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Not for Use with Retail Investors

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Sources: FTSE Russell, Morningstar Direct as of  4/30/19. Past performance does not guarantee future results. The returns of the Russell 1000 & 2000 OFI Dynamic Indices prior to 10/13/17 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 10/13/17. The inception date of the index is 10/13/17. 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 Oppenheimer Russell 1000 Dynamic Multifactor ETF is 0.29% and 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 6/30/15 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 6/30/15. The inception date of the index is 6/30/15. 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  4/30/19. Past performance does not guarantee future results. The returns of the Russell 1000 & 2000 OFI Dynamic Indices prior to 10/13/17 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 10/13/17. The inception date of the index is 10/13/17. 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 Oppenheimer Russell 1000 Dynamic Multifactor ETF is 0.29% and 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 6/30/15 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 6/30/15. The inception date of the index is 6/30/15. 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: Morningstar, FactSet as of  4/30/19. 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  4/30/19. 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 (June 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 4/30/19. Single factor characteristics represented by the respective Russell 1000 Single Factor Indices.

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

Our leading economic indicators continue to suggest that the U.S. economy should grow above trend over the next few quarters. Recent headline GDP readings have come in above estimates and consumer confidence remains strong. However, recent business surveys continue to register a deceleration in manufacturing activity. Monetary conditions, as indicated by the yield curve, continue to imply a future slowdown in growth. Overall, the economic environment is still indicative of above-trend growth in the medium term.

While many equity markets around the world registered positive returns over the period, U.S. indices once again outpaced most international peers. Fixed income markets saw a similar dichotomy with developed and emerging market indices lagging their U.S. counterparts. Overall, global risk appetite did not rise enough to break through its medium-term trend, and thus we are still registering a deceleration in global market sentiment. This deceleration, combined with current above-trend economic indicators, confirms the identification of a slowdown regime.

Factor Performance

April saw all individual single factors underperform the broad market. Factor investors might be feeling a sense of déjà vu given the last time we observed this was in April 2018.

Year to date, the size factor remains at the top of the factor rankings, and is the only single-factor strategy outperforming the market. Size has been able to hang on to the strong lead generated in January, when equities rebounded sharply from the Q4 selloff. The size factor may simply be exhibiting a classic mean reversion trade, as the current rebound has benefitted those equities that saw the deepest drawdowns to finish 2018. 

The slowdown regime recorded mixed results across the two multifactor strategies. The combination of low volatility and quality lagged in large caps, but led to modest outperformance in small caps over the 1-month period.

Check out the full Factor Dashboard here.