and sectors will do well or poorly with the new Trump administration. Small-cap stocks and their related ETFs are frequently highlighted as likely to gain from the "Trump trade."