OppenheimerFunds launches two ESG-focused revenue-weighted ETFs

By Marisa Wong

Morgantown, W.Va., Oct. 31 – OppenheimerFunds announced it launched two new exchange-traded funds with an environmental, social and governance focus: the Oppenheimer ESG Revenue exchange-traded fund, which focuses on U.S. large-cap equities with highly rated ESG practices, and the Oppenheimer Global ESG Revenue exchange-traded fund, which focuses on global large- and mid-cap equities with highly rated ESG practices.

To evaluate companies for their ESG standards, OppenheimerFunds partnered with Sustainalytics, a research firm that specializes in ESG research and analysis, and MSCI ESG Ratings, a group within MSCI specializing in ESG research and analysis.

The securities in both funds are weighted by top-line revenue, which OppenheimerFunds views as a more accurate measure of a company’s value than market capitalization, according to a press release.

The Oppenheimer ESG Revenue ETF seeks to outperform the S&P 500 index through a portfolio of revenue-weighted U.S. large-cap companies with favorable ESG practices, based on Sustainalytics’ proprietary ESG scores and OppenheimerFunds’ proprietary revenue-weighting methodology.

The Oppenheimer Global ESG Revenue ETF seeks to outperform the MSCI All Country World index through a portfolio of revenue-weighted global large- and mid-cap equities companies with strong ESG practices and ranked by their Sharpe ratio, or how much return they have generated per unit of measurable risk.

“Clients are increasingly seeking access to efficient global equity exposure and companies with strong ESG practices,” John McDonough, head of distribution, said in the release.

“Our ESG Revenue ETFs can offer investors a unique combination of benefits including exposure to great companies with exceptional business practices, an investment experience with attractive risk-reward characteristics, as well as alignment to their financial goals and personal values.”

Oppenheimer funds are distributed by New York-based OppenheimerFunds Distributor, Inc.

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