The stock market may have started 2024 down, but that doesn’t mean investors have to. Indeed, while the broader market whimpers amid soft China data and still-lingering fear of a slowdown, some areas see major opportunities. Perhaps none is as accessible and intriguing as the attractive discount found in small-cap stocks. The right ETF investing in small caps could, then, make for a solid option for investors looking to start the year off right.
See more: The Case for Mid and Small-Cap Stocks Right Now
Smaller stocks are looking at some of the largest discounts relative to their larger peers since 2010. They’ve trailed some larger firms amid the post-GFC low interest rate regime that birthed some of those megacap tech firms. With U.S. stocks remaining expensive overall in a market shadowed by lingering inflation and a higher for longer rate regime, then, finding the right small caps could boost portfolios.
Quality Small Cap ETF OUSM
That’s where a strategy like the ALPS O’Shares US Small-Cap Quality Dividend ETF (OUSM) can play a role. OUSM tracks the O’Shares US Small-Cap Quality Dividend Index, which not only exposes it to dividends that could bounce back this year themselves, but also to smaller firms that meet a quality standard.
