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ETFs In Focus: JPMorgan's Underrated Dividend ETF, Betting On India, Investing Tactically In Junk Bonds

Published Fri, 23 Nov 2018 04:43:49 -0500 on Seeking Alpha

Note: The "ETFs in Focus" report gets delivered to ETF Focus subscribers weekly and includes analysis on a number of ETFs that should be on your radar over the coming weeks. Below is a sample of that report. This was first sent to ETF Focus subscribers on November 9. All data is current as of that date.
Let's take a look ahead at the ETFs to watch over the next few weeks!
The Equity ETF Idea I mention dividend ETFs quite a bit here because 1) I believe they deserve a spot in just about every portfolio to some degree and 2) there are a lot of really good options in this space that are worth a mention. A theme that's really been picking up momentum in 2018 is factor ETFs, specifically multi-factor ETFs. One fund that I really like and I think is a bit under the radar is a product that combines the best of three different factors into one.
The O'Shares FTSE US Quality Dividend ETF (OUSA) targets companies based on dividend yield, quality and low volatility. The quality factor is based on measures of profitability and leverage, the low volatility factor is determined using the standard deviation of weekly returns and the yield factor looks at the trailing 12-month dividend. Without getting too far into the weeds with the methodology, companies are scored on each of the three factors with the highest combined scores receiving the highest weights in the portfolio.
The focus on these factors predictably gives the portfolio a tilt towards large, mature,... Read more