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Not for Use with Retail Investors

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Sources: FTSE Russell, Morningstar Direct as of  12/31/18. 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 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 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  12/31/18. 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 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 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  12/31/18. 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  12/31/18. 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 12/31/18. Single factor characteristics represented by the respective Russell 1000 Single Factor Indices.

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Oppenheimer Russell Dynamic Multifactor ETFs have moved into 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 now 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. Business and consumer confidence remain high. Manufacturing activity remains strong, while construction shows signs of deceleration. Monetary conditions continue to tighten, and the current policy stance is now close to neutral. This environment is still indicative of above-trend growth in the medium term.

We witnessed a meaningful uptrend in risk appetite during November, but the trend did not hold as December saw global risk appetite decelerate substantially and fall below its medium-term trend. Globally, equity markets sold off, and high-yield spreads widened as investors moved into risk-off assets during the period. This deceleration led to our signal switching from expansion to slowdown.

Factor Performance

The quality, yield, and low volatility factors all outperformed the broad market during a volatile December.  Many factor investors are likely to find this unsurprising given these three factors are historically the most defensive.

After minimal market volatility in 2017, investors in the low volatility factor were rewarded with 216 basis points of outperformance over the prior year – the first year of above-market returns since 2015.

Despite the expansion regime underperforming in December, both multifactor strategies outperformed their respective market cap indices for the year, highlighting the merits of diversifying through a dynamic multifactor strategy. Additionally, the Russell 1000 multifactor index outpaced all individual single factors, showing how a bottom-up strategy can add value through factor interaction.

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.