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.
Frank Vallario is a Portfolio Manager on OppenheimerFunds’ Beta Solutions business. He joined the Firm from ColumbiaThreadneedle, where he oversaw the portfolio management of 12 listed ETFs representing developed, emerging and frontier markets. He also held roles at MSCI, HCM, American Independence Financial Services and UBS Global Asset Management.
Sean is a Portfolio Manager on OppenheimerFunds’ Beta Solutions business. Prior to this role, Sean joined VTL Associates in June 2009 as an investment Analyst and analyzed clients’ asset allocation strategies. He also researched asset managers across all asset classes and assisted with creating investment performance reports.