VIG - OUSA: High Quality Dividend ETF That Costs Too Much
2024-04-23 13:28:45 ET
Summary
- OUSA is a high-quality portfolio of dividend-paying stocks that are screened for quality and volatility. Its expense ratio is 0.48%, and the ETF has $715 million in assets under management.
- The assets managed are relatively low, and I expect the high expense ratio is the reason. It directly reduces shareholders' dividend yield, estimated at 1.71%, and detracts from total returns.
- High fees are sometimes justified for unique strategies difficult to implement, but there are several low-fee alternatives readers should first consider. VIG and DGRO are two choices.
- This article demonstrates how these ETFs are competitive on dividend yield, dividend growth, quality, diversification, and value, and why they're likely better long-term picks.