This article was written by Dave Mazza, Head of Investment Strategy, Beta Solutions at OppenheimerFunds. The article originally appeared on the OppenheimerFunds blog and was republished with permission.
An investment in ETFs is subject to investment risk, including the possible loss of principal amount invested. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks.
ETF returns may not match the returns of their respective index, known as non-correlation risk, due to operating expenses incurred by the ETF. The alternate weighting approach employed by ETFs, while designed to enhance potential returns, may not produce the desired results.
Because ETFs are rebalanced quarterly, portfolio turnover may exceed 100%. The greater the portfolio turnover, the greater the transaction costs, which could have an adverse effect on ETF performance.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., 225 Liberty Street, New York, NY, 10281. © 2017 OppenheimerFunds Distributor, Inc. All rights reserved.