How To Invest In Historic Tech Growth
By Renato Capelj , Benzinga Writer July 6, 2020
O’Shares Investments, a provider of quality ETFs for long-term wealth accumulation and management, announced its O’Shares Global Internet Giants ETF OGIG, with over $200 million in assets under management, successfully outperformed the Nasdaq-100 stock index by over 25%.
As part of the development, O’Shares CEO Connor O’Brien spoke with Benzinga on how investors can leverage OGIG as a liquid vehicle to gain exposure in the greatest period of technology growth in history.
About O’Shares And OGIG:
O’Shares was founded by businessman and entrepreneur Kevin O’Leary, alongside O’Brien, in an effort to offer investors access to quality, financially sound companies.
The firm’s flagship investment vehicles include O’SHares U.S. Quality Dividend ETF OUSA, O’Shares U.S. Small Cap Quality Dividend ETF OUSM, and O’Shares Europe Quality Dividend ETF OEUR, which offer exposure to large- and small-cap companies with strong measures for profitability, balance sheet strength, as well as dividend coverage and growth.
After finding success in the ETF industry, O’Shares recently expanded into the technology sector upon noticing that the big-name technology companies weren’t growing as fast.
“The companies that were growing fast were not in the tech-sector definition,” the CEO said. “So, OGIG is an index we’ve developed in order to create a way to own the companies that are tech-driven.”
More than two-thirds of the OGIG digitally-driven portfolio allocation is not even a part of the traditional tech-sector definition.
“OGIG is designed to score companies and select them if they have strong profitability, balance sheets, and revenue growth,” O’Brien said. “The revenue growth rate across the OGIG portfolio is 38%, on a trailing 12-month basis. Whereas, for the S&P or tech-sector, as you traditionally find, it may be even 10%.”
The Digital Transformation:
In light of the global economic shutdown as a result of COVID-19 coronavirus restrictions, businesses shut down and millions were unemployed. Despite the near-term economic impact, past crises have onset the emergence of lasting innovation and growth.
“Digital transformation of the U.S. economy is accelerating because the pandemic is forcing companies to change, fast,” said Kevin O’Leary, Chairman of O’Shares ETFs. “The U.S. economy, we call it ‘America 2.0’, could get six years of digital transformation packed into six months, with companies adopting technology, selling more directly to customers, and expanding their margins.”
Beneficiaries of the COVID-19 crisis, according to O’Leary, are those companies providing a platform for continued digital transformation, such as cyber-security, data, cloud, among other B2B services.
“There is money. The Fed and Congress have put trillions of dollars into the economy to make up for the lost jobs,” said O’Brien. “More of that money is going to the digital channels, less is going through traditional sales channels.”
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The O’Shares thesis has panned out; consumers have changed the way they spend, directing much of the federal stimulus into channels supported by the companies that make up OGIG.
“What we found from our research is that the majority of the stocks in the traditional indexes, whether it’s S&P or Nasdaq, had negative revisions on both revenue and earnings, whereas the stocks in OGIG experienced more upward revisions,” O’Brien added.
“Do you want to invest in those that are getting downgraded, that are seeing sales expectations cut down, or do you want to invest in those that are seeing sales expectations improve?”
Read on Benzinga site.
“O’Shares Global Internet Giants ETF OGIG, with over $200 million in assets under management, successfully outperformed the Nasdaq-100 stock index by over 25%.” Data as of 6/18/2020.
Short-term performance may often reflect conditions that are likely not sustainable and such performance may not be repeated in the future.
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 01/18/2021) | Ticker | Sector | Fund Weight | Quantity | CUSIP/ISIN |
---|---|---|---|---|---|
Amazon.com Inc | AMZN US | Consumer Discretionary | 5.701% | 13,444.00 | 023135106 |
Tencent Holdings Ltd | 700 HK | Communication Services | 4.515% | 390,017.00 | KYG875721634 |
Alibaba Group Holding Ltd | BABA US | Consumer Discretionary | 4.381% | 131,721.00 | 01609W102 |
Alphabet Inc | GOOGL US | Communication Services | 3.918% | 16,602.00 | 02079K305 |
Microsoft Corp | MSFT US | Information Technology | 3.263% | 112,335.00 | 594918104 |
Facebook Inc | FB US | Communication Services | 3.241% | 94,375.00 | 30303M102 |
Meituan | 3690 HK | Consumer Discretionary | 3.004% | 524,666.00 | KYG596691041 |
