Int’l Dividend Revenue ETFs Debut

August 09, 2018

Today OppenheimerFunds launched a pair of ETFs: the Oppenheimer Emerging Markets Ultra Dividend Revenue ETF (REDV) and the Oppenheimer International Ultra Dividend Revenue ETF (RIDV)

REDV comes with an expense ratio of 0.46%, while RIDV costs 0.42%. Both funds list on the NYSE Arca exchange.

REDV tracks an index derived from the FTSE Emerging Index. The methodology selects the 100 stocks in the parent index with the highest one-year trailing dividend yields over the prior two year and reweights them based on revenues. Individual companies are limited to 5% of the index, with single countries kept to within 10% of their weightings in the parent index.

RIDV’s index methodology is a little more complex. The fund’s benchmark is derived from the FTSE Developed ex US Index and first excludes the top 5% of securities by yield from each country, then excludes the top 5% of securities based on dividend payout ratio from each sector.

From there, the methodology selects the top 200 securities based on one-year trailing dividends, reweighting them based on revenue. Finally, it applies the same weighting constraints as REDV’s index regarding individual companies and countries.

The two launches bring the total number of ETFs offered by OppenheimerFunds to 20.

Contact Heather Bell at [email protected]

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