Glossary

Average Market Cap

The average market capitalization of a portfolio based on the total market capitalization of its underlying securities.  The average is impacted based on how the portfolio weights the underlying securities.

Beta

The measure of the Fund's relative volatility as compared to a given broad based index. A beta above 1 is more volatile, while a beta below 1 is less volatile.

Beta Strategies

A broad and rapidly growing category of benchmarks and the investment products that track them. The common thread among them is that they seek to either improve their return profile or alter their risk profile relative to more-traditional market benchmarks. The blending of active and passive approaches.

Bubble

An economic cycle characterized by rapid expansion followed by a contraction. A surge in equity prices, often more than warranted by the fundamentals and usually in a particular sector, followed by a drastic drop in prices as a massive selloff occurs. A theory that security prices rise above their true value and will continue to do so until prices go into freefall and the bubble bursts.

Correction

A reverse movement of at least 10% of a stock price (Investopedia).

Dividend Yield

Dividends per share divided by the company’s price per share.

ETF

Exchange traded fund. It is an investment fund whose shares are traded on stock exchanges. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day.

Fixed Income Investments

Refers to any type of investment under which the borrower/issuer is obliged to make payments of a fixed amount on a fixed schedule.

Floating Rate Loans

Also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument.

Fundamental Index

An index in which stocks are weighted by economic fundamental factors, such as accounting figures, such as sales, earnings, cash flow, revenue, etc.

High Yield Bonds

A high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds.

Liquidity

The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. Assets that can be easily bought or sold are known as liquid assets. The ability to convert an asset to cash quickly. Also known as "marketability."

Market Capitalization

Market Capitalization is calculated by taking the total outstanding shares of a company times its current trading price.

Per Share Net Asset Value

An expression for net asset value that represents a fund's (mutual, exchange-traded, and closed-end) or a company's value per share. It is calculated by dividing the total net asset value of the fund or company by the number of shares outstanding.

Price to Book Ratio

The ratio of a stock's latest closing price divided by its book value per share.  Book value is the total assets of a company minus total liabilities. 

Price to Earnings Ratio

The value of a company's stock price relative to company earnings.

Prospectus

A disclosure document that describes a financial security for potential buyers.

Return Drag

A negative effect when a portfolio's tracking error deviates too far from its benchmark index.  In addition, return drag can be caused by the negative effects from transaction costs of a portfolio

Return on Equity (ROE)

The rate of investment return a company earns on shareholders' equity.   An indicator of profitability; ROE is determined by dividing net income from the past 12 months by shareholders' equity.

Revenue-Weighted Index

A type of fundamentally weighted index weighted by revenue (not market capitalization).

Secular Bull Market

A secular market trend is a long-term trend that lasts 5 to 25 years and consists of a series of primary trends. A secular bear market consists of smaller bull markets and larger bear markets; a secular bull market consists of larger bull markets and smaller bear markets.

Sharpe Ratio

A measure of the risk-adjusted return of an investment.  A ratio developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance. The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 10-year U.S. Treasury bond - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns.  The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk.

Smart Beta

An investment strategy using an alternative weighting mechanism instead of a traditional market capitalization based index. Typically smart beta uses fundamentals or market inefficiences to weight an index. 

Standard Deviation

Indicates the volatility of a fund's total return.  In general, the higher the standard deviation, the greater the volatility of return.

Yields

The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

Average Daily Volume

(ADV) This is determined by the number of shares traded per day, averaged over a defined period of time, typically one year.

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.