ESG Revenue-Weighted Strategy ETFs
ESG in Focus Series: Understanding the Opportunity
Environmental, social and governance investing is enjoying significant growth. Here’s why.
June 28, 2017
An ESG revenue-weighted strategy that employs MSCI’s proprietary ESG scoring methodology and a revenue-weighted methodology to invest in global stocks represented in the MSCI ACWI.
Oppenheimer Global ESG Revenue ETF℠ is composed of stocks in the MSCI ACWI (All Country World Index), which rank in the top half of ESG scores, and within that group, are also in the top half of a Sharpe ratio screen. Each security is weighted by top line revenue instead of market capitalization, and the portfolio is rebalanced quarterly.
The strategy seeks to outperform the MSCI ACWI Index through a portfolio of revenue-weighted global all-cap names with strong Environmental, Social, and Corporate Governance (“ESG”) practices, as determined by MSCI’s proprietary ESG scores and the OFI Revenue Factor team’s proprietary revenue-weighting methodology. We believe this to be a durable value proposition as it aims to provide investors with exposure to stocks across the globe with strong ESG practices.
Oppenheimer Global ESG Revenue ETF℠ employs a four-step process.
Vince Lowry is the Lead Portfolio Manager for the Revenue Weighted Strategy Team. He was the founder and architect behind the creation of RevenueShares ETFs, acquired by OppenheimerFunds in 2015. Vince served as RevenueShares CEO & Chairman. Prior to starting RevenueShares he was a Managing Director at Smith Barney, a division of Citigroup Global Markets Inc. His early career began in the Philadelphia Police Department as a Detective Sergeant.
Justin serves as a portfolio manager and Vice President, Director of Research for the Oppenheimer Revenue Weighted Strategy Team. This includes the creation and development of new products, research for the development of economic white papers, creation of performance/risk measurement reports, asset attribution analysis, asset allocation analysis, and style analysis for distribution by the sales force.
Sean is a portfolio manager for the Oppenheimer Revenue Weighted Strategy Team. He is responsible for all trading, as well as the cash and tax management for the Funds. Sean also works closely with the product research team to develop new strategies. Sean joined VTL Associates in June 2009, and has been instrumental in the launches of more than ten ETFs across several asset classes.