“It (revenue) isn’t prone to manipulation, cyclical events or company decisions,” added French.
Innovative Approaches to Smart Beta
The advent of revenue weighting has allowed OppenheimerFunds to expand their product line through that single metric to 12 revenue-weighted ETFs that cater to specific areas of the markets domestically and internationally.
These revenue-weighted strategies can provide investors with solutions that can thrive in a value cycle or growth cycle.
“Not only do you get the broad-based coverage, but you do have a really robust set of strategies for a value cycle,” said French. “It really gives you a portfolio that results in a unique value representation and orientation, but even in a growth cycle, there’s participation with mitigation of downside risk.”
For more information, visit www.oppenheimerfunds.com/etfs.
An investment in the Fund is subject to investment risk, including the possible loss of the principal amount invested. There is no guarantee that the issuers of stocks will declare dividends in the future, or that dividends will remain at their current levels or increase over time. The alternate weighting approach employed by the Fund (i.e., using revenues as a weighting measure), while designed to enhance potential returns, may not produce the desired results. Because the Fund is rebalanced quarterly, portfolio turnover may exceed 100%. The greater the portfolio turnover, the greater the transaction costs, which could have an adverse effect on Fund performance.
Carefully consider fund investment objectives, risks, charges, and expenses. Visit oppenheimerfunds.com or call your advisor for a prospectus with this and other fund information. Read it carefully before investing.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.
OppenheimerFunds is not affiliated with ETF Trends.