O’Shares Global Internet Giants ETF (OGIG) is up over 40% year-to-date through June 18, 2020, outperforming the NASDAQ 100 Stock Index by over 25% and surpassed $200 million in AUM. OGIG celebrated its 2-year anniversary on June 5, 2020. 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 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 $200m YTD ($46m at 12/31/2019), with investor inflows and performance of over 15%, 25% and 40% in the 1-month, 3-month and 12-month periods, respectively, through the end of May.
“Digital transformation of the U.S. economy is accelerating because the pandemic is forcing companies to change, fast. The U.S. 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,” said 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 emphasizes revenue growth,” said Connor O’Brien, CEO of O’Shares ETFs.
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.
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. 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.
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.