O’Shares Global Internet Giants ETF (OGIG) is up over 40 per cent year-to-date through 18 June, 2020, outperforming the NASDAQ 100 Stock Index by over 25 per cent and has surpassed USD200 million in AUM.
OGIG, which celebrated its two-year anniversary on 5 June, 2020, 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 access a distinct set of large cap internet and e-commerce stocks, most of which are not present in typical technology indexes. AUM in OGIG increased to over USD200 million YTD (USD46 million at 12/31/2019), with investor inflows and performance of over 15 per cent, 25 per cent and 40 per cent in the 1-month, 3-month and 12-month periods, respectively, through the end of May.
“Digital transformation of the US economy is accelerating because the pandemic is forcing companies to change, fast. The US economy, we call it ‘America 2.0’, could get six years of digital transformation packed into six months, with companies adopting technology, selling more directly to customers and expanding their margins. Potential winners could include not just Amazon, but companies growing even faster that enable digital transformation by providing the digital survival tools in cyber-security, data, cloud and other B2B services. Just look at the OGIG portfolio, with companies many people didn’t even know twelve months ago, that are now huge and growing faster than ever. The pandemic is causing some surprising efficiency gains and profit growth,” says Kevin O’Leary, Chairman of O’Shares ETFs.
“OGIG is driven by innovative index rules for stock selection and allocations that have led to strong performance. The index is designed to include large cap stocks in e-commerce and internet related sectors that are scored, screened and selected for quality and revenue growth. The index rules, based on our extensive research, are somewhat Darwinian: stocks with lower quality and lower revenue growth are reduced or eliminated from the index, while those with strong metrics have increased allocations. Although these rules may seem logical and almost obvious, they also seem very helpful in identifying stocks with rapidly scalable businesses serving large markets. We believe the e-commerce and internet long-term trends will favor an investment approach that emphasises revenue growth,” says Connor O’Brien, CEO of O’Shares ETFs.
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