Specifically, the rules-based, disciplined smart beta indexing methodology targets known indices like the S&P 500 and tries to improve their performance return through weighting each security in the index by top line revenue. Components are then rebalanced every quarter to keep the Revenue-Weighted indices in line with the companies’ most recently reported revenue levels.
For instance, RWL reweights large-cap S&P 500 companies based on revenues, RWK reweights constituents from the S&P MidCap 400 Index, and RWJ reweights on S&P SmallCap 600 stocks. RDIV offers growth and income potential with access to the top large- and mid-cap (S&P 400 & 500) dividend paying stocks weighted by revenue.
Financial advisors who are interested in learning more about a revenue weighted investment strategy can register for the Tuesday, November 1 webcast here.
The alternate weighting approach employed by the Fund (i.e., using revenues as a weighting measure), while designed to enhance potential returns, may not produce the desired results. Because the Fund is rebalanced quarterly, the Fund may experience portfolio turnover in excess of 100%. The greater the portfolio turnover, the greater the transaction costs to the Fund, which could have an adverse effect on the Fund’s performance.
Carefully consider fund investment objectives, risks, charges, and expenses. Visit oppenheimerfunds.com or call your advisor for a prospectus with this and other fund information. Read it carefully before investing.
OppenheimerFunds is not affiliated with ETF Trends.