Oppenheimer, the exchange traded funds issuer behind an extensive lineup of revenue-weighted funds, added to that stable Thursday with the debuts of two international dividend products.
The Oppenheimer International Ultra Dividend Revenue ETF RIDV and the Oppenheimer Emerging Markets Ultra Dividend Revenue ETF REDV are the issuer's newest funds.
The idea of building an index where the components are weighted by top-line revenue, not market value, isn't new. In fact, long-running historical data prove the validity of the concept, at least with domestic equities.
Revenue weighting is the methodology that serves as the backstop for popular Oppenheimer ETFs, including the Oppenheimer Ultra Dividend Revenue ETF RDIV, Oppenheimer Emerging Markets ETF REEM, Oppenheimer ESG Revenue ETF ESGL, and Oppenheimer Global ESG Revenue ETF ESGF, among others.
Weighting stocks by revenue can help reduce exposure to richly valued names while offering the potential to outperform dedicated growth and value funds.
Why It's Important
The Oppenheimer International Ultra Dividend Revenue ETF follows the FTSE Custom Developed ex US Ultra Div Rev Net Index, a collection of the highest-yielding stocks from the widely followed FTSE Developed Ex US Index. That new ETF holds 200 stocks.
RIDV is significantly overweight the U.K., France and Germany relative to the FTSE Developed Ex US Index. The new ETF devotes a combined 52.8 percent of its weight to those countries compared to just over 33 percent in the FTSE Developed Ex US Index.
The new ETF is top-heavy at the sector level with financial services and energy combing for two-thirds of the fund's weight. RIDV charges 0.42 percent per year, or $42 on a $10,000 investment.
The Oppenheimer Emerging Markets Ultra Dividend Revenue ETF follows the FTSE Custom Emerging Ultra Dividend Revenue Net Index, an offshoot of the popular FTSE Emerging Markets Index. REDV holds 101 stocks.
China and Russia are the new ETF's top two country exposures, combing for 37.4 percent. Russia represents 14.4 percent of REDV's weight compared to just 4 percent in the FTSE Emerging Markets Index.
Utilities and financial services stocks combine for half of REDV's sector weight. The new ETF has an annual fee of 0.46 percent.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.