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.