3 Under The Radar Internet ETFs Delivering In 2020
By Todd Shriber, ETF Professor , Benzinga Staff Writer June 23, 2020
The Dow Jones Internet Composite Index, a widely followed collection of big-name internet stocks, hit a record high Monday and is higher by 23.58% year-to-date.
That sounds impressive and it is. Led by the likes of Amazon.com, Facebook and Google parent Alphabet, nothing seems to be derailing internet equities in 2020.
The exchange-traded fund that tracks Dow Jones Internet Composite Index is the largest in the category and hit a record high yesterday, too, but that doesn’t mean it’s the best fund in the lot. As is the case with market segments, some “quiet” ETFs can deliver potent punches in the internet arena.
Consider this trio, which also joined the all-time high club on Monday.
O’Shares Global Internet Giants ETF (OGIG)
Just two weeks past its second birthday, the O’Shares Global Internet Giants ETF
OGIG has $247.1 million in assets under management, so it’s not sneaking up on rivals anymore, but its outperformance of those competitors may be sneaking up on investors. Year to date, OGIG is up 44.68%, meaning it’s topping the biggest fund in this category by more than 2,100 basis points.
Interestingly, OGIG’s drubbing of its larger rival is being accrued despite the O’Shares ETF allocating just 15% of its combined weight to Amazon, Facebook and Alphabet.
The secret to OGIG’s success isn’t much of a secret, but it’s meaningful nonetheless: the fund features exposure to international (mainly Chinese) internet stocks while many of its rivals are devoted solely to U.S. stocks.
SPDR S&P Internet ETF (XWEB)
Though in more modest fashion than the aforementioned OGIG, the SPDR S&P Internet ETF XWEB is also beating the biggest internet ETF on a year-to-date basis.
That’s impressive because XWEB is an equal-weight ETF, meaning Amazon and Facebook are no more important to this fund’s fortunes than say Snap or Pinterest. In fact, Amazon and Facebook combine for less than 5% of XWEB’s weight.
The median market capitalization of XWEB’s 42 components is $8.7 billion, underscoring a lean toward mid-cap territory. Up 78.62% in the current quarter, XWEB also hit an all-time high yesterday.
Global X Social Media ETF (SOCL)
The Global X Social Media ETF SOCL is still the only dedicated social media ETF and at almost nine years old, it’s ancient by the standards of internet ETFs. Sometimes, things get better with age.
After hitting a record on Monday, SOCL is up 61.16% in the second quarter. What makes the fund’s recent bullishness all the more impressive is its combined 18.60% weight to Facebook and Twitter TWTR – two companies that seemingly invite political controversy whenever they can.
Like OGIG, SOCL offers investors the benefit of international exposure as roughly 62% of its 41 holdings aren’t domestic companies.
Read on Benzinga site.
Basis points (bps): Is a unit of measure used in quoting yields, changes in yields or differences between yields. One basis point is equal to 0.01% or one one-hundredth of a percent of yield and 100 basis points equals 1%. 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.
For the most recent standard performance of the Fund, click OGIG Fund Page.
OGIG Holdings
Name (As of 01/25/2021) | Ticker | Sector | Fund Weight | Quantity | CUSIP/ISIN |
---|---|---|---|---|---|
Amazon.com Inc | AMZN US | Consumer Discretionary | 5.693% | 13,546.00 | 023135106 |
Tencent Holdings Ltd | 700 HK | Communication Services | 4.956% | 392,817.00 | KYG875721634 |
Alibaba Group Holding Ltd | BABA US | Consumer Discretionary | 4.426% | 132,715.00 | 01609W102 |
Alphabet Inc | GOOGL US | Communication Services | 4.043% | 16,728.00 | 02079K305 |
Meituan | 3690 HK | Consumer Discretionary | 3.479% | 528,666.00 | KYG596691041 |
Facebook Inc | FB US | Communication Services | 3.373% | 95,087.00 | 30303M102 |
Microsoft Corp | MSFT US | Information Technology | 3.315% | 113,183.00 | 594918104 |
Pinduoduo Inc | PDD US | Consumer Discretionary | 2.788% | 121,104.00 | 722304102 |
Bilibili Inc | BILI US | Communication Services | 2.397% | 139,923.00 | 090040106 |
Shopify Inc | SHOP CN | Information Technology | 2.205% | 14,330.00 | CA82509L1076 |
MercadoLibre Inc | MELI US | Consumer Discretionary | 1.916% | 7,987.00 | 58733R102 |
Zoom Video Communications Inc | ZM US | Information Technology | 1.870% | 37,411.00 | 98980L101 |
Roku Inc | ROKU US | Communication Services | 1.802% | 33,106.00 | 77543R102 |
Delivery Hero SE | DHER GR | Consumer Discretionary | 1.744% | 81,463.00 | DE000A2E4K43 |
Zalando SE | ZAL GR | Consumer Discretionary | 1.726% | 111,094.00 | DE000ZAL1111 |
Crowdstrike Holdings Inc | CRWD US | Information Technology | 1.701% | 61,301.00 | 22788C105 |
NetEase Inc | NTES US | Communication Services | 1.559% | 98,275.00 | 64110W102 |
Snap Inc | SNAP US | Communication Services | 1.533% | 223,951.00 | 83304A106 |
