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

Oppenheimer ESG Revenue ETF:

  • Starts with the U.S. large-cap stocks that are represented in the S&P 500 Index.
  • Invests only in companies that rank in the top half of ESG scores, as determined by Sustainalytics, an award-winning global research firm that specializes in ESG research and analysis.
  • Excludes any company embroiled in a major ESG controversy.

This screening generally results in a portfolio of about 230 U.S. large-cap 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 potential 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 delivering potentially 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 investing without sacrificing the performance they may need to pursue their long-term financial goals.