Portfolio Construction

Portfolio Construction

As you create or develop your portfolio, ETFs can help you grow and diversify your portfolio.  There are many different approaches to constructing an equity portfolio, but most investors share a common objective: assemble a diversified collection of investments positioned to produce the greatest potential returns while minimizing volatility.
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ETFs offer broad diversification giving an investor exposure to a large number of companies in one vehicle. The reduced numbers of stocks will lower your brokerage transaction fees simply because you will have fewer stocks to trade, since one ETF can cover such a large number of individual stocks.  The broad index an ETF may also decrease your portfolio's volatility due to the diversification within the ETF itself.
When managing your portfolio you need to consider the tax consequences of the investments.  ETFs offer one of the most tax efficient investment vehicles available.  
The purchase of individual stocks affords investors the potential for greater returns but also exposes them to stock selection bias as well as increased risk and volatility. As a result, more investors are using indexed ETFs as core components of their portfolios.
By investing in a fund that tracks an index, investors are able to gain broad exposure to an entire market or target a specific cross-section of a market.

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.