A Top-Tier, Multi-Factor ETF Strategy

OppenheimerFunds is celebrating its one-year anniversary of its suite of factor-based, smart beta ETFs, which have also been among the best performing strategies in their respective categories.

“We are excited to see the market recognition for our dynamic multi-factor approach that utilizes the expertise of our Global Multi-Asset team to adjust factor exposure based on specific market and economic signals. Our outperformance against both our benchmark and category over the past year further validates the full merits of our multi-factor investment approach to clients,” Sharon French, Head of Beta Solutions, OppenheimerFunds, said in a note.

Among its strategies, the Oppenheimer Russell 1000 Dynamic Multifactor ETF (Cboe: OMFL) generated a 14.8% one-year return, which has placed it among the top 3% of fund strategies under Morningstar’s large-blend category. Additionally, the Oppenheimer Russell 2000 Dynamic Multifactor ETF (Cboe: OMFS) returned 9.8% over the past year, placing the smart beta strategy in the top 15% among Morningstar’s small-blend category.

OMFL and OMFS select companies through exposure to a subset of the low volatility, momentum, quality, size and value factors. Investors may combine the various factors to gain an easy-to-use and quick way to access a diversified market position. This combined factor or multi-factor, smart beta approach may be a good core position for any equity portfolio.