Oppenheimer Funds, a leading global asset manager, has entered the smart beta exchange-traded funds space with the launch of eight new ETFs. All the funds are revenue-weighted and come in direct response to client demand, who want an ETF with the benefits of an active strategy.
In December, the firm completed its acquisition of VTL Associates, known for its RevenueShares range of ETFs. It has subsequently re-branded the suite of products, which offers global and regional equity exposures while weighting constituents based on their top line revenue.
A revenue-weighted approach may contain benefits over alternative weighting schemes. For example, revenue is an important indicator of a firm’s financial health while price-weighted approaches may be influenced by behavioural trends in the stock market. Secondly, revenue is less open to potential manager manipulation compared to other fundamental factors such as earnings
Art Steinmetz, Chairman and CEO at OppenheimerFunds.
Art Steinmetz, Chairman and CEO at OppenheimerFunds, commented: “The Oppenheimer Factor Weighted ETFs are another example of how we are striving to best serve our clients with the products and solutions they are looking for. We think revenue weighting is particularly compelling because it is designed to create a better balanced portfolio.”
John McDonough, Head of Distribution at OppenheimerFunds, said: “Our introduction of revenue weighted ETFs is a direct response to feedback from our clients, who are increasingly looking for an ETF offering with the benefits of an active strategy. We believe that re-weighting indices on the basis of fundamental factors like revenue may enable our investors to earn both higher returns and better returns on a risk-adjusted basis than market cap indices over the long term.”
Vince Lowry, Lead Portfolio Manager, Oppenheimer Revenue Factor Team, added: “This proprietary offering brings a unique approach for Oppenheimer Funds’ clients. Identifying revenue as our fundamental factor gives all of our ETFs a rules-based, disciplined approach not easily manipulated or influenced by market emotionality.”
The full suite of Oppenheimer Factor Weighted ETFs include:
Oppenheimer Large Cap Revenue ETF
Oppenheimer Mid Cap Revenue ETF
Oppenheimer Small Cap Revenue ETF
Oppenheimer Ultra Dividend Revenue ETF
Oppenheimer Global Growth Revenue ETF
Oppenheimer ADR Revenue ETF
Oppenheimer Financials Sector Revenue ETF
Oppenheimer Navellier Overall A-100 Revenue ETF