With the growing migration towards index investing strategies, financial advisors may be wondering whether traditional market cap weighting is the right approach for their clients.
On the upcoming webcast, Anchor Your Core with Revenue Weighting, Sharon French, Head of Beta Solutions for OppenheimerFunds, David Mazza, Head of ETF Investment Strategy, Beta Solutions at OppenheimerFunds, and Brian Levitt, Senior Investment Strategist for OppenheimerFunds, will discuss why a revenue-weighted indexing approach could serve as a compelling alternative to market-cap weighting for core equity positions.
OppenheimerFunds revenue-weighted ETF options include the Oppenheimer Large Cap Revenue ETF (NYSEArca: RWL), Oppenheimer Mid Cap Revenue ETF (NYSEArca: RWK), Oppenheimer Small Cap Revenue ETF (NYSEArca: RWJ), Oppenheimer Ultra Dividend Revenue ETF (NYSEArca: RDIV), Oppenheimer Financials Sector Revenue ETF (NYSEArca: RWW), Oppenheimer Global Revenue ETF (NYSEArca: RGLB), Oppenheimer International Revenue ETF (REFA), Oppenheimer Emerging Markets ETF (REEM), Oppenheimer ESG Revenue ETF (ESGL), and the Oppenheimer Global ESG Revenue ETF (ESGF).
Revenue weighting offers specific advantages to market-cap weighting. Weighting by revenue provides the same broad coverage of the market, but with greater exposure to attractively valued companies. Revenue weighting is anchored by fundamentals, not investor sentiment so it mitigates exposure to potentially overvalued stocks and maintains more consistent sector representation over time. The result is strong historical long-term performance compared to its true market cap benchmarks.