Written by David Fabian, May 16th, 2017
It’s become difficult to distinguish the efficacy of various index weighting strategies that pervade the ETF universe. Some work best during specific market cycles or are designed to take advantage of distinguishable trends. Others are tailor-made for the long-term with the broad diversification, reasonable costs, and sensible philosophy that investors can identify with.
It’s these latter characteristics that best describe the revenue-weighted index methodology that is delivered by a select group of Oppenheimer funds. The Oppenheimer Large Cap Revenue ETF (RWL) is a fund that was born during the nascent months of the great financial crisis and has risen from those dark times with an impressive track record.
Written by David Fabian, February 05th, 2016
State Street has had a tremendous advantage in the exchange-traded fund world by being the first issuer of dedicated sector funds. Their highly successful SPDR sector series debuted in 1998 and has spent nearly two decades building a world-class reputation. Everyone from professional to novice investors respect SPDR ETFs for their liquidity, transparency, low-costs, and tax efficiency. Read more
Written by David Fabian, October 17th, 2015
The PowerShares QQQ (QQQ) is based on the NASDAQ-100 Index, which measures the 100 largest non-financial stocks currently trading on the NASDAQ exchange. Whether by design or practical experience, this index and its affiliated ETF have always been associated with the technology sector. Read more
Written by David Fabian, September 22nd, 2015
Typical benchmarks such as the iShares S&P 500 ETF (IVV) contain a blend of both growth and value companies that are based on characteristics of the companies that comprise the index. A blended mix can create better overall diversification for most ETF investors, yet may not serve the needs of those that are looking to incorporate a specific style or avoid certain sectors.
To address this need, the iShares S&P 500 Growth ETF (IVE) and iShares S&P 500 Value ETF (IVW) contain large-cap companies within the bellwether index that have been designated with a growth or value style. Not surprisingly, the growth index is chocked full of technology, health care and consumer discretionary names. Conversely, the value ETF is loaded with financial, industrial, and energy companies.
Read the full article at NASDAQ.com
Written by David Fabian, July 14th, 2015
Equal weight exchange-traded funds are one of the oldest and most easily understood of all the smart beta strategies. Simply put, these indexes allocate an equal portion of the underlying assets to each of the designated holdings. While that may not seem like an important distinction, it can have a tremendous impact on the overall portfolio construction, performance, fees, and risk of a particular group of stocks.
Read the complete article at NASDAQ.com