“Yes. OGIG was up over 100% in 2020 and up over 10% already in 2021. Yes, I’m buying more. Why? Because I believe the digital consumer and business mega trends will just keep going. We are never going back to the old normal,” said Kevin O’Leary, Chairman and Co-owner of O’Shares ETFs.
O’Shares Global Internet Giants ETF (OGIG) performance was up over 107% for the year ending 12/31/2020 and up over 10% to start 2021 through 2/9/2021 (outperforming the NASDAQ 100 Stock Index by 58% in 2020 and by 8% in 2021 through 2/9/2021). OGIG has increased AUM to over $800 million.
Performance reflects the OGIG index and portfolio of 60 plus e-commerce and internet stocks, selected for quality and revenue growth. View the standardized performance for OGIG.
“In my many private companies, digital transformation is just beginning,” O’Leary added. “We are cutting office, travel and distribution costs, and investing aggressively in new digital solutions. OGIG is the ETF I use to invest in these long-term digitalization trends. It holds fast-growing internet giants of today and many potentially faster growing internet giants of the future. You can see this in the weighted average revenue growth (trailing 12-month) in OGIG, which is around 40% as of 12/31/2020, much higher than traditional tech indexes. I’ve also been seeing the mid-size giants in the portfolio growing even faster than the mega caps, and analysts are noticing too, revising sales estimates upward in the last 3 months for most companies in OGIG.”
CEO of O’Shares ETFs, Connor O’Brien, discussed the OGIG index and current valuation levels for tech stocks. “The OGIG Index rules have resulted in the identification of 'mid-sized giants' and strong performance. Our research showed the importance of revenue growth: the top quartile of global tech stocks by 3-year revenue growth outperformed those in the 4th quartile by over 36% in the 3-year period ending 12/31/2020.1 The methodology successfully identified strong performing lesser-known mid-size internet giants, with 60% of OGIG invested in stocks having market caps under $100 billion, that generated over 80% of index returns in 2020. Stocks in this group include Zoom Video Communications, Pinduoduo and Crowdstrike, each of which were up over 300% last year.2 Advisors have been asking whether valuations for these stocks are rich, which we believe depends on strength of fundamentals. Amazon, for example, is a stock that many people have long considered expensive, yet it has had strong revenue growth and in the past 5 years has outperformed the S&P 500 by almost 300%. Revenue growth is a great indicator.”
As of 12/31/2020, the top stocks in OGIG include: Amazon (AMZN) 6.09%, Alibaba (BABA) 4.26%, Alphabet (GOOG) 4.04%, Tencent (700 HK) 3.95%, Facebook (FB) 3.58%, Microsoft (MSFT) 3.47%, Pinduoduo (PDD) 2.97%, Meituan (3690 HK) 2.77%, Shopify (SHOP) 2.23% and Mercadolibre (MELI) 1.85%. View all OGIG Holdings. Click here.
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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- As of 12/31/2020. 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.
- As of 12/31/2020 OGIG holds 2.97% in Pinduoduo, 1.79% in Crowdstrike (CRWD) and 1.74% in Zoom Video Communications (ZM). 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.
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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