OppenheimerFunds launches three new revenue-weighted ETFs

Jul 13th, 2017 | By | Category: Equities

Factor Investing Strategy Briefing - Thursday 29th June 2023 - The Connaught, Mayfair. Please join us for our annual smart beta and factor investing event, featuring Goldman Sachs Asset Management, FlexShares, First Trust, MSCI and WisdomTree. Please register now if you would like to attend.

OppenheimerFunds has launched three new revenue-weighted ETFs on Bats Exchange, the Oppenheimer Emerging Markets Revenue ETF (REEM), Oppenheimer Global Revenue ETF (RGLB), and Oppenheimer International Revenue ETF (REFA), providing exposure to the emerging, global and international market segments respectively.

OppenheimerFunds launches three new revenue-weighted ETFs

OppenheimerFunds now has ten ETFs within its revenue-weighted suite.

“Our newest ETF solutions were created in direct response to our clients’ growing appetite for revenue-weighted strategies in the global marketplace,” said Sharon French, head of beta solutions at OppenheimerFunds. “Our approach offers a durable value proposition, with attractive risk-adjusted performance and the broad market diversification that has historically attracted investors to index strategies.”

The securities in each of the new smart beta funds are weighted by their trailing 12-month top-line revenue, rather than their market capitalization, with a 5% maximum portfolio weight for any one issuer. The funds are rebalanced quarterly.

According to OppenheimerFunds, by weighting securities in broad market indices based on revenue rather than market capitalization, the fundamentally weighted strategies offer the opportunity to reduce overexposure to potentially overpriced sectors and stocks while still providing broad diversification.

REEM tracks the OFI Revenue Weighted Emerging Markets Index, seeks to outperform the MSCI Emerging Markets Index, and comes with a total expense ratio (TER) of 0.46%. RGLB tracks the OFI Revenue Weighted Global Index, seeks to outperform the MSCI All Country World Index, and has a TER of 0.43%. REFA tracks the OFI Revenue Weighted International Index, seeks to outperform the MSCI EAFE Index, and has a TER of 0.42%.

The new offerings build on the firm’s existing suite of Oppenheimer revenue-weighted ETFs, which include solutions in the environmental, social and governance (ESG) space. The additional funds in the range include:

Oppenheimer Large Cap Revenue ETF (RWL)
Oppenheimer Mid Cap Revenue ETF (RWK)
Oppenheimer Small Cap Revenue ETF (RWJ)
Oppenheimer Ultra Dividend Revenue ETF (RDIV)
Oppenheimer Financials Sector Revenue ETF (RWW)
Oppenheimer ESG Revenue ETF (ESGL)
Oppenheimer Global ESG Revenue ETF (ESGF)

Tags: , , , , , , , ,

Leave a Comment