New ETF Takes A Smart Look At Small Cap Dividend Stocks Read more: http://www.nasdaq.com/article/new-etf-takes-a-smart-look-at-small-cap-dividend-stocks-cm763639#ixzz4c9JHVrq7

Small cap stocks are traditionally known as centers of growth in the global capital markets. These companies often demonstrate greater risk due to their diminished market footprint. However, they also offer compelling performance and diversification dynamics for investors with a higher risk tolerance. Most exchange-traded funds that track this segment are focused on broad swaths of the small cap category. They typically own hundreds, if not thousands, of individual stocks with market capitalizations of less than $2-$3 billion.

There is also a segment of the small cap market with compelling benefits for more conservative income investors as well. This is the target demographic for the newly released O’Shares FTSE Russell Small Cap Quality DividendETF (OUSM). O’Shares is known for its smart beta dividend portfolios and outspoken Chairman, Kevin O’Leary, of Shark Tank fame. The index strategy behind OUSM is based on enhanced criteria that screens for three key factors: high quality, low volatility, and high dividend payout rates. The end result is a basket of more than 300 publicly traded stocks plucked from the thousands in the small cap universe with the highest overall scores in those three categories. The stocks with the highest scores are given the greatest weightings within the portfolio as well.

Source: NASDAQ

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