New ETF Takes Revenue Weighting Global

RGRO “is comprised of the top 5 developed and top 5 emerging countries based on their percentage growth of their year over year GDP from the prior 2 quarters.  The index universe is the Standard & Poors Global Broad Market Index,” according to RevenueShares.

RevenueShares selects the top 10 revenue-generating countries and assigns a weight of 10% to each. RGRO’s developed market country weights are allocated to Denmark, Hong Kong, Israel, Norway and Singapore, several of which carry AAA credit ratings. The ETF’s emerging market allocations are Brazil, Czech Republic, Greece, Mexico and Thailand.

Nearly three-quarters of RGRO’s weight goes to staples stocks with industrials and financial services combining for 10%. The new ETF’s annual expense ratio is 0.7%.

ETF Trends editorial team contributed to this post.