OppenheimerFunds announced its acquisition of VTL Associates, an independent investment firm known for its RevenueShares exchange traded funds, joining a growing group of mutual fund providers expanding their investment suite with ETFs.
According to a press release, OppenheimerFunds acquired VTL on Wednesday. VTL has been in talks to woo a suitable buyer, so the acquisition comes as no real surprise. [RevenueShares Looks for Suitors]
VTL manages $1.7 billion across eight RevenueShares ETFs and separate accounts. The RevenueShares ETFs are based on smart-beta indices that weight holdings based on revenue and aim to diminish exposure to overvalued companies. The strategies include the RevenueShares Large Cap Fund (NYSEArca: RWL), RevenueShares Mid Cap Fund (NYSEArca: RWK), RevenueShares Small Cap Fund (NYSEArca: RWJ), RevenueShares Ultra Dividend Fund (NYSEArca: RDIV), RevenueShares Global Growth Fund (NYSEArca: RGRO), RevenueShares Financials Sector Fund (NYSEArca: RWW), RevenueShares ADR Fund (NYSEArca: RTR) and RevenueShares Navellier Overall A-100 Fund (NYSEArca: RWV).
“Investors are looking to active managers for innovative solutions to add to their overall investment strategy, including products that are designed to deliver better-than-market returns with full transparency of their investment process,” Art Steinmetz, Chairman, President and CEO of OppenheimerFunds, said in the press release. “VTL’s distinctive approach to smart beta is an outstanding addition to our compelling array of investment strategies across all asset classes.”
The ETF industry has been incrementally growing over the years as more investors and advisors turn to the relatively cheap and efficient investment vehicle. Consequently, with the ETF industry cutting into the mutual fund companies’ market share, more fund providers are considering ETF options to bolster assets.
OppenheimerFunds is just one of many mutual fund providers and money managers seeking to expand their presence in the financial space through ETFs. For instance, T. Rowe Price Group, Principal Global Investors and Goldman Sachs Asset Management have all filed with the Securities and Exchange Commission to launch ETFs. [Active Money Managers Jumping on the ETF Bandwagon]
More recently, Legg Mason has filed to launch four smart-beta, index-based ETFs. [Legg Mason Crafting Four Smart-Beta, Index-Based ETFs]
Unlike these other firms, Oppenheimer has opted to acquire a boutique ETF provider, capitalizing on RevenueShares’ Securities and Exchange Commission exemptive relief to launch ETFs. Janus Capital Group is another large mutual fund provider to take this route into the ETF industry after acquiring VelocityShares last year. [Janus Looks to Increase ETF Footprint With VelocityShares Buy]
For more information on the ETF industry, visit our current affairs category.
Money managers who are looking into constructing their own ETFs may also be interested in attending the second annual ETF Boot Camp in New York later this month. Whether you’re an ETF start-up, fund company, broker dealer, pension plan, endowment, private equity firm, fund board independent director, 401k plan provider or ETF industry executive…this conference is designed for you. This one-of-a-kind event will condense everything you need to know about the inner workings of the ETF business into two days.
Max Chen contributed to this article.