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Not for Use with Retail Investors

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Sources: FTSE Russell, Morningstar Direct as of  10/31/18. Past performance does not guarantee future results. The returns of the Russell 1000 & 2000 OFI Dynamic Indices prior to 11/8/17 represent hypothetical pre-inception index performance (PIP) to illustrate how the index may have performed had it been in existence for the time period prior to 11/8/17. The inception date of the index is 11/8/17. PIP data results are based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk that may affect the actual performance of the ETF. Actual performance of the ETF may vary significantly from the PIP data. The inception date of the ETF is 11/8/17, thus, the first full month of returns began 12/1/17. The management fee for the Oppenheimer Russell 1000 Dynamic Multifactor ETF is 0.29% and the Oppenheimer Russell 2000 Dynamic Multifactor ETF is 0.39%. The OFI 1000 & 2000 Dynamic Indices "net" represents the index returns net of the management fee. The returns of the Russell Single Factor Indices prior to 9/30/15 represent hypothetical pre-inception index performance (PIP) to illustrate how the index may have performed had it been in existence for the time period prior to 9/30/15. The inception date of the index is 9/30/15. PIP data results are based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk that may affect the actual performance of the ETF. A description of the methodology is available upon request. Actual performance of the ETF may vary significantly from the PIP data. The inception date of the ETF is 11/8/17, thus, the first full month of returns began 12/1/17. The management fee for the single factor ETFs are 0.19%. The Russell Single Factor Indices "net" represents the index returns net of the management fee.

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Sources: FTSE Russell, Morningstar Direct as of  10/31/18. Past performance does not guarantee future results. The returns of the Russell 1000 & 2000 OFI Dynamic Indices prior to 11/8/17 represent hypothetical pre-inception index performance (PIP) to illustrate how the index may have performed had it been in existence for the time period prior to 11/8/17. The inception date of the index is 11/8/17. PIP data results are based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk that may affect the actual performance of the ETF. Actual performance of the ETF may vary significantly from the PIP data. The inception date of the ETF is 11/8/17, thus, the first full month of returns began 12/1/17. The management fee for the Oppenheimer Russell 1000 Dynamic Multifactor ETF is 0.29% and the Oppenheimer Russell 2000 Dynamic Multifactor ETF is 0.39%. The OFI 1000 & 2000 Dynamic Indices "net" represents the index returns net of the management fee. The returns of the Russell Single Factor Indices prior to 9/30/15 represent hypothetical pre-inception index performance (PIP) to illustrate how the index may have performed had it been in existence for the time period prior to 9/30/15. The inception date of the index is 9/30/15. PIP data results are based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk that may affect the actual performance of the ETF. A description of the methodology is available upon request. Actual performance of the ETF may vary significantly from the PIP data. The inception date of the ETF is 11/8/17, thus, the first full month of returns began 12/1/17. The management fee for the single factor ETFs are 0.19%. The Russell Single Factor Indices "net" represents the index returns net of the management fee.

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Sources: FTSE Russell, Morningstar Direct as of  10/31/18. Past performance does not guarantee future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets.

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Sources: FTSE Russell, Morningstar Direct as of  10/31/18. Past performance does not guarantee future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets. Certain returns shown may reflect backtested performance. All performance presented of the factor indices prior to the index inception date (September 30, 2015) is backtested performance. A description of the methodology is available upon request Excess returns are calculated using the Russell 1000 TR Index as the benchmark. Factors are represented by the corresponding Russell 1000 Single Factor Indices.

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Source: Bloomberg Finance, L.P., as of  10/31/18

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The Oppenheimer Russell Dynamic Multifactor ETFs remain in a “slowdown” regime, resulting from a combination of still-above-trend U.S. economic activity, but decreasing global risk appetite. Our Dynamic Multifactor ETFs remain tilted toward the quality and low volatility factors.

Our leading economic indicators continue to suggest the U.S. economy should grow above trend over the next few quarters. Business and consumer confidence remain high, and activity in manufacturing and construction continues to be strong. While monetary conditions are gradually tightening, the current policy stance is not restrictive, therefore supporting further economic growth.

Despite this continuation of strong U.S. economic data, October saw investors in both developed and emerging markets favor risk-off assets. Equity markets across the United States, Europe, and Asia all finished the month lower as investors took risk off the table amid the growing uncertainty surrounding central bank policy and global growth. This still-weakening global risk appetite affirms our slowdown regime signal and, as such, we remain tilted to the low volatility and quality factors.

Factor Performance

Broadly, equities finished the month lower, but more defensive and cheaper stocks delivered excess returns above the Russell 1000 Index. Yield and low volatility stocks added nearly 3% in excess return above the market during October’s sell-off.

As investors shunned the market’s higher-valuation segments, the value factor managed to deliver its highest monthly excess return (+1.43%) since the 2016 election, when the factor outpaced the Russell 1000 index by 3.30%.

Despite quality underperforming during the month, our bottom-up combination once again proved effective, with both multifactor strategies outperforming their respective market indices. The small-cap strategy worked particularly well, delivering 3.78% in excess return during October.

Our Multi-Asset Team will continue to monitor the economic environment and global risk sentiment for signs of regime change, which we will reflect in the potential monthly repositioning of the Dynamic Multi-Factor ETFs.

Check out the full Factor Dashboard here.