The ETF Industry

ETF History

Exchange Traded Funds were first launched in 1992. At first, ETFs were marketed mostly to institutional investors to facilitate sophisticated trading strategies such as hedging. ETFs surge in popularity among individual investors is largely due to their transparency, liquidity, and ax efficiency.
ETFs are a collection of securities that trade like an individual stock on an exchange. These innovative investment tools can be used as a key component of your investment portfolio. Each ETF share enables investors to hold a portion of all securities in an index. Because ETFs can be traded throughout the day and are suitable for many kinds of investors, they have become one of the investment industry's fastest-growing products.
The advent of ETFs has substantially improved investors’ ability to construct global portfolios utilizing the structural efficiency of ETFs.

 

OppenheimerFunds' Intelligent Twist on the ETF

OppenheimerFunds takes the innovation of the ETF one step further. Instead of just tracking an index or optimizing a cross section of an index, OppenheimerFunds implemented a rules-based fundamental approach to its products. Each of the Oppenheimer Revenue Weighted Strategy ETFs is pulled from known indices but the shares are proportioned based on annual revenue not market capitalization. For more information on our proprietary process, click here to read about OppenheimerFunds' unique perspective on market investing.

 

Volume and Liquidity

The liquidity of an ETF is determined by the liquidity of the underlying basket of securities, not the average trading volume of the ETF. ETFs typically track an index. For example, the Oppenheimer Large Cap Revenue ETF (RWL) is made up of all the same securities as the S&P 500® but is weighted by revenue instead of market capitalization.
Standard and Poor's® indices are made up of the most highly liquid securities in today's market. The liquidity of the Oppenheimer Large Cap Revenue ETF is based on the liquidity of the 500 securities in the basket, not the trading volume of the fund.

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.