SS&C ALPS has agreed to take over four ETFs from O’Shares Investments holding $1.52 billion in assets in what the two issuers call a strategic partnership.
In a statement, SS&C said it would reorganize the O’Shares ETFs into new funds under the ALPS ETF Trust, which holds more than $8.6 billion in assets. O’Shares will continue to provide its in-house indexes to the ETFs under a licensing agreement and provide marketing, while SS&C will lead distribution for the funds.
Shareholder meetings for SS&C and O’Shares investors to vote on the deal have yet to be announced.
O’Shares, which counts “Shark Tank” panelist Kevin O’Leary as its chairman, first launched in July 2015 with the O’Shares U.S. Quality Dividend ETF (OUSA).
Three of its funds posted returns north of 20% in 2021, while its O’Shares Global Internet Giants ETF (OGIG) lost nearly 10% in part by holding Chinese firms hit by investor pullbacks in the wake of a government crackdown on the industry last summer.
|Ticker||Fund||Expense Ratio||AUM ($M)||2021 Return|
|OUSA||O’Shares U.S. Quality Dividend ETF||0.48%||$826.26||24.72%|
|OEUR||O’Shares Europe Quality Dividend ETF||0.48%||$41.25||20.57%|
|OUSM||O’Shares U.S. Small-Cap Quality Dividend ETF||0.48%||$163.69||22.02%|
|OGIG||O'Shares Global Internet Giants ETF||0.48%||$486.14||-9.98%|
Financial terms of the deal were not disclosed. SS&C and O’Shares did not respond to requests for comment Wednesday.