Investors now have a way to globally invest in companies with strong ESG practices without sacrificing their need to realize solid returns.

Oppenheimer Global ESG Revenue ETF:

  • Starts with the companies that are in the MSCIACWI (All Country World Index).
  • Invests only in companies that rank in the top half of ESG scores, as determined by MSCIESG Research, Inc., which specializes in ESG research and analysis.
  • Further refines the portfolio by selecting only those companies whose trailing 12-month Sharpe ratios (a measure of risk-adjusted returns) rank in the top half.

This screening generally results in a portfolio of about 660 global companies with strong ESG practices.

The Fund also employs the proprietary revenue-weighting methodology developed by OppenheimerFunds’ Revenue Weighted Strategy Team. While most passive indices are weighted by stocks’ market capitalization, the advantages of employing a Smart Beta strategy that weights by companies’ revenues are:

  • Avoiding overexposure to trendy, overpriced stocks.
  • Having favorable exposure to the factors academic researchers have demonstrated drive stock returns―such as company size and value, with smaller-sized companies and those whose stocks are available at inexpensive prices that may deliver better long-term returns.
  • Gaining broad exposure to the market, given that revenue-weighting itself won’t exclude any companies because almost every company generates sales.

Overall, the Fund can enable investors to bring their values to global investing without sacrificing the performance they may need to pursue their long-term financial goals.