While RWW has recently been setting a torrid pace, the potential exists for the ETF to deliver out-performance of traditional rivals.
“The data also suggests the stage could be set for outperformance among revenue-weighted strategies. S&P 500 valuations are well above their 5-year average, but the last time price-to-sales ratios were near this level was before the tech bubble, a period when revenue-weighted strategies outperformed by 4.8% per year,” notes Oppenheimer.
Some strategists also argue that the financial sector may be a good area to look at this time around, given the potential for growth in a rising rate environment, along with potential tax and regulatory changes under the Donald Trump administration. After failing on the healthcare front, Congressional Republicans are likely to push forward with tax reform, looking to make that the centerpiece of their 2017 legislative accomplishments.
OppenheimerFunds’ suite of revenue-weighted ETFs also 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).
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