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My Conversation With Kevin O'Leary's O'Shares ETF Team

I talked with O'Shares CEO Connor O'Brien about higher yield options in a low yield world, dividend growth strategies and China.

This past week, I had the opportunity to sit down and talk with Connor O'Brien, CEO of O'Shares ETFs, to talk about the current prospects for fixed income investors. As most everybody is already well aware, broad large-cap indexes and long-term Treasuries are both yielding less than 2% and investors need to be able to find ways to boost their portfolio income without venturing too far out on the risk spectrum.

O'Shares currently offers four different ETFs - three of which focus on the quality dividend growth theme and one that targets the largest internet names in the world.

  • O'Shares U.S. Quality Dividend ETF (OUSA)
  • O'Shares U.S. Small Cap Quality Dividend ETF (OUSM)
  • O'Shares Europe Quality Dividend ETF (OEUR)
  • O'Shares Global Internet Giants ETF (OGIG)

Among the things we discussed...

  • The Evergrande bond default in China: How widespread is the issue and should investors be worried about it affect their portfolios?
  • Alternative to low yielding bonds: Do junk bonds, dividend equities, covered call strategies or other asset classes make sense in the current market?
  • Dividend stocks vs. growth stocks: Could trends shift over the next decade?
  • International vs. United States: The last decade has belonged almost exclusively U.S. large-cap growth stocks. Will the 2020s feature a major rotation?
  • Dividend growth rates: Can investors expect to achieve anywhere near the 10% growth rates they've enjoyed in recent years?
  • The importance of dividend stock targeting: Investing in broad dividend ETFs vs. more targeted dividend quality growth portfolios.
  • Europe prospects: Does a different geopolitical and COVID recovery effort lead to opportunity for investors?

Over the past three years annualized, OGIG has been the company's star performer. It's averaged a gain of nearly 34% a year compared to the 20% average annual return of the First Trust Dow Jones Internet Index ETF (FDN).

During the same time frame, OUSA has gained around 11-12% per year. That's just slightly lagging other larger dividend growth ETFs, including the WisdomTree U.S. Quality Dividend Growth ETF (DGRW), which shares a similar strategy.

Please give it a listen! I'd love to hear your thoughts or questions in the comments section down below!

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