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Not for Use with Retail Investors

OppenheimerFunds is not undertaking to provide impartial investment advice or to provide advice in a fiduciary capacity.

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Sources: FTSE Russell, Morningstar Direct as of  8/31/18. Past performance does not guarantee future results. The returns of the OFI 1000 & 2000 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. 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  8/31/18. 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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Source: Bloomberg Finance, L.P., as of 8/31/18. Single factor characteristics represented by the respective Russell 1000 Single Factor Indices.

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Sources: FTSE Russell, Morningstar Direct as of  8/31/18. 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. 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  August 31, 2018. Momentum, size, value, quality, low volatility, and dynamic represented by OMOM, OSIZ, OVLU, OQAL, OVOL, and OMFL. Results generated using the US Equity Fundamental Model.

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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.

U.S. investors continued to see positive equity returns as August pushed the current bull market’s longevity into record territory. Despite this, the global markets continued to be fragmented, with Europe, Japan, and emerging markets all finishing in the red. Emerging markets saw an especially sharp sell-off as local currency depreciation shook investor sentiment. As a result, our market sentiment indicator decelerated, suggesting weakening global risk appetite, confirming the continuation of a “slowdown” regime.

Factor Performance

The momentum factor stuttered in July, but regained the top spot, outpacing the market on its way to posting August’s best return. Overall, August was a strong month for the year-to-date winners as the quality factor also posted strong results relative to the index. Both factors now sit more than 200 basis points above the market for the year.

Speaking of winners, the size factor outpaced the index for the month as the current trade war environment once again rewarded smaller companies. This carried over into small-caps, with the Russell 2000 outpacing the Russell 1000 for the fifth time out of the last six months.

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.