Investors who are interested in a multi-factor strategy that combines these widely observed factors can look to the recently launched Oppenheimer Russell 1000 Dynamic Multifactor ETF (Cboe: OMFL) and Oppenheimer Russell 2000 Dynamic Multifactor ETF (Cboe: OMFS). The multi-factor OMFL selects companies in the Russell 1000 Index through exposure to a subset of the low volatility, momentum, quality, size and value factors. OMFS provides access to companies in the Russell 2000 Index through exposure to the same low volatility, momentum, quality, size and value factors.
Additionally, investors who believe in a return to fundamentals can also look to the revenue-weighted methodology, including options like the Oppenheimer Large Cap Revenue ETF (NYSEArca: RWL), Oppenheimer Mid Cap Revenue ETF (NYSEArca: RWK) and Oppenheimer Small Cap Revenue ETF (NYSEArca: RWJ).
The underlying index implements a rules-based, disciplined smart beta indexing methodology targets known indices like the S&P 500 and tries to improve their performance return through weighting each security in the index by top line revenue. Components are then rebalanced every quarter to keep the Revenue-Weighted indices in line with the companies’ most recently reported revenue levels.
For more information on alternative index-based strategies, visit our smart beta category.
For more information on alternative index-based strategies, visit our smart beta category.