This is a rules-based strategy ETF that tracks the Optimize Strategy Index. It selects stocks using fundamental indicators such as the price-to-earnings ratio, earnings-per-share trend, and price-to-sales ratio, aiming to deliver excess returns over the market.

It suits investors who want to diversify across US stocks through a fundamentals-based strategy index rather than simple market-cap weighting.

It is a passive (index-tracking) ETF managed by Optimize Financial.

The fund uses fundamental indicators such as current earnings per share relative to their long-term trend, the price-to-earnings ratio, estimated future earnings growth, and the price-to-sales ratio to select large-cap and small- and mid-cap stocks using different criteria. Because it follows a rules-based strategy index rather than simple market-cap weighting, its holdings are reconstituted on a regular basis.

• Rules-based stock selection using fundamental indicators
• Large caps and small and mid caps evaluated under different criteria

Assets under management (AUM) stand at $256.4M, and the total expense ratio is 0.25% per year.

Unlike core ETFs that use simple market-cap weighting, fundamental strategy rules are reflected in the stock weights, so performance may follow a different path depending on the market environment.

Given the nature of a strategy index, its performance can diverge from the broad market, and relative results tend to shift when stocks with strong fundamental indicators come into favor. Short-term returns show volatility depending on the market environment and the rebalancing cycle.

Strategy and factor-based ETFs tend to see fund flows react more sensitively to market preferences than core index funds. When fundamental strategies attract market attention, investor interest can also shift toward related categories.

Its strength is rules-based fundamental diversification, while a point to note is that, as a strategy index, its performance can diverge from the broad market.

VIG, SCHD, and VYM shown in the table are lower-cost, larger ETFs focused on dividend growth and high dividends, and their stock selection criteria differ from OPTZ, which follows a fundamental strategy. DFAC is a multifactor core strategy and RDVY centers on dividend growth stocks, so both have a similar character. If you want broad US core exposure, you can also consider ETFs such as VTI, VTV for the value factor, and IJH for mid-cap exposure.

These are the points to review before investing in OPTZ. As a strategy index ETF, it is important to check in advance the nature of the strategy it tracks, the expense ratio, the diversification structure, and the turnover, and to consider whether it fits your investment goals.

Because the strategy index can move differently from the broad market, relative performance may lag in certain periods. Turnover from regular reconstitution and exchange rate fluctuations should also be taken into account.

It is a suitable choice for investors who want to diversify across US stocks with a fundamentals-based rules strategy. If you simply want to track the market, consider VTI, and if value or dividend orientation matters more, we recommend also comparing alternatives such as VTV and SCHD.