Furthermore, as more investors consider international investment options, many are also looking into smart beta strategies that can potential limit downside risks and still provide upside potential.
For instance, the Oppenheimer Emerging Markets Revenue ETF (NYSEARCA: REEM) is a relatively new way for investors to view emerging markets equities. REEM uses the revenue-weighting methodology Oppenheimer has had success with among U.S. equities, including dividend stocks and small-cap names.
Along with emerging market exposure, ETF investors can also consider broad global plays like the Oppenheimer Global Revenue ETF (NYSEArca: RGLB), which seeks to outperform the MSCI All Country World Index, and Oppenheimer International Revenue ETF (NYSEArca: REFA), which seeks to outperform the MSCI EAFE Index.
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.
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