O’Shares Global Internet Giants ETF (OGIG) generated over 109% return in the 1-year ending 12/16/2020, outperforming the NASDAQ 100 Stock Index by over 60%. Performance reflects the OGIG index and portfolio of 60 plus e-commerce and internet stocks, selected for quality and revenue growth. Strong performance and investor demand has pushed AUM over $600 million, with inflows from a diverse investor base. View the standardized performance for OGIG.
“It’s amazing how rapidly COVID transformed the consumer, businesses and the economy. All have become much more digital. It’s much more than a simple story of work from home. It’s work, shop, play and more from anywhere you want, for consumers and for businesses. OGIG demonstrates the difference between “Old Tech and New Tech”. Finding growth in this tech driven economy is what OGIG is about. The OGIG portfolio has about 39% in stocks over $100 billion market cap, and 60% in stocks under $100 billion, which includes many faster growing new tech companies. OGIG can be a New Tech investment to replace or to blend with Old Tech strategies,” said Kevin O’Leary, Chairman of O’Shares ETFs.
CEO of O’Shares ETFs, Connor O’Brien, discussed the OGIG index. “We developed the OGIG Index to be selective, holding high quality and fast growing e-commerce and internet stocks. Stocks selected for revenue growth, profitability and healthy balance sheets, and index rules that limit allocation to mega-cap stocks, allowing greater allocation to what we call mid-size giants, and these have been among the strongest OGIG stocks. The OGIG portfolio is transparent. Investors who look under the hood will see many names they know, and many new names that include fast growing mid-size giants. The OGIG index is more than 70% different compared to the NASDAQ 100 index and the Technology Select Sector Index1 as of 11/30/2020, with actual revenue growth (trailing 12-month) of over 40% across the OGIG Index, compared to only 17% for the NASDAQ 100 index and 11% for the Technology Select Sector Index1 as of 11/30/2020. We believe strong revenue growth across the OGIG index is very intentional, because our research shows us that revenue growth is very important to business performance and stock price performance. We follow the analyst estimate data on Bloomberg and find it encouraging to see so many OGIG stocks have had positive revenue revisions.”
OGIG stocks include mega-caps that have performed well over the 1-year period as of 11/30/2020 such as the five largest holdings, Amazon (+75%), Alibaba (+31%), Alphabet (+34%), Tencent (+70%) and Facebook (+37%). It also includes notable mid-size giants such as Snap (+191%), Pintrest (+259%), Farfetch (+449%), Trade Desk (+242%) and Etsy (+270%). Zoom Video Communications (+603%), Shopify (+171%) and Mercadolibre (+172%) have been among the strongest performers in the portfolio year-to-date2.
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 5.68% in Amazon (AMZN), 5.80% in Alibaba (BABA), 3.77% in Alphabet (GOOGL), 3.99% in Tencent (700 HK), 3.74% in Facebook (FB), 1.56% in Snap (SNAP), 1.55% in Pintrest (PINS), 1.07% in Farfetch (FTCH), 1.37% in Trade Desk (TTD), 1.22% in ETSY (ETSY), 2.56% in Zoom Video Communications (ZM), 2.25% in Shopify (SHOP) and 1.67% in Mercadolibre (MELI). View all OGIG Holdings, click here.
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