Related: ETF Investors Can Look Outside of U.S. for Value
Consequently, investors who believe in a return to fundamentals a rotation to value and size can look to value-oriented smart beta ETF strategies, such as the revenue-weighted methodology, including the Oppenheimer Large Cap Revenue ETF (NYSEArca: RWL), Oppenheimer Mid Cap Revenue ETF (NYSEArca: RWK) and Oppenheimer Small Cap Revenue ETF (NYSEArca: RWJ).
Revenue weighting could provide diversified exposure to the market, is not influenced by stock price, reflects a truer indication of a company’s value and offers stable sector exposure. Moreover, revenue weighting may provide a more value-oriented portfolio and historically outperformed in a value-driven market while showing lower drawdowns during growth-driven markets.
For more information on alternative index-based strategies, visit our smart beta category.