Meanwhile, low-vol stocks underperform their benchmark as well as the average investor look to take on more portfolio risk in response to positive GDP growth and inflation, so investors would avoid conservative companies that historically exhibited stable payouts.
Investors interested in the size and value factors may consider targeted smart beta ETF plays, such as the Oppenheimer Russell 1000 Size Factor ETF (Cboe: OSIZ) and Oppenheimer Russell 1000 Value Factor ETF (Cboe: OVLU). OSIZ follows companies in the Russell 1000 Index with smaller market capitalizations than the broader U.S. equity market. OVLU tracks companies in the Russell 1000 Index that exhibit lower valuations relative to the broader U.S. equity market.
OppenheimerFunds also offers a suite of revenue-weighted ETFs that specifically focus on companies with high revenues, including the Oppenheimer Large Cap Revenue ETF (NYSEArca: RWL), Oppenheimer Mid Cap Revenue ETF (NYSEArca: RWK), Oppenheimer Small Cap Revenue ETF (NYSEArca: RWJ), Oppenheimer Ultra Dividend Revenue ETF (NYSEArca: RDIV), Oppenheimer Financials Sector Revenue ETF (NYSEArca: RWW), Oppenheimer ESG Revenue ETF (NYSEArca: ESGL) and Oppenheimer Global ESG Revenue ETF (NYSEArca: ESGF).
For more on smart beta ETFs, visit our Smart Beta Channel.