Heading into 2018, some of the biggest questions on investors’ minds were, “How much longer can this aging bull market last,” and “Is there an end in sight for this market cycle?” In OppenheimerFunds’ opinion, the current cycle still has room to run, although we do believe we’re getting closer to its end.
On the upcoming webcast, 2018 Market View Through a Smart Beta Lens, OppenheimerFunds’ Head of ETF Investment Strategy, David Mazza, and Senior Investment Strategist Brian Levitt, address the most pressing questions investors have about the market cycle and identify signals that will indicate when it may end.
They also explore how to potentially benefit this year from an allocation to Smart Beta strategies. Investors are increasingly turning to Smart Beta ETFs as a way to diversify their portfolios. But with a growing number of products in the market, how do advisors know where to steer their clients? Mazza and Levitt provide insights on this front as well.
OppenheimerFunds recently launched a suite of eight new Smart Beta ETFs – including two Multi-Factor and six Single-Factor products – in partnership with global index provider FTSE Russell.
Dynamic Multi-Factor ETFs
Investors who prefer a turnkey, catch-all approach may leverage OppenheimerFunds’ two new dynamic Multi-Factor ETFs, which combine the various single factors to provide an easy-to-use way to access a diversified market position. The Multi-Factor ETFs leverage the expertise of OppenheimerFunds’ research to adjust their five factors on a monthly basis to match prevailing economic conditions in a single, packaged solution.
- Oppenheimer Russell 1000 Dynamic Multifactor ETF (OMFL)
- Oppenheimer Russell 2000 Dynamic Multifactor ETF (OMFS)
Single-Factor ETFs
In addition to the Multi-Factor ETFs, the Single-Factor products offer precision exposure to well-established and time-tested investment styles including value, momentum, quality, size, yield and low volatility.
Stocks that appear cheap tend to perform better than stocks that appear expensive.
Refers to smaller companies outperforming larger company stocks and is screened by full market capitalization.
Stocks that rise or fall in price tend to continue rising or falling in price.
Higher quality companies tend to perform better than lower-quality companies.
Stocks that exhibit lower volatility tend to perform better than stocks with higher volatility.
Higher-yielding stocks tend to perform better than stocks with lower yields.
Any of these factor-based strategies can provide alternative options to traditional core equity investments like size and style.
Financial advisors who are interested in learning more about Smart Beta strategies can register for the Wednesday, January 31 webcast here.
An investment in the Fund is subject to investment risk, including the possible loss of principal amount invested. The Fund, seeks to provide exposure to investments based on the following factors: value, momentum, quality, low volatility and size, and to weight such factors based on changes in the economic cycle. There can be no assurance that doing so will enhance the Fund’s performance over time. Because the Fund is rebalanced monthly, portfolio turnover may exceed 100%. The greater the portfolio turnover, the greater the transaction costs, which could have an adverse effect on Fund 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.
Oppenheimer funds are distributed by OppenheimerFunds, Inc. OppenheimerFunds is not affiliated with ETF Trends.