ETF Basics

What is an ETF?

An Exchange Traded Fund (ETFs) is a mutual fund but with a very distinct and potentially beneficial twist. ETFs are investment funds (collection of securities), but unlike mutual funds they trade like an individual stock on an exchange.
ETFs experience price changes throughout the day as they are bought and sold, just like an individual stock. ETFs give the investor the flexibility of a stock, but the diversity, simplicity and low cost of an index fund.

These innovative investment tools can be used as a key component in your investment portfolio. Each ETF share enables investors to hold a portion of all the 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.

OppenheimerFunds takes the innovation of the ETF one step further.  Instead of just tracking an index or a cross section of an index, OppenheimerFunds adjusts, with the goal of enhancement, how the companies of an index are weighted.  Each of the OppenheimerFunds Revenue Weighted Strategy ETFs is uses known indices but the shares weighted based on revenue, instead of market capitalization.  For more information on our proprietary process, click here to read about OppenheimerFunds' insight on investing.

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.