Using the OGIG ETF to Invest In Global Internet Growth and E-Commerce Disruption

By: Kevin O’Leary, O’Shares Chairman & CNBC Contributor

I remember a few seasons back sitting on the set of Shark Tank with Chris Sacca talking about Travis Kalanick’s company UBER. Chris was an early investor in Uber and was remarking how much time Travis was spending in China trying to establish Uber as the leader in ride sharing in the worlds fastest growing economy.

That did not work out for Kalanick or Uber and today DiDi leads the market in China for ride sharing.

That story stuck in my mind and led me to pose the following question to my investment team.

“We already own Amazon, Facebook, Microsoft and Netflix but lets learn from the Uber story and find all the other companies around the world that are also growing Internet and e-commerce businesses. Find them for me, I want to invest in them too.”

I’m a big believer in actively managed Exchange Traded Funds or ETFs because the investment decision are developed and executed by rules that remain a constant so that there is very little style drift and the investment portfolio stays on mandate.

I searched online in vain for an ETF with a global Internet/e-commerce sphere of activity, that I could invest in. There were plenty of domestic Internet ETFs but I could not find one with a global focus or mandate.

One of my portfolio companies is O’Shares ETFs, of which I am also Chairman. That company works with index research teams to develop new indexes that they then release as ETFs that trade on the NYSE. I invest in these. We discussed the idea of developing a new index of Global Internet Giants and the team went to work.

Six months later O’Shares OGIG Global Internet Giants ETF started trading on the NYSE.

All the familiar companies that have changed e-commerce forever are housed in this ETFs but there are many others that you may have never heard of that are leading the charge and growing rapidly, just like their US counterparts in other economies all around the world. In fact the FTF currently has 52 companies identified as fast growers with quality balance sheets disrupting their domestic economies.

I use ETFs as investment vehicles because they are transparent, tax efficient and low cost. Any investor that wants to invest globally in Internet giants would have to hire a team to do the research and maintain the portfolio. Instead I invest in Internet and e-commerce growth using OGIG O’Shares actively managed rules based ETF.

Kevin O’Leary is Chairman of O’Shares ETFs. As of 6/6/2018 O’Shares ETF OGIG holds a position in the following stocks mentioned in this video:

Tencent, 5.57%
Amazon, 6.47%
Alibaba, 6.59%
Alphabet, 6.01%
Facebook, 6.21%
Netflix, 3.62%
Microsoft, 3.26%, 2.44%
Snap Inc, 1.73%
Weibo, 1.84%
MercadoLibre, 1.72%

For more information visit OGIG fund page. See the Prospectus for specific risks regarding the Fund.

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.

There Is No Tech Bubble; Embrace The Growth – Kevin O’Leary

June 5, 2018.

Guest(s): Kevin O’Leary

Growth amongst tech companies has been consistent across economies around the world, and investors should not shy from investing now, even during all-time high valuations, this according to Kevin O’Leary, chairman of O’Shares ETFs and star of “Shark Tank.”

O’Leary told Kitco News that while tech companies in developed countries are a good investment, their counterparts in emerging markets present even better upside potential owing to the high rate of growth of their host nations.

“I’ve started to look at other economies’ GDP growth. Look at China: 6% GDP growth versus 2.7%, 2.8% for us. You want to find the equivalent of every internet play in China because you’re getting double the domestic growth, and you can find those companies now,” O’Leary said. “To me, it’s just diversification.”

Mirroring this investment philosophy, O’Shares ETFs has launched the O’Shares Global Internet Giants ETF (NASDAQ: OGIG). The ETF tracks an index consisting of global high-growth internet and e-commerce companies.

