NEW YORK, July 13, 2017 – OppenheimerFunds, a leading global asset manager, is expanding its Beta Solutions product offerings with the launch of three new revenue-weighted ETFs in the emerging, global and international market segments. The firm has introduced Oppenheimer Emerging Markets Revenue ETF (REEM), Oppenheimer Global Revenue ETF (RGLB), and Oppenheimer International Revenue ETF (REFA).
“Our newest ETF solutions were created in direct response to our clients’ growing appetite for revenue-weighted strategies in the global marketplace,” said Sharon French, Head of Beta Solutions at OppenheimerFunds. “Our approach offers a durable value proposition, with attractive risk-adjusted performance and the broad market diversification that has historically attracted investors to index strategies.”
- Oppenheimer Emerging Markets Revenue ETF (REEM) seeks to outperform the MSCI Emerging Markets Index, with an expense ratio of 46 basis points.
- Oppenheimer Global Revenue ETF (RGLB) seeks to outperform the MSCI All Country World Index, with an expense ratio of 43 basis points.
- Oppenheimer International Revenue ETF (REFA) seeks to outperform the MSCI EAFE Index, with an expense ratio of 42 basis points.
The securities in each of the new funds are weighted by their trailing 12-month top-line revenue, rather than their market capitalization, with a 5% maximum portfolio weight for any one issuer. The funds are rebalanced quarterly.
Oppenheimer’s fundamentally weighted ETFs offer a way for advisors, wealth managers, and consultants to access broad market exposure in a potentially more optimal way than traditional market capitalization strategies. By weighting securities in broad market indices based on revenue rather than market capitalization, the fundamentally weighted strategies offer the opportunity to reduce overexposure to potentially overpriced sectors and stocks while still providing the broad diversification of an index.
"As we continue to build out our smart beta business, we’re pleased to offer new International and Global ETF products that complement our long history of global investing and allow our clients a new way to access the international markets," said Art Steinmetz, Chairman and CEO, OppenheimerFunds.
The new offerings build on the firm’s existing suite of Oppenheimer Revenue Weighted ETFs, which include solutions in the environmental, social and governance (ESG) space, and also broaden the firm’s overall investment platform, which includes actively managed equity, fixed-income, alternative and multi-asset solutions. In 2016, the firm reduced the contractual management fees for five of its Revenue Weighted ETFs. The full suite of Oppenheimer Revenue Weighted ETFs now includes:
- NEW: Oppenheimer Emerging Markets Revenue ETF (REEM)
- NEW: Oppenheimer Global Revenue ETF (RGLB)
- NEW: Oppenheimer International Revenue ETF (REFA)
- Oppenheimer Large Cap Revenue ETF – RWL
- Oppenheimer Mid Cap Revenue ETF – RWK
- Oppenheimer Small Cap Revenue ETF – RWJ
- Oppenheimer Ultra Dividend Revenue ETF – RDIV
- Oppenheimer Financials Sector Revenue ETF – RWW
- Oppenheimer ESG Revenue ETF – ESGL
- Oppenheimer Global ESG Revenue ETF – ESGF
Over the past year, OppenheimerFunds has steadily grown its Beta Solutions team to support the growth of the business, adding David Mazza as Head of ETF Investment Strategy, Alex Depetris as Chief Operating Officer of Beta Solutions, Mo Haghbin, Head of Product, Beta Solutions, and Michael Eschmann as Head of Capital Markets for Beta Solutions. Vince Lowry is Lead Portfolio Manager of OppenheimerFunds’ Revenue Weighted offerings.