JD.com Inc | JD US | Consumer Discretionary | 1.532% | 122,014.00 | 47215P106 |
Just Eat Takeaway.com NV | TKWY NA | Consumer Discretionary | 1.434% | 97,536.00 | NL0012015705 |
DocuSign Inc | DOCU US | Information Technology | 1.383% | 44,355.00 | 256163106 |
Zscaler Inc | ZS US | Information Technology | 1.381% | 52,102.00 | 98980G102 |
Netflix Inc | NFLX US | Communication Services | 1.370% | 19,289.00 | 64110L106 |
Chewy Inc | CHWY US | Consumer Discretionary | 1.370% | 104,781.00 | 16679L109 |
Tencent Music Entertainment Gr | TME US | Communication Services | 1.347% | 387,903.00 | 88034P109 |
Pinterest Inc | PINS US | Communication Services | 1.345% | 143,624.00 | 72352L106 |
Etsy Inc | ETSY US | Consumer Discretionary | 1.326% | 49,758.00 | 29786A106 |
Fastly Inc | FSLY US | Information Technology | 1.272% | 94,734.00 | 31188V100 |
ServiceNow Inc | NOW US | Information Technology | 1.264% | 18,415.00 | 81762P102 |
Twilio Inc | TWLO US | Information Technology | 1.261% | 25,997.00 | 90138F102 |
MongoDB Inc | MDB US | Information Technology | 1.237% | 26,264.00 | 60937P106 |
Kingdee International Software | 268 HK | Information Technology | 1.226% | 2,112,215.00 | KYG525681477 |
Zynga Inc | ZNGA US | Communication Services | 1.217% | 924,166.00 | 98986T108 |
HelloFresh SE | HFG GR | Consumer Discretionary | 1.187% | 105,285.00 | DE000A161408 |
Okta Inc | OKTA US | Information Technology | 1.170% | 34,793.00 | 679295105 |
Ubisoft Entertainment SA | UBI FP | Communication Services | 1.169% | 90,368.00 | FR0000054470 |
Smartsheet Inc | SMAR US | Information Technology | 1.142% | 126,900.00 | 83200N103 |
Farfetch Ltd | FTCH US | Consumer Discretionary | 1.090% | 139,483.00 | 30744W107 |
salesforce.com Inc | CRM US | Information Technology | 1.064% | 36,927.00 | 79466L302 |
Adobe Inc | ADBE US | Information Technology | 1.019% | 16,869.00 | 00724F101 |
Spotify Technology SA | SPOT US | Communication Services | 1.016% | 23,861.00 | L8681T102 |
Zillow Group Inc | Z US | Communication Services | 0.994% | 53,057.00 | 98954M200 |
RingCentral Inc | RNG US | Information Technology | 0.989% | 20,200.00 | 76680R206 |
Coupa Software Inc | COUP US | Information Technology | 0.986% | 24,271.00 | 22266L106 |
Wayfair Inc | W US | Consumer Discretionary | 0.984% | 26,199.00 | 94419L101 |
Trade Desk Inc/The | TTD US | Information Technology | 0.976% | 9,733.00 | 88339J105 |
TeamViewer AG | TMV GR | Information Technology | 0.956% | 144,331.00 | DE000A2YN900 |
Xero Ltd | XRO AU | Information Technology | 0.953% | 70,499.00 | NZXROE0001S2 |
Elastic NV | ESTC US | Information Technology | 0.943% | 44,903.00 | N14506104 |
Atlassian Corp PLC | TEAM US | Information Technology | 0.921% | 31,245.00 | G06242104 |
Zendesk Inc | ZEN US | Information Technology | 0.898% | 47,839.00 | 98936J101 |
Wix.com Ltd | WIX US | Information Technology | 0.882% | 27,122.00 | M98068105 |
Anaplan Inc | PLAN US | Information Technology | 0.781% | 88,589.00 | 03272L108 |
Splunk Inc | SPLK US | Information Technology | 0.766% | 34,944.00 | 848637104 |
Avalara Inc | AVLR US | Information Technology | 0.765% | 37,198.00 | 05338G106 |
HubSpot Inc | HUBS US | Information Technology | 0.736% | 15,017.00 | 443573100 |
Palo Alto Networks Inc | PANW US | Information Technology | 0.721% | 15,662.00 | 697435105 |
Workday Inc | WDAY US | Information Technology | 0.705% | 23,516.00 | 98138H101 |
Baidu Inc | BIDU US | Communication Services | 0.665% | 20,464.00 | 056752108 |
Nexon Co Ltd | 3659 JP | Communication Services | 0.640% | 159,357.00 | JP3758190007 |
Fortinet Inc | FTNT US | Information Technology | 0.621% | 32,082.00 | 34959E109 |
Match Group Inc | MTCH US | Communication Services | 0.583% | 32,798.00 | 57667L107 |
Z Holdings Corp | 4689 JP | Communication Services | 0.517% | 609,277.00 | JP3933800009 |
Twitter Inc | TWTR US | Communication Services | 0.512% | 83,907.00 | 90184L102 |
Activision Blizzard Inc | ATVI US | Communication Services | 0.452% | 37,901.00 | 00507V109 |
Intuit Inc | INTU US | Information Technology | 0.437% | 9,156.00 | 461202103 |
Booking Holdings Inc | BKNG US | Consumer Discretionary | 0.388% | 1,505.00 | 09857L108 |
VMware Inc | VMW US | Information Technology | 0.302% | 17,347.00 | 928563402 |
eBay Inc | EBAY US | Consumer Discretionary | 0.289% | 39,551.00 | 278642103 |
Electronic Arts Inc | EA US | Communication Services | 0.258% | 13,795.00 | 285512109 |
USD CURNCY | USD CURNCY | 0.022% | 173,624.42 | ||
Ocado Group PLC | OCDO LN | Consumer Discretionary | 0.009% | 189,774.00 | GB00B3MBS747 |
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 view or download a prospectus. 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.
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.
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.
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