OneAscent Small Cap Core ETF (OASC) seeks to provide exposure to small-capitalization U.S. companies while incorporating faith-based screening criteria that exclude businesses conflicting with Christian values. This small-cap equity ETF targets companies with market capitalizations typically between $300 million and $2 billion.
How It Works
OASC employs an actively managed approach that combines traditional small-cap equity selection with values-based screening methodology. The fund excludes companies involved in activities such as abortion, pornography, gambling, tobacco, and alcohol production. Portfolio construction focuses on fundamental analysis to identify undervalued small-cap stocks that meet both financial and ethical criteria. Holdings are typically concentrated in 40-80 positions with quarterly rebalancing to maintain alignment with investment principles.
Key Features
- Faith-based screening excludes companies involved in abortion, gambling, tobacco, alcohol, and pornography while maintaining small-cap exposure
- Recently launched in June 2024, offering newer approach to values-based small-cap investing with active management
- Zero expense ratio structure provides cost-effective access to screened small-cap portfolio during initial launch period
Risks
- This ETF can lose value significantly during small-cap market downturns, potentially declining 40-50% in severe bear markets due to higher volatility
- Values-based screening may limit diversification and exclude profitable companies, potentially reducing returns compared to broad small-cap benchmarks
- As a newly launched fund with minimal assets, liquidity constraints and tracking difficulties may result in wider bid-ask spreads
Who Should Own This
Best suited for values-driven investors with high risk tolerance and 5+ year time horizons seeking small-cap exposure aligned with Christian principles. Appropriate as satellite holding representing 5-15% of equity allocation. Requires patience for fund maturation and comfort with faith-based investment screening potentially impacting returns.