RevenueShares / Navellier ETF Takes Innovative Stance

Mar.13.09 | About: RevenueShares Navellier (RWV)

At the end of January, RevenueShares launched an ETF based on the niche area of revenue weighting. How have challenged markets affected the innovative fund?

The RevenueShares Navellier Overall A-100 Fund (NYSEARCA:RWV) was created in order to identify an index, rank its constituents by company revenue and rebalance once a year, with the goal of providing a higher return over time than the index would normally do by itself. The fund is constructed using an eight-factor model to give stocks a letter grade. From there, the top 100 A-rated stocks are included and ranked by revenue annually on Sept. 1, and rebalanced on the first day of each calendar quarter.

RMV has an expense ratio of 0.65% with holdings in 100 securities. Its top holdings include: Wal-Mart, 7.72%; Home Depot, 6.83%; Lowe’s Co., 5.33%; Astrazeneca PLC ADR, 4.42%; Accenture LTD, 4.14%; McDonald’s Corp., 4.02%; World Fuel Services Corp, 3.05%; General Mills Inc, 2.75%; AMGEN Incorp, 2.62%; BJ’s Wholesale Club Inc, 1.92%.

The top three holdings:

  • Wal-Mart (NYSE:WMT) is up 2.0% in the last month and down 11.5% in the last three months; sales performance for the month of February beat analysts’ expectations and gave a boost to the retail sector.
  • Home Depot (NYSE:HD) is down 11.5% in the last month and down 19.1% in the last three months; company reported fiscal fourth-quarter net loss on $602 million in charges related to its exit from some businesses.
  • Lowe’s (NYSE:LOW) is down 19.6% in the last month and down 35.3% in the last 3-months; company reported a 60% drop in profits for its fiscal fourth quarter, hurt by falling sales and margins. Rising unemployment, falling home prices, tight credit and volatile equity markets are the main culprits in reducing consumer confidence and impact sales, according to TheStreet.

--Max Chen