The ETF previously known as the ALPS O’Shares Europe Quality Dividend ETF (OEUR) is now the ALPS O’Shares International Developed Quality Dividend ETF (OEFA). That change that went into effect at the start of this month. OEFA follows the O’Shares International Developed Quality Dividend Index. That index is an international gauge comparable to the Europe-focused index followed by the previous iteration of the ETF.
In simple terms, OEFA has morphed from a Europe-specific fund to an ETF with a broader ex-U.S. developed markets opportunity set. For example, Japan is OEFA’s largest country weight at 15.65%. That’s potentially a positive attribute at a time when Japanese stocks are among the best performers in the developed world. In fact, OEFA embraces the increasing quality profile of Japan equities (rising shareholder rewards) and other ex-U.S. stocks.
“OEFA is designed to provide efficient and transparent access to a portfolio of high quality, dividend paying large- and mid-cap companies in developed ex-US markets selected based on several fundamental metrics such as return on assets, leverage and dividend growth,” according to the issuer.
OEFA Still Has the European Goods
One of 2025’s more ballyhooed investment themes has been the resurgence of European equities. On that note, prospective OEFA investors may be wondering if the ETF’s shedding of its dedicated Europe spots is a bad thing. It’s not. Market participants need not fret. That’s because the bulk of the fund’s geographic exposure remains in Europe. For example, France, the U.K., and Switzerland combine for about 40% of OEFA’s roster.
In another sign that OEFA’s change could pay off for investors going forward, multiple members of the ETF’s portfolio hailing from various corners of the globe appear on Morningstar’s recently released list of the best international stocks to own.
Those rankings include some emerging markets stocks — an asset class not featured in OEFA — but the bulk of the list comprises European and Japan equities. Many of those reside in the ALPS ETF. One example is Swiss pharmaceuticals giant Roche, part of OEFA’s 14.57% healthcare weight.
“Roche’s biologics focus and innovative pipeline are key to the firm’s ability to maintain its wide moat and continue to achieve growth as current blockbusters face competition,” noted Morningstar analyst Karen Andersen. “Blockbuster cancer biologics Avastin, Rituxan, and Herceptin are seeing strong headwinds from biosimilars. However, Roche’s biologics focus (more than 80% of pharmaceutical sales) provides some buffer against the traditional intense declines from small-molecule generic competition.”
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