Our Approach

OppenheimerFunds Revenue Weighted Strategy ETFs offer a different approach to the ETF market.  While the vast majority of ETF assets are based on market capitalization, OppenheimerFunds uses the fundamental metric of revenue to weight the stocks in our ETFs. The OppenheimerFunds methodology is designed to maintain the benefits of traditional indexing while attempting to improve results from cap-weighted strategies. 

OppenheimerFunds believes revenue weighting is more efficient over a longer time period due to what revenue reveals about a company's strength. 

We only use revenue to weight a stock and not multiple metrics so as not to dilute the information revenue reveals.  By re-weighting based on known cap-weighted indices, we benefit from the rigorous selection process the index provider uses.

Why Revenue as Our Fundamental Metric?

We believe revenue is a true indicator of value

  • Revenue is a fundamental measure of a company's underlying value. Consistent company sales is also a  historical indicator of quality.
  • In many cases revenue weighting allows us to lower investors’ exposure to over-valued companies inflated by the market and gain exposure to undervalued stocks.
  • Revenue weighting more closely reflects the growth in the broader economy.

Our revenue methodology is a disciplined investment approach

  • Revenue, unlike other fundamental metrics applied to ETFs, is unique in its resistance to manipulation. It allows for a disciplined approach helping investors avoid some of the mistakes caused by human emotions.
  • Revenue is fundamental metric and can be applied consistently to all constituents of an index.
  • Top line revenue figures have tended to be more dependable than earnings, given the propensity for management to shift and cut costs in pursuit of a more attractive bottom line.
     

How We Apply Revenue Weighting to Our ETFs.

OppenheimerFunds Revenue Weighted Strategy ETFs™ are designed to select known equity indices, such as the S&P 500 Index, and seek to improve their performance returns.  This is achieved by re-weighting the constituents of an index based on each company’s revenue for the trailing four quarters.  We rebalance these weightings every quarter to keep the index in line with the most recently reported annual revenue.

The trailing 12-month revenue of a constituent is divided by the total trailing 12-month revenue of the index.  The percentagethen becomes that constituent's weight in our ETF.  Each constituent member is capped at five percent to keep our indices from being overexposed to any one company.

Each fund is rebalanced quarterly in accordance with the revenue data from each company.

Holdings data reflects the accounting positions as of the date listed, and may not reflect any trades made on that date.

On December 2, 2015, OppenheimerFunds, Inc. acquired 100% of the stock interests of VTL Associates, LLC, the investment adviser to the Oppenheimer Revenue Weighted ETF Trust, formerly the RevenueShares ETF Trust (the “Trust”). As of that date, OppenheimerFunds Distributor, Inc. became the general distributor and principal underwriter for each series of the Trust.

An investment in the funds is subject to investment risk, including the possible loss of principal amount invested. Fund returns may not match the return of their respective Index, known as non-correlation risk, due to operating expenses incurred by the funds. The alternative weighting approach employed by the each Fund (i.e., using revenues as a weighting measure), while designed to enhance potential returns, may not produce the desired results. Because each fund is rebalanced quarterly, portfolio turnover may exceed 100%. The greater the portfolio turnover, the greater the transaction costs, which could have an adverse effect on Fund performance. The risks associated with each specific fund are detailed in the prospectus and could include factors such as increased volatility risk, small and medium capitalization stock risk, concentration risk, non-diversification risk, financials sector risk, American Depositary Receipt risk, currency exchange risk, foreign market risk, growth style investing risk, portfolio turnover risk, and/or special risks of exchange-traded funds.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price” or “MP”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading when the fund’s NAV is calculated at market close. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.) Returns less than one year are cumulative.

STANDARD & POOR'S and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("S&P") and have been licensed for use by VTL Associates, LLC, Fund Advisor. No financial product offered by VTL Associates, LLC, Fund Advisor or its affiliates is sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in such products.