Investors looking for a unique, potentially rewarding avenue for investing in global equities can consider the Oppenheimer Global Revenue ETF (NYSEArca: RGLB), which adheres to the revenue-weighted methodology made popular by Oppenheimer’s ETF suite. RGLB seeks to outperform the MSCI All Country World Index.
RGLB debuted in July and holds nearly 820 stocks. Global ETFs typically hold a mixture of U.S. and foreign stocks, a strategy RGLB adheres to as U.S. stocks account for 34.1% of the ETF’s weight.
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.
Traditional market capitalization-weighted indices are top heavy and expose investors to some of the most high-flying stocks of the current market. If investors are concerned about the potential risks of an overextended market, consider a revenue-weighted exchange traded fund strategy to focus on companies with better fundamentals.
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.