RevenueShares Tries A Different ETF Strategy (RWL, RWK, RWJ, RWW, RTR, RVW, SPY, IVV)

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August 3, 2009 9:48am ETF BASIC NEWS NYSE:IVV

revenueshares“RevenueShares applies a revenue-weighting strategy to traditionally cap-weighted indexes. By allocating assets by revenue, this firm seeks to “reduce the erosion of investor returns created by cap-weighting’s tendency to overweight outlier firms in the index


 whose stock prices have been elevated to levels beyond the company’s actual growth rate and also the tendency of cap-weighted indexes to underweight stocks that are experiencing cyclical setbacks.”  RevenueShares currently has six ETF products: RevenueShares Large Cap Fund (RWL Quote), RevenueShares Mid Cap Fund (RWK Quote), RevenueShares Small Cap Fund (RWJ Quote), RevenueShares Financial Sector Fund(RWW Quote), RevenueShares ADR Fund (RTR Quote) and RevenueShares Navellier Overall A-100 Fund (RVW Quote). The “core index” ETFs of RWL, RWK and RWJ are rebalanced annually while the specialty indexes are rebalanced quarterly,” Don Dion Reports From The Street.

“Unlike WisdomTree or RAFI — which have created branded indexes — RevenueShares seeks to apply its revenue-weighting mechanism to known indexes. Like the well-known State Street Global Advisors SPDRs ETFs, RevenueShares has filed for all of the S&P industry sectors. RWL, for example, applies the revenue strategy to the same index that SPDR S&P (SPY Quote) and iShares S&P 500 Index (IVV Quote) track,”  Dion Reports.

“RevenueShares has taken a measured approach to launching its ETF product line, not wanting to flood the market with funds. “We will only release ETFs one by one as the market demands them. The last thing we want to do is flood the market with ETFs that don’t receive interest and trading volume from advisors, and thus fail,” said Paul Weisbruch of RevenueShares. RevenueShares’ familiar indexes and revenue approach make these funds appropriate for longer-term investors. Rather than tracking an extremely focused portion of the market, or resetting on a daily basis, RevenueShares’ products are designed as a cheaper alternative to popular mutual funds,”  Dion Reports.

Full Story: HERE

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