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Portfolio > ETFs

New ETFs Weighted on Revenue, Not Market Cap

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RevenueShares Investor Services of Paoli, Pa., has listed its series of RevenueShares ETFs on the New York Stock Exchange ARCA. RevenueShares ETFs, in a licensing arrangement with Standard & Poor’s, has three index ETFs ranked by top-line revenue rather than market capitalization. No other ETFs currently focus exclusively on revenue as the sole means of weighting S&P index models, the company says.

The ETFs trade under the following ticker symbols:o RevenueShares Large Cap Fund (RWL)o RevenueShares Mid Cap Fund (RWK)o RevenueShares Small Cap Fund (RWJ)

On February 29, all three were trading near 49.

“For investors using an S&P Index as a benchmark, RevenueShares ETFs deliver the benefits of a passively managed index investment with the upside potential of weighting the S&P Indexes by revenue,” explains RevenueShares President Sean O’Hara. “Back-testing performed by S&P has indicated that a revenue-weighted ranking has historically provided significantly better long term returns versus traditional cap-weighted indexes.”

RevenueShares ETFs will hold the same securities as their corresponding S&P Index, while maintaining all the benefits of traditional indexing, broad market exposure, transparency and low cost. O’Hara says that these new offerings can counterbalance cap-weighted index investments that naturally overweight stocks that have run up and sell stocks whose share prices have gone down, running counter to the “buy low, sell high” conventional wisdom.The Bank of New York is serving as the ETFs’ administrator, custodian and transfer agent, while Foreside Fund Services will serve as the funds’ distributor. The investment advisor for the ETF offerings will be VTL Associates.For more information, see www.RevenueSharesETFs.com.


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