Smart Beta ETFs Help Investors Achieve Specific Outcomes

The Oppenheimer Russell 1000 Size Factor ETF (OSIZ) focuses on the size factor, which refers to smaller companies outperforming larger company stocks and is screened by full market capitalization.

The Oppenheimer Russell 1000 Momentum Factor ETF (OMOM) follows the idea that stocks which rise or fall in price tend to continue rising or falling in price.

The Oppenheimer Russell 1000 Quality Factor ETF (OQAL) bets on higher quality companies in the hopes that they perform better than lower-quality companies.

The Oppenheimer Russell 1000 Low Volatility Factor ETF (OVOL) follows the theme where stocks that exhibit lower volatility tend to perform better than stocks with higher volatility.

Lastly, the Oppenheimer Russell 1000 Yield Factor ETF (OYLD) tracks the idea that higher-yielding stocks tend to perform better than stocks with lower yields.

Additionally, the factors can be combined into something like Xtrackers Russell 1000 Comprehensive Factor ETF (NYSEArca: DEUS) and Xtrackers Russell 2000 Comprehensive Factor ETF (NYSEArca: DESC), which select companies through exposure to a subset of the low volatility, momentum, quality, size and value factors.

For more information on factor-based investments, visit our smart beta category.