Small-Cap Dividend ETF Rebalanced Portfolio
The ALPS O'Shares U.S. Small-Cap Quality Dividend ETF updated its holdings, impacting the companies included in the fund.
Updated on Sept. 21, 2026 in Investing
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The ALPS O'Shares U.S. Small-Cap Quality Dividend ETF completed its annual index reconstitution on September 18, 2026. This process involved updating the portfolio to maintain its focus on dividend-paying, high-quality small-cap stocks.
Why it matters
The rebalance ensures the fund continues to filter for strong balance sheets, consistent profitability, and reliable cash flow by removing companies that no longer meet these criteria. Investors should note how these changes shift the fund's underlying exposure to different industries and specific companies.
The index added 28 holdings and removed 26, leaving 111 total securities in the portfolio. Individual security weights are strictly capped at 2% to manage concentration risk.
The players
ALPS O'Shares U.S. Small-Cap Quality Dividend ETF
An investment fund that provides exposure to small-cap stocks selected for quality and dividend consistency.
Concentra Group Holdings Parent Inc
A company recently added to the ETF as a top weighting.
Universal Health Services Inc
A company recently added to the ETF as a top weighting.
Conagra Brands Inc
A company removed from the ETF portfolio during the annual reconstitution.
The details
The ETF uses a multi-factor screening model that systematically excludes businesses burdened by high debt levels or declining earnings quality. By capping sectors at 22% and individual stocks at 2%, the fund avoids over-concentration in any single area. This rebalance specifically removed names such as Conagra Brands, The Wendy's Company, Albertsons, and Lamb Weston, while adding new weightings like Concentra Group Holdings and Universal Health Services.
Timeline
The annual index reconstitution was completed on September 18, 2026.
Money Landscape
This rebalancing follows the fund's multi-factor model screening methodology designed to prioritize cash-flow reliability over higher-risk small-cap growth. It marks a departure from previous holdings that no longer meet the current quality and debt-level requirements.
If you hold this fund, review your account statements to understand how these sector and stock changes impact your current diversification strategy. Discuss whether these new holdings align with your broader financial goals with a qualified financial professional.
The takeaway
The fund update demonstrates how disciplined index management periodically cycles out companies that fall short of profitability or balance-sheet standards. Review your portfolio's current weighting to ensure it still matches your intended level of small-cap exposure.
Further reading
For more background on how index funds adjust their holdings, see our guide on Investing.
Source note: This article includes information reported by ETF Trends.
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