Revenue Weighted ETFs: A Smarter Smart Beta Strategy

There’s no shortage of smart beta strategies in the market today ranging from single or multi-factor products, to weighting stocks equally or based on companies’ fundamentals, like cash flow, earnings, or dividends.

The search across the financial industry is on to find an alternative market cap weighting and enhanced returns. OppenheimerFunds believes it may have found the smartest of smart beta strategies through revenue weighting.

On the upcoming webcast, Why Revenue Weighting Now, Drew Thornton, Investment Strategist at OppenheimerFunds, Sharon French, Head of Beta Solutions at OppenheimerFunds, and Peter Novak, Head of Platform Analytics at OppenheimerFunds, will discuss OppenheimerFunds’ customized indexing methodology and the potential opportunities of incorporating a revenue-weighted theme in an investment portfolio.

OppenheimerFunds’ suite of Revenue Weighted Strategy ETFs include Oppenheimer Large Cap Fund (NYSEArca: RWL), Oppenheimer Mid Cap Fund (NYSEArca: RWK) and Oppenheimer Small Cap Fund (NYSEArca: RWJ), and Oppenheimer Ultra Dividend Revenue ETF (NYSEArca: RDIV), which are all based on the fundamental weighting of revenue that exposes these strategies to an attractive combination of smart beta factors.

“We believe by applying the revenue-weighted methodology to known indices such as the S&P 500, investors may improve their exposure to the market,” OppenheimerFunds states. “Revenue weighting, unlike market capitalization, aims to lower exposure to overvalued companies, while still maintaining broad diversification.”