O’Leary’s O’Shares Introduces An ‘Internet Giants’ ETF
Todd Shriber, ETF Professor , Benzinga Staff Writer
June 06, 2018 9:36am
O’Shares ETF Investments, the exchange traded funds issuer founded by entrepreneur and “Shark Tank” star Kevin O’Leary, on Tuesday introduced the O’Shares Global Internet Giants ETF OGIG
The O’Shares Global Internet Giants ETF one five ETFs O’Shares recently filed plans for and could introduce in the weeks ahead.
The new Internet Giants ETF tracks the cap-weighted O’Shares Global Internet Giants Index. While that index weights components by market value, O’Shares employs the growth and quality factors.
OGIG “is a rules-based ETF designed to provide investors with the means to invest in some of the largest global companies that derive most of their revenue from the Internet and e-commerce sectors that exhibit quality and growth potential,” according to O’Shares.
Why It’s Important
As an Internet ETF, essentially all of OGIG’s 52 member firms hail from the technology and consumer discretionary sectors. The new ETF’s holdings have a combined market value of $4.45 trillion. OGIG features exposure to seven countries with the U.S. and China combining for about 86 percent of the rookie ETF’s geographic exposure.
The fund’s top 10 holdings contain an array of familiar Internet behemoth, including Alibaba Group Holding Ltd., Amazon.com, Inc., Facebook Inc., Netflix, Inc. and China’s JD.com Inc. Those stocks combine for about a quarter of OGIG’s weight.
OGIG could benefit from good timing. On Tuesday — the day the new ETF launched — three of its established rivals in the Internet ETF space hit all-time highs.
OGIG charges 0.48 percent per year, or $48 on a $10,000 investment. That makes the new O’Shares ETF five basis points less expensive than the largest Internet ETF listed in the U.S.
OGIG Fund Page | OGIG Holdings
|Name (As of 6/22/2018)||Country||Sector||Fund Weight|
|Facebook Inc||US||Information Technology||6.38%|
|Alphabet Inc||US||Information Technology||6.14%|
|Amazon.com Inc||US||Consumer Discretionary||6.05%|
|Alibaba Group Holding Ltd||CN||Information Technology||5.91%|
|Tencent Holdings Ltd||CN||Information Technology||5.51%|
|Netflix Inc||US||Consumer Discretionary||3.90%|
|Microsoft Corp||US||Information Technology||3.18%|
|JD.com Inc||CN||Consumer Discretionary||2.69%|
|Snap Inc||US||Information Technology||2.27%|
|Weibo Corp||CN||Information Technology||2.21%|
|Shopify Inc||CA||Information Technology||2.17%|
|MercadoLibre Inc||AR||Information Technology||2.15%|
|NetEase Inc||CN||Information Technology||2.07%|
|58.com Inc||CN||Information Technology||2.00%|
|YY Inc||CN||Information Technology||1.92%|
|ServiceNow Inc||US||Information Technology||1.91%|
|Ctrip.com International Ltd||CN||Consumer Discretionary||1.86%|
|Baidu Inc||CN||Information Technology||1.84%|
|Just Eat PLC||GB||Information Technology||1.79%|
|SINA Corp/China||CN||Information Technology||1.79%|
|Adobe Systems Inc||US||Information Technology||1.72%|
|Nutanix Inc||US||Information Technology||1.71%|
|2U Inc||US||Information Technology||1.70%|
|Wayfair Inc||US||Consumer Discretionary||1.70%|
|Momo Inc||CN||Information Technology||1.69%|
|GrubHub Inc||US||Information Technology||1.67%|
|ASOS PLC||GB||Consumer Discretionary||1.66%|
|Start Today Co Ltd||JP||Consumer Discretionary||1.60%|
|Atlassian Corp PLC||GB||Information Technology||1.60%|
|salesforce.com Inc||US||Information Technology||1.55%|
|Zendesk Inc||US||Information Technology||1.47%|
|Proofpoint Inc||US||Information Technology||1.40%|
|Workday Inc||US||Information Technology||1.31%|
|Zalando SE||DE||Consumer Discretionary||1.28%|
|Splunk Inc||US||Information Technology||1.28%|
|Vipshop Holdings Ltd||CN||Consumer Discretionary||1.26%|
|Booking Holdings Inc||US||Consumer Discretionary||1.12%|
|Guidewire Software Inc||US||Information Technology||1.11%|
|Autohome Inc||CN||Information Technology||1.05%|
|Zillow Group Inc||US||Information Technology||0.91%|
|CoStar Group Inc||US||Industrials||0.88%|
|United Internet AG||DE||Information Technology||0.81%|
|Match Group Inc||US||Information Technology||0.77%|
|Red Hat Inc||US||Information Technology||0.67%|
|Rakuten Inc||JP||Consumer Discretionary||0.62%|
|Twitter Inc||US||Information Technology||0.53%|
|Expedia Group Inc||US||Consumer Discretionary||0.51%|
|eBay Inc||US||Information Technology||0.50%|
|Intuit Inc||US||Information Technology||0.49%|
|VMware Inc||US||Information Technology||0.43%|
|Yahoo Japan Corp||JP||Information Technology||0.39%|
|HONG KONG DOLLAR||Cash||0.00%|
|SOUTH KOREA WON||Cash||0.00%|
|NEW ZEALAND DOLLAR||Cash||0.00%|
Companies involved with the 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.
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. The funds' 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, unless perfectly hedged, the 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. The funds' hedging strategies may not be successful, and even if they are successful, the funds' exposure to foreign currency fluctuations is not expected to be fully hedged at all times. See the prospectus for specific risks regarding the Fund.
The securities of small capitalization companies are often more volatile and less liquid than the stocks of larger companies and may be more affected than other types of securities during market downturns. Compared to larger companies, small capitalization companies may have a shorter history of operations, and may have limited product lines, markets or financial resources.
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