O’Shares Global Internet Giants ETF (OGIG) is up +68% year-to-date through 9/30/2020, outperforming the NASDAQ 100 Stock Index by 36%. Performance and investor demand increased AUM to over $400 million, with inflows from institutions, advisors and retail investors. View the standardized performance for OGIG. "OGIG is a distinct ETF.” said Connor O’Brien, CEO of O’Shares ETF Investments. “We developed the distinctive OGIG index to own over 60 large cap e-commerce and internet services stocks with strong balance sheets and strong revenue growth, and not simply to own a market cap weight of all stocks in these sectors. We believe revenue growth matters, and the COVID pandemic has accelerated revenue growth in these sectors, by accelerating digitalization by consumers and businesses.”
Performance of OGIG has been supported by actual 12-month revenue growth of over 40% across the portfolio, which is much stronger than the 15% revenue growth reflected in the NASDAQ 100 and 11% revenue growth reflected in the Technology Select Sector Index1 as of 9/30/2020. Investors using OGIG gain exposure to a differentiated set of large cap e-commerce and internet stocks, most of which are not included in typical technology indexes. The OGIG index identified some strong performing stocks early, owning many for over a year which have only recently become better known; stocks such as Zoom Video Communications, DocuSign and Shopify2. Diversification within OGIG results in part from a cap on position size and selecting stocks from eight sub industries, including Internet & Direct Marketing Retail (30.8%), Application Software (21.8%) and Interactive Media & Services (18.0%). OGIG is differentiated from the Nasdaq 100 Index, with less than 25% overlap between the portfolios and only 20 stocks in common.
“The companies in OGIG create a portfolio of digital empowerment and digital transformation of the economy. These companies are powering what I call “America 2.0” and a new, more efficient economy. They provide e-commerce infrastructure, cloud services, data services, digital entertainment and more. These companies deliver powerful business efficiencies and growth,” said Kevin O’Leary, Chairman of O’Shares ETF Investments.
“The OGIG Index is selective and not simply market cap weighted; it is built on research that demonstrated the power of revenue growth; according to our research, global technology companies with top quartile revenue growth outperformed those in the 4th quartile by an average annualized return of 30% over the past three years3. We believe OGIG performance shows that revenue growth really matters.” said Connor O’Brien, CEO of O’Shares ETF Investments.
OGIG is an exchange traded fund (ETF) that seeks to track the performance (before fees and expenses) of the O’Shares Global Internet Giants Index (the “Target Index”). The Target Index, developed by the O’Shares Investment Advisers, LLC, the index provider, is a rules-based index intended to give investors a means of tracking stocks exhibiting quality and growth characteristics in the “internet sector”, as defined by O’Shares Investment Advisors, LLC. S-Network Global Indexes, Inc., an independent third party, is responsible for the ongoing maintenance, compilation, calculation and administration of the Target Index.
O’Shares ETF Investments
O’Shares Investments provides ETFs for long-term wealth management, with an emphasis on quality across our family of ETFs. The O’Shares ETFs are designed for investors with objectives ranging from wealth preservation and income to growth and capital appreciation. Each O’Shares ETF reflects our rules-based investment philosophy, including quality as an important characteristic. O’Shares ETFs are all managed according to rules-based indexes, and all are publicly listed.
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- The Technology Select Sector Index is a modified cap-weighted index. The index is intended to track the movements of companies that are components of the S&P 500 and are involved in the development or production of technology products.
- As of 9/30/2020 OGIG holds 2.56% in Zoom Video Communications (ZM), 1.43% in DocuSign (DOCU), and 2.25% in Shopify (SHOP). View all OGIG Holdings, click here
- As of 9/30/2020. S&P Global 1200 Information Technology Index: The S&P Global 1200 Information Technology index consists of all members of the S&P Global 1200 that are classified within the GICS® information technology sector. For more information, get our Internet & E-commerce Investing report.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. For most recent month end performance, please visit oshares.com.
The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund.
Short-term performance may often reflect conditions that are likely not sustainable, and thus such performance may not be repeated in the future. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
Before you invest in O’Shares ETF Investments Funds, please refer to the prospectus for important information about the investment objectives, risks, charges and expenses. To obtain a prospectus containing this and other important information, please visit www.oshares.com to view or download a prospectus online. Read the prospectus carefully before you invest. There are risks involved with investing including the possible loss of principal.
Concentration in a particular industry or sector will subject the Funds to loss due to adverse occurrences that may affect that industry or sector. The Funds may use derivatives which may involve risks different from, or greater than, those associated with more traditional investments. A Fund's emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform the market. Also, a company may reduce or eliminate its dividend after the Fund's purchase of such a company's securities. Returns on investments in foreign securities could be more volatile than, or trail the returns on, investments in U.S. securities. Exposures to foreign securities entail special risks, including political, diplomatic, economic, foreign market and trading risks. In addition, a Fund's investments in securities denominated in other currencies could decline due to changes in local currency relative to the value of the U.S. dollar, which may affect the Fund's returns. See the prospectus for specific risks regarding the Funds.
Companies involved with Internet technology and e-commerce are exposed to risks associated with rapid advances in technology, obsolescence of current products and services, the finite life of patents and the constant threat of global competition and substitutes.
Past performance does not guarantee future results. Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, consisting of 50,000 Shares. Brokerage commissions will reduce returns. The market price of Shares can be at, below, or above NAV. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded Shares at other times.
O’Shares ETF Investments Funds are distributed by Foreside Fund Services, LLC. Foreside Fund Services, LLC is not affiliated with O’Shares ETF Investments or any of its affiliates.
S-Network Global Indexes Inc. (“S-Network”) Disclaimer
Shares of the Funds are not sponsored, endorsed, sold or promoted by S-Network Global Indexes Inc., or third-party licensors. Neither S-Network nor its third-party licensors make any representation or warranty, express or implied, to the owners of a Fund or any member of the public regarding the advisability of investing in securities generally or in a Fund particularly or in the ability of a Fund to track the performance of its Target Index. S-Network and its third-party licensors are not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Funds’ shares to be issued or in the determination or calculation of the equation by which a Fund is to be converted into cash. S-Network has no obligation or liability in connection with the administration, marketing or trading of the Funds.
Director, Capital Markets and Strategic Development