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Revenue Weighting

Offers Advantages to Market-Cap Weighting

Revenue-weighted strategies offer three main advantages over traditional market-cap-weighted strategies.

  1. Broad market coverage with greater exposure to attractively valued companies

    Revenue weighting offers diversified equity market exposure but, by weighting companies based on their revenue, rather than their stock price, it increases the strategy’s exposure to attractively valued stocks compared to a market-cap-weighted index.

  2. Anchored by fundamentals, not investor sentiment

    Disciplined quarterly rebalancing toward companies with lower valuations mitigates concentrations in stocks that may be overpriced. It also helps maintain consistent sector exposures.

  3. Strong historical long-term outperformance

    Each U.S. core equity revenue weighted strategy has outperformed its respective Morningstar category benchmark over a 10-year period.

Revenue-Weighted Products

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Insights: Revenue-Weighting

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