- Quality might be in the name, but low volatility is the real theme, and investors should be cautious if considering OUSA as a core holding.
- Despite a pandemic that has re-shaped global markets, fund managers felt it necessary to add just 6.26% worth of new holdings when it reconstituted in September.
- Unfortunately, the added stocks underperformed the deleted stocks by 4.87% since the reconstitution, putting into question the fund's stock-picking abilities.
- While OUSA's current sector allocations are reasonable, this article will demonstrate why low-volatility stocks are the last thing you should want once markets bottom out.
- I'm neutral only because of its high allocations to Consumer Staples and Health Care stocks, but am recommending investors avoid OUSA so they aren't caught in a bad market cycle.
For further details see:
Kevin O'Leary's OUSA: Why It Doesn't Belong In Your Portfolio