Many small-cap stocks are priced on the basis of their expected growth potential in the future—and not necessarily by their current economic reality. As a result, market-cap-weighted indices may not provide optimal exposure to small-cap stocks.

In weighting its portfolio by revenue rather than market capitalization, Oppenheimer Small Cap Revenue ETF removes a potential bias towards overvalued stocks. Instead, it firmly grounds its focus on companies generating real economic activity.

The Fund’s initial investment universe is the S&P SmallCap 600 Index, which comprises stocks that have undergone S&P’s rigorous selection criteria and has historically outperformed the Russell 2000 Index with less risk.

Explore more in our Small Cap Revenue ETF infographic.

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