O’Shares Global Internet Giants ETF (OGIG) up 57 per cent YTD
O’Shares Global Internet Giants ETF (OGIG) is up +57 per cent year-to-date through 8 July, 2020, outperforming the NASDAQ 100 Stock Index by over 30 per cent.
AUM has increased over six fold from USD46 million at the end of 2019 to over USD300 million, with inflows from institutions, advisors and retail investors. View the standardised 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 per cent), Application Software (24.7 per cent) and Interactive Media & Services (22.4 per cent). Revenue growth of the companies in OGIG was 37 per cent on an actual trailing twelve-month basis (portfolio weighted average), compared to 14 per cent for the companies in the Nasdaq 100 as of the end of June.
“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-plus 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," says 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 USD6 trillion injected into the economy by Congress and the Fed and you get a big boost to spending and revenue. As of the end of June, almost half the OGIG portfolio is allocated to companies with over USD100 billion market cap, that had 28 per cent revenue growth rates and ~38 per cent YTD performance. Although impressive, the metrics are even stronger for the companies in the OGIG portfolio with under USD100 billion market cap, that had ~44 per cent revenue growth and 62 per cent 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,” says Connor O’Brien, CEO of O’Shares ETFs.