Oppenheimer entered the exchange traded funds industry via its acquisition of RevenueShares, a purveyor of revenue-weighted ETFs and Oppenheimer is continuing to build out that revenue-weighted lineup. Last week, the fund issuer added three new revenue-weighted ETFs to its roster.
The new Oppenheimer ETFs are the Oppenheimer Emerging Markets Revenue ETF (NYSE:REEM), the Oppenheimer Global Revenue ETF (NYSE:RGLB) and the Oppenheimer International Revenue ETF (NYSE:REFA).
The Oppenheimer Emerging Markets Revenue ETF looks to outperform the widely followed MSCI Emerging Markets Index. REEM charges 0.46 percent per year, or $46 on a $10,000 investment. The new ETF allocates 23.6 percent of its weight to South Korea and almost 21 percent to China. Taiwan and Russia combine for almost 20 percent, according to issuer data.
Financial services, energy and technology stocks combine for almost half of the revenue-weighted emerging markets ETF's weight.
An International Idea
With investors flocking to ex-US developed market ETFs this year, the Oppenheimer International Revenue ETF could prove to be a well-timed idea. The new ETF looks to outperform the popular MSCI EAFE Index by using the issuer's revenue-weighted methodology.
“By weighting companies by their revenue rather than their market capitalization, the fund aims to provide investors with increased exposure to the stocks of companies across the developed markets with strong revenues,” according to Oppenheimer. “This approach also avoids the traditional index’s bias towards overvalued stocks, while maintaining a fully transparent investment process and offering the broad market diversification that has historically attracted investors to index strategies.”
REFA allocates 31.5 percent of its weight to Japan and about 23 percent of its combined weight to the U.K. and France. The new ETF is noticeably overweight Israel at almost 8 percent.
The Oppenheimer Global Revenue ETF looks to outpace the MSCI All Country World Index. RGLB allocates almost a third of its weight to U.S. stocks and a combined 20.6 percent to Japan and the U.K.
Financial services and consumer staples stocks combine for a third of the new ETF's weight. Industrial and consumer staples names combine for over a quarter of RGLB's roster. RGLB charges 0.43 percent per year, or $43 on a $10,000 investment. REEM and REFA charge 0.46 percent and 0.42 percent per year.
“The signature revenue-weighted methodology weights component holdings based on their trailing 12 month top-line revenue instead of traditional market capitalization, with a maximum 5% portfolio weight for any single issuer,” according to ETF Trends.
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