Furthermore, the strategy will try to capitalize on historical data and studies that have revealed while more volatile, smaller stocks can generate outsized returns over time. The reverse cap-weighting methodology also provides a less concentrated distribution of stock weights and potentially increases overall diversification.
Top component holdings include Chesapeake Energy 0.9%, Patterson Companies 0.9%, Range Resources 0.8%, Helmerich & Payne 0.8%, FLIR Systems 0.7%, Newfield Exploration 0.7%, Navient 0.7%, Signet Jewelers 0.7%, Flowserve 0.7% and Assurant 0.7%.
Sector weights include consumer discretionary 20.9%, consumer staples 4.6%, energy 8.1%, financials 12.8%, health care 9.3%, industrials 14.8%, information technology 12.0%, materials 5.4%, real estate 6.%, telecom 0.3% and utilities 5.0%.
Revenue-weighted ETFs have been around in the industry for a while. For example, OppenheimerFunds’ suite of revenue-weighted ETFs includes 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 ESG Revenue ETF (NYSEArca: ESGL) and Oppenheimer Global ESG Revenue ETF (NYSEArca: ESGF).
For more information on new fund products, visit our new ETFs category.