At the end of January, RevenueShares launched an exchange traded fund (ETF) based on the niche area of revenue weighting. How have challenged markets affected the innovative fund?

The RevenueShares Navellier Overall A-100 Fund (RWV) was created in order to identify an index, rank constituents by company revenue and rebalance once a year, with the goal of providing a higher return over time than the index would normally do by itself. The fund is constructed using an eight-factor model to give stocks a letter grade. From there, the top 100 A-rated stocks are included and ranked by revenue annually on Sept. 1, and rebalanced on the first day of each calendar quarter.

RMV has an expense ratio of 0.65% with holdings in 100 securities. Its top holdings include: Wal-Mart, 7.72%; Home Depot, 6.83%; Lowe’s Co., 5.33%; Astrazeneca PLC ADR, 4.42%; Accenture LTD, 4.14%; McDonald’s Corp., 4.02%; World Fuel Services Corp, 3.05%; General Mills Inc, 2.75%; AMGEN Incorp, 2.62%; BJ’s Wholesale Club Inc, 1.92%.

The top three holdings:

  • Wal-Mart (WMT), which is up 2.0% in the last month and down 11.5% in the last three months, sales performance for the month of February beat analysts’ expectations, and gave a boost to the retail sector.
  • Home Depot (HD), which is down 11.5% in the last month and down 19.1% in the last three months, reported fiscal fourth-quarter net loss on $602 million in charges related to its exit from some businesses.
  • Lowe’s (LOW), which is down 19.6% in the last month and down 35.3% in the last 3-months, reported a 60% drop in profits for its fiscal fourth quarter, hurt by falling sales and margins. It is seen that rising unemployment, falling home prices, tight credit and volatile equity markets are the main culprits in reducing consumer confidence and impact sales, according to TheStreet.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.