ETF Providers Are Increasingly Expanding on Smart Beta

More recently, OppenheimerFunds expanded on its lineup of smart beta strategies with single- and multi-factor ETFs, which include Oppenheimer Russell 1000 Momentum Factor ETF (Cboe: OMOM), Oppenheimer Russell 1000 Quality Factor ETF (Cboe: OQAL), Oppenheimer Russell 1000 Size Factor ETF (Cboe: OSIZ), Oppenheimer Russell 1000 Value Factor ETF (Cboe: OVLU), Oppenheimer Russell 1000 Low Volatility Factor ETF (Cboe: OVOL), Oppenheimer Russell 1000 Yield Factor ETF (Cboe: OYLD), Oppenheimer Russell 1000 Dynamic Multifactor ETF (Cboe: OMFL) and Oppenheimer Russell 2000 Dynamic Multifactor ETF (Cboe: OMFS). The multi-factor ETFs select companies through exposure to a subset of the low volatility, momentum, quality, size and value factors.

The factor ETFs are “for the advisors who feel like they want to put together the persistent factors in a way that’s meaningful to them in their practices that will drive client outcomes,” French said.

As more look for alternative options to diversify away from traditional equity investments like size and style, investors have turned to smart beta or factor-based ETF strategies that enable anyone to gain precise access to academically proven market exposures.

“We believe strongly in factor diversification and have done a lot of work on the academically supported, rewarded factors that are these persistent drivers of return,” French added.

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