“Everybody knows the classic names domestically: Amazon, Google, Microsoft. These are iconic companies that disrupted commerce in the United States and the North American markets forever. About a year ago, I thought to myself: who’s doing that in South America, who’s doing that in Europe, who’s doing that in China? So we created this index that sought out every company that’s doing it globally,” O’Leary said. (show less)

OGIG Fund Page | OGIG Holdings

Name (As of 06/04/2020)CountrySectorFund Weight IncUSConsumer Discretionary5.781%
Alphabet IncUSCommunication Services5.0238%
Tencent Holdings LtdCNCommunication Services4.6923%
Alibaba Group Holding LtdCNConsumer Discretionary4.6483%
Microsoft CorpUSInformation Technology4.6357%
Facebook IncUSCommunication Services4.2959%
Wayfair IncUSConsumer Discretionary2.6488%
Pinduoduo IncCNConsumer Discretionary2.4671%
Meituan DianpingCNConsumer Discretionary2.4591%
Crowdstrike Holdings IncUSInformation Technology2.3632%
Shopify IncCAInformation Technology2.3258%
Zoom Video Communications IncUSInformation Technology2.2917%
Twilio IncUSInformation Technology1.8837%
Zscaler IncUSInformation Technology1.8513%
MercadoLibre IncARConsumer Discretionary1.7098%
Snap IncUSCommunication Services1.6918%
Netflix IncUSCommunication Services1.5714%
DocuSign IncUSInformation Technology1.5586%
Zillow Group IncUSCommunication Services1.5566%
MongoDB IncUSInformation Technology1.5458%
Okta IncUSInformation Technology1.5411%
ServiceNow IncUSInformation Technology1.4959%
Chewy IncUSConsumer Discretionary1.476%
Coupa Software IncUSInformation Technology1.4742% IncUSInformation Technology1.4498%
Delivery Hero SEDEConsumer Discretionary1.4485%
Adobe IncUSInformation Technology1.3941%
Elastic NVUSInformation Technology1.3826%
Bilibili IncCNCommunication Services1.3545%
Trade Desk Inc/TheUSInformation Technology1.2871%
Pinterest IncUSCommunication Services1.2547%
Splunk IncUSInformation Technology1.2387% LtdILInformation Technology1.2087%
Atlassian Corp PLCAUInformation Technology1.1644% IncCNConsumer Discretionary1.1495%
Etsy IncUSConsumer Discretionary1.0995%
Smartsheet IncUSInformation Technology1.0704%
Xero LtdNZInformation Technology1.0059%
Zendesk IncUSInformation Technology1.0045%
HubSpot IncUSInformation Technology0.9897%
RingCentral IncUSInformation Technology0.9733%
Avalara IncUSInformation Technology0.91%
Anaplan IncUSInformation Technology0.9083%
HUYA IncCNCommunication Services0.8619%
Tencent Music Entertainment GrCNCommunication Services0.8538%
Spotify Technology SASECommunication Services0.8472%
Kingsoft Corp LtdCNInformation Technology0.7697%
Zalando SEDEConsumer Discretionary0.7682%
Workday IncUSInformation Technology0.7671%
Fortinet IncUSInformation Technology0.7646%
Zynga IncUSCommunication Services0.7454%
Palo Alto Networks IncUSInformation Technology0.7406%
Match Group IncUSCommunication Services0.6759%
VMware IncUSInformation Technology0.6031%
IAC/interactivecorpUSCommunication Services0.561%
Ubisoft Entertainment SAFRCommunication Services0.5416%
Guidewire Software IncUSInformation Technology0.5047%
Twitter IncUSCommunication Services0.4889%
Temenos AGCHInformation Technology0.4763%
Intuit IncUSInformation Technology0.4462% Group LtdCNConsumer Discretionary0.4403%
Rakuten IncJPConsumer Discretionary0.4225%
Momo IncCNCommunication Services0.3835%
LINE CorpJPCommunication Services0.372%
Baidu IncCNCommunication Services0.2987%
Activision Blizzard IncUSCommunication Services0.2769%
Z Holdings CorpJPCommunication Services0.2719%
Booking Holdings IncUSConsumer Discretionary0.2697%
NetEase IncCNCommunication Services0.2589%
VeriSign IncUSInformation Technology0.2201%
US DOLLARCashCash0.145%
US DOLLARCashCash0.0107%
JAPANESE YENCashCash0.0018%
Kingsoft Cloud Holdings LtdCNInformation Technology0.0%
HONG KONG DOLLARCashCash-0.0424%
JAPANESE YENCashCash-0.0311%
Holdings subject to change.

For more information visit OGIG fund page. See the Prospectus for specific risks regarding the Fund.

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.