O’Shares Global Internet Giants ETF (OGIG) is up +57% year-to-date through July 8, 2020, outperforming the NASDAQ 100 Stock Index by over 30% and AUM has increased over six fold from $46 million at 12/31/2019 to over $300 million, with inflows from institutions, advisors and retail investors. View the standardized performance for OGIG.
OGIG holds over 60 large cap stocks of internet and e-commerce businesses, selected for strong balance sheets and strong revenue growth. Investors are using OGIG to gain exposure to a distinct set of large cap internet and e-commerce stocks, most of which are not included in typical technology indexes. Stocks in the portfolio are selected from eight sub industries, with the largest portfolio allocations to Internet & Direct Marketing Retail (25.0%), Application Software (24.7%) and Interactive Media & Services (22.4%). Revenue growth of the companies in OGIG was 37% on an actual trailing twelve-month basis (portfolio weighted average), compared to 14% for the companies in the Nasdaq 100 as of 06/30/2020.
“Consumers and businesses have made major changes in response to the current health crisis, using more digital services for shopping, entertainment, advertising, sales, marketing and workflow. It is great to see the efficiency gains across my portfolio of 50+ private companies. My CEOs are cutting their real estate costs, investing in digital business tools to enable people to work from home -- best of all, businesses are using technologies from numerous companies in OGIG’s portfolio, to replace lost “in store sales” with direct-to-consumer e-commerce, and to get higher margins. These are great trends for the economy and for the companies providing these internet technologies, “said Kevin O’Leary, Chairman of O’Shares ETFs.
“Revenue growth rates, both actual and analyst estimates, are important drivers of the index we developed for OGIG because our research indicated a strong relationship between revenue growth and stock performance in these industry subsegments. Combine that with $6 trillion injected into the economy by Congress and the Fed and you get a big boost to spending and revenue. As of 06/30/2020, almost half the OGIG portfolio is allocated to companies with over $100 billion market cap, that had 28% revenue growth rates and ~38% YTD performance. Although impressive, the metrics are even stronger for the companies in the OGIG portfolio with under $100 billion market cap, that had ~44% revenue growth and 62% YTD performance, which demonstrates the importance of revenue growth. We see OGIG as an excellent complement to other technology investments because the portfolio includes so many strong companies we call “New Tech” that are generally not in other traditional technology indexes,” said Connor O’Brien, CEO of O’Shares ETFs.
OGIG is the quality and growth internet technology and e-commerce investment provided by O’Shares ETF Investments, a family of ETFs that also includes OUSA, OUSM and OEUR.
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 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 the index provider, O’Shares Investment Advisors, LLC.
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 listed on the New York Stock Exchange.
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O’Shares ETFs: OUSA | OUSM | OGIG | OEUR
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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