O’Shares ETF Investments has expanded its suite of quality ETFs with the launch of the O’Shares FTSE Russell International Quality Dividend ETF (NYSE Arca: ONTL), an international large-cap ETF focused on higher quality, dividend-paying companies with low volatility.

Kevin O’Leary, Chairman of O’Shares ETF Investments.

The underlying FTSE Developed ex US Qual/Vol/Yield Factor 5% Capped Index tracks 460 large cap stocks listed on developed markets outside the US. Its methodology evaluates and weights constituents based on their exposure to three factors: quality (stocks benefit from having higher return-on-assets, higher asset turnover, lower accruals, and lower leverage), dividends (stocks benefit from higher 12-month trailing dividend yields, and volatility (stocks benefit from lower weekly price volatility over the past five years). The maximum allowable weight for any constituent is capped at 5% as of the index’s quarterly rebalancing schedule.

The index has a dividend yield of 3.5%, highlighting the potential for ONTL to serve income-seeking investors. It has a five year annualized price volatility of 12.3%, slightly below the 12.9% recorded by its parent index, the FTSE Developed Ex US Index. The return on the index is 6.8% per annum over the past five years. (Data as of 31 March 2017).

The ETF’s largest country exposures are to the UK (15.8%), Switzerland (14.5%), Japan (12.3%), Australia (9.9%) and Canada (9.8%). The largest sector exposures are to consumer staples (18.9%), health care (17.6%), industrials (11.9%), consumer discretionary (8.5%) and financials (8.0%). The largest single holding is Nestle (4.7%) while the top ten holdings account for 22.1% of the portfolio.

Kevin O’Leary, Chairman of O’Shares ETF Investments, commented, “As an investor, I want to reduce risk. I want a diversified equity portfolio of the highest quality companies in the world. To achieve true diversification, my portfolio needs to be diversified by sector, geography, and currency. ONTL helps me accomplish this objective.”

Connor O’Brien, CEO of O’Shares ETF, added, “Conservative investors can benefit from the global diversification of an international ETF, potentially reducing the overall risk of their equity portfolios. In our view, ONTL provides conservative, long term investors with a vehicle to invest in a diversified portfolio of the highest quality companies outside of the US.”

The ETF has a total expense ratio (TER) of 0.48%.