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 08/16/2019)CountrySectorFund Weight
Alibaba Group Holding LtdCNConsumer Discretionary6.70%
Alphabet IncUSCommunication Services6.65%
Tencent Holdings LtdCNCommunication Services6.00% IncUSConsumer Discretionary5.90%
Facebook IncUSCommunication Services5.69%
Microsoft CorpUSInformation Technology4.35% IncUSInformation Technology2.44%
Netflix IncUSCommunication Services2.24%
Meituan DianpingCNConsumer Discretionary2.00%
Pinduoduo IncCNConsumer Discretionary1.97%
Adobe IncUSInformation Technology1.93%
Shopify IncCAInformation Technology1.92%
MercadoLibre IncARConsumer Discretionary1.69%
ServiceNow IncUSInformation Technology1.56%
Atlassian Corp PLCGBInformation Technology1.50%
Just Eat PLCGBConsumer Discretionary1.50%
Elastic NVUSInformation Technology1.48%
Anaplan IncUSInformation Technology1.45%
Snap IncUSCommunication Services1.42%
Workday IncUSInformation Technology1.39%
Bilibili IncCNCommunication Services1.36%
Twilio IncUSInformation Technology1.36%
Okta IncUSInformation Technology1.34%
Zscaler IncUSInformation Technology1.33%
Splunk IncUSInformation Technology1.22%
Coupa Software IncUSInformation Technology1.21%
Trade Desk Inc/TheUSInformation Technology1.20%
MongoDB IncUSInformation Technology1.19%
RingCentral IncUSInformation Technology1.13% IncCNConsumer Discretionary1.08%
Spotify Technology SASECommunication Services1.07%
Zendesk IncUSInformation Technology1.04%
Zillow Group IncUSCommunication Services1.03%
HubSpot IncUSInformation Technology1.01%
Alibaba Pictures Group LtdCNCommunication Services0.98%
DocuSign IncUSInformation Technology0.93%
Zynga IncUSCommunication Services0.92%
GrubHub IncUSConsumer Discretionary0.92%
NetEase IncCNCommunication Services0.92%
Momo IncCNCommunication Services0.89%
Cargurus IncUSCommunication Services0.89%
Wayfair IncUSConsumer Discretionary0.85%
ZOZO IncJPConsumer Discretionary0.81%
Weibo CorpCNCommunication Services0.81%
Proofpoint IncUSInformation Technology0.80%
Autohome IncCNCommunication Services0.77%
Etsy IncUSConsumer Discretionary0.76%
Nutanix IncUSInformation Technology0.74%
Zalando SEDEConsumer Discretionary0.74%
Palo Alto Networks IncUSInformation Technology0.72% International LtdCNConsumer Discretionary0.71%
Match Group IncUSCommunication Services0.68%
Farfetch LtdGBConsumer Discretionary0.65%
Baidu IncCNCommunication Services0.64%
Twitter IncUSCommunication Services0.63%
New Relic IncUSInformation Technology0.57%
Booking Holdings IncUSConsumer Discretionary0.56% IncCNCommunication Services0.54%
IAC/InterActiveCorpUSCommunication Services0.53%
Fortinet IncUSInformation Technology0.52%
2U IncUSInformation Technology0.52%
Intuit IncUSInformation Technology0.52%
VMware IncUSInformation Technology0.49%
Temenos AGCHInformation Technology0.45%
Ocado Group PLCGBConsumer Discretionary0.44%
Dropbox IncUSInformation Technology0.40%
Rakuten IncJPConsumer Discretionary0.38%
Expedia Group IncUSConsumer Discretionary0.36%
GoDaddy IncUSInformation Technology0.35%
eBay IncUSConsumer Discretionary0.22%
US DOLLARCash0.05%
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.