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 Sustainalytics’ ESG scores as well as a revenue-weighted methodology to invest in stocks in the S&P 500® Index.
The Oppenheimer ESG Revenue ETF℠ is composed of stocks in S&P 500® Index, that rank in the top 50th percentile of Environmental, Social, and Corporate Governance (“ESG”) scores. Each security is weighted by top line revenue, instead of market capitalization, and the portfolio is re-balanced quarterly.
The strategy seeks to outperform the S&P 500® Index through a portfolio of revenue-weighted U.S. large cap names with favorable ESG practices, based on Sustainalytics’ proprietary ESG scores and the OFI Revenue Weighted Strategy team’s proprietary revenue-weighting methodology. We believe this approach is a durable value proposition as it aims to provide investors with exposure to large cap U.S. companies with strong ESG practices.
The Oppenheimer ESG Revenue ETF℠ employs a three-step process to determine what stocks will be included in the portfolio and their individual portfolio weights.
Frank Vallario is a Portfolio Manager on OppenheimerFunds’ Beta Solutions business. He joined the Firm from Columbia Threadneedle, 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.