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INDEXES

New Oppenheimer US Revenue Model Portfolio Now on the DWA Research Platform

We are excited to announce the launch of our newest ETF Model, the Oppenheimer US Revenue Model. The Oppenheimer Report will update on Thursday mornings, prior to market open, and will provide you with commentary on Oppenheimer exchange traded funds, as well as the updates on the Oppenheimer US Revenue Model Portfolio.

The Oppenheimer Revenue ETF suite provides access to a unique set of index-based ETFs that utilize a weighting system that is different from traditional capitalization-weighted strategies. The Oppenheimer Revenue ETFs are "revenue weighted," which means that securities are weighted by their trailing 12-month top-line revenue, rather than their market capitalization, with a 5% maximum portfolio weight for any one issuer. The funds are rebalanced quarterly. Revenue is a metric that provides minimal exposure to accounting manipulations when compared to more popular ways of viewing a company; such as, earnings, book value, or cash flow. The focus is to capture greater exposure to value-oriented stocks, providing greater return the long term .

Model Overview

The Oppenheimer US Revenue Model seeks to provide overweight exposure to the strongest fund within Oppenheimer's inventory of four Revenue ETFs that each provide broad exposure to one of the three capitalization categories, as well as a dividend focused inventory but do so with a weighting scheme based on top line revenue rather than market capitalization. For example, the Oppenheimer Large Cap Revenue ETF RWL provides broad exposure to the S&P 500 universe, but does so by providing greater exposure to lower valuation companies than the market-cap benchmark.

The Model’s inventory consists of the following Funds:

  • The Oppenheimer Large Cap Revenue ETF (RWL)
  • The Oppenheimer Mid Cap Revenue ETF (RWK)
  • The Oppenheimer Small Cap Revenue ETF (RWJ)
  • The Oppenheimer Ultra Dividend Revenue ETF (RDIV)


Why Use the Oppenheimer US Revenue Model?

  • "Play the Piano with Both Hands" - Remember that old adage we like to use often? The Oppenheimer US Revenue Model allows you "play the piano with both hands," as the Model incorporates both fundamentals through the Oppenheimer Revenue Weighting Methodology and then a top-down Dorsey Wright Technical overlay. This way, you are able to play better music by combining the fundamentals with the technicals.
  • Combining Value & Momentum - At Dorsey Wright, we believe momentum can be used as a stand-alone investment strategy; however, combining it with other smart beta factors to which momentum is negatively correlated, such as value, has its advantages. We have referenced this in previous research pieces and blog posts, noting that it allows for a portfolio to capture alpha at different periods of the market cycle, which in turn can reduce both drawdowns and volatility.
  • Complements Traditional Core Size & Style Solutions - Over the years we have seen the demand for core equity solutions increase, and we believe that this Model can help support core equity exposure by providing a momentum tilt to value oriented exposure across large, mid, and small cap US equities.


Learn More

* Subscribers: login to learn more.

* Non-subscribers and additional questions, contact us here.

* Register here for an introductory webinar "Introducing the Oppenheimer US Revenue Model"

Neither the information within this email, nor any opinion expressed, shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products. This article does not purport to be complete description of the securities or commodities, markets or developments to which reference is made.

The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Relative Strength is a measure of price momentum based on historical price activity. Relative Strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon.

OFI Advisors has arranged with Dorsey, Wright & Associates (“DWA”) to provide a specialized Funds page on OFI Advisors sponsored products. The Point & Figure analysis, models and resulting rankings, including any information, data or commentary included herein, are created and provided solely by DWA. Such analysis, models, and rankings should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security. Unless otherwise stated, the examples presented do not take into consideration dividends, commissions, tax implications, or all potential transactions costs. Neither DWA, nor OFI Advisors themselves, through this Fund page, provide investment advice or recommendations regarding any security, fund or market. As the investment professional making the final decision with respect to allocations, including any related suitability, fiduciary or other legal obligation, please remember to adhere to all applicable laws, regulations, and rules including FINRA Rules 2090 and 2111 (Suitability), or other such similar rules and regulations. The percentage of the portfolio devoted to any Fund is at the sole discretion of the financial advisor or the customer, and not DWA or OFI Advisors. If you are not familiar with the Point & Figure methodology, we suggest you read “Point & Figure Charting, Fourth Edition” by Thomas J. Dorsey and visit the PnF University. If you are not familiar with the OFI Advisors products, we suggest you call 800-525-7040. You should consider each OFI Advisors product’s investment objectives, risks, and charges and expenses carefully before investing. Contact OFI Advisors at 800-525-7040 to obtain a prospectus, which contains this and other information about the OFI Advisors products. Read it carefully before you invest.

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