Pinduoduo Inc | PDD US | Consumer Discretionary | 2.647% | 120,196.00 | 722304102 |
Bilibili Inc | BILI US | Communication Services | 2.327% | 138,875.00 | 090040106 |
Shopify Inc | SHOP CN | Information Technology | 2.312% | 14,222.00 | CA82509L1076 |
MercadoLibre Inc | MELI US | Consumer Discretionary | 2.005% | 7,927.00 | 58733R102 |
Zoom Video Communications Inc | ZM US | Information Technology | 1.951% | 37,131.00 | 98980L101 |
Roku Inc | ROKU US | Communication Services | 1.833% | 32,858.00 | 77543R102 |
Crowdstrike Holdings Inc | CRWD US | Information Technology | 1.825% | 60,841.00 | 22788C105 |
Zalando SE | ZAL GR | Consumer Discretionary | 1.751% | 110,262.00 | DE000ZAL1111 |
Delivery Hero SE | DHER GR | Consumer Discretionary | 1.750% | 80,853.00 | DE000A2E4K43 |
Chewy Inc | CHWY US | Consumer Discretionary | 1.536% | 103,997.00 | 16679L109 |
Snap Inc | SNAP US | Communication Services | 1.528% | 222,273.00 | 83304A106 |
DocuSign Inc | DOCU US | Information Technology | 1.499% | 44,023.00 | 256163106 |
Zscaler Inc | ZS US | Information Technology | 1.491% | 51,712.00 | 98980G102 |
JD.com Inc | JD US | Consumer Discretionary | 1.452% | 121,100.00 | 47215P106 |
Just Eat Takeaway.com NV | TKWY NA | Consumer Discretionary | 1.401% | 96,806.00 | NL0012015705 |
NetEase Inc | NTES US | Communication Services | 1.400% | 97,539.00 | 64110W102 |
Etsy Inc | ETSY US | Consumer Discretionary | 1.379% | 49,386.00 | 29786A106 |
Twilio Inc | TWLO US | Information Technology | 1.370% | 25,803.00 | 90138F102 |
Pinterest Inc | PINS US | Communication Services | 1.358% | 142,548.00 | 72352L106 |
Netflix Inc | NFLX US | Communication Services | 1.302% | 19,145.00 | 64110L106 |
MongoDB Inc | MDB US | Information Technology | 1.287% | 26,068.00 | 60937P106 |
ServiceNow Inc | NOW US | Information Technology | 1.283% | 18,277.00 | 81762P102 |
Ubisoft Entertainment SA | UBI FP | Communication Services | 1.225% | 89,692.00 | FR0000054470 |
Zynga Inc | ZNGA US | Communication Services | 1.212% | 917,244.00 | 98986T108 |
Smartsheet Inc | SMAR US | Information Technology | 1.209% | 125,950.00 | 83200N103 |
Okta Inc | OKTA US | Information Technology | 1.194% | 34,533.00 | 679295105 |
Kingdee International Software | 268 HK | Information Technology | 1.178% | 2,096,215.00 | KYG525681477 |
Tencent Music Entertainment Gr | TME US | Communication Services | 1.168% | 384,997.00 | 88034P109 |
Fastly Inc | FSLY US | Information Technology | 1.133% | 94,024.00 | 31188V100 |
HelloFresh SE | HFG GR | Consumer Discretionary | 1.109% | 104,497.00 | DE000A161408 |
Farfetch Ltd | FTCH US | Consumer Discretionary | 1.097% | 138,439.00 | 30744W107 |
Coupa Software Inc | COUP US | Information Technology | 1.082% | 24,089.00 | 22266L106 |
salesforce.com Inc | CRM US | Information Technology | 1.067% | 36,651.00 | 79466L302 |
Wayfair Inc | W US | Consumer Discretionary | 1.066% | 26,003.00 | 94419L101 |
Adobe Inc | ADBE US | Information Technology | 1.048% | 16,743.00 | 00724F101 |
Trade Desk Inc/The | TTD US | Information Technology | 1.037% | 9,661.00 | 88339J105 |
Spotify Technology SA | SPOT US | Communication Services | 1.035% | 23,683.00 | L8681T102 |
RingCentral Inc | RNG US | Information Technology | 1.021% | 20,048.00 | 76680R206 |
Xero Ltd | XRO AU | Information Technology | 1.004% | 69,971.00 | NZXROE0001S2 |
Elastic NV | ESTC US | Information Technology | 0.992% | 44,567.00 | N14506104 |
Zillow Group Inc | Z US | Communication Services | 0.989% | 52,659.00 | 98954M200 |
TeamViewer AG | TMV GR | Information Technology | 0.972% | 143,249.00 | DE000A2YN900 |
Atlassian Corp PLC | TEAM US | Information Technology | 0.944% | 31,011.00 | G06242104 |
Zendesk Inc | ZEN US | Information Technology | 0.930% | 47,481.00 | 98936J101 |
Wix.com Ltd | WIX US | Information Technology | 0.887% | 26,918.00 | M98068105 |
Anaplan Inc | PLAN US | Information Technology | 0.852% | 87,925.00 | 03272L108 |
Splunk Inc | SPLK US | Information Technology | 0.805% | 34,682.00 | 848637104 |
Avalara Inc | AVLR US | Information Technology | 0.793% | 36,920.00 | 05338G106 |
HubSpot Inc | HUBS US | Information Technology | 0.783% | 14,905.00 | 443573100 |
Palo Alto Networks Inc | PANW US | Information Technology | 0.775% | 15,544.00 | 697435105 |
Workday Inc | WDAY US | Information Technology | 0.710% | 23,340.00 | 98138H101 |
Match Group Inc | MTCH US | Communication Services | 0.671% | 32,552.00 | 57667L107 |
Nexon Co Ltd | 3659 JP | Communication Services | 0.667% | 158,157.00 | JP3758190007 |
Baidu Inc | BIDU US | Communication Services | 0.663% | 20,310.00 | 056752108 |
Fortinet Inc | FTNT US | Information Technology | 0.637% | 31,842.00 | 34959E109 |
Z Holdings Corp | 4689 JP | Communication Services | 0.558% | 604,677.00 | JP3933800009 |
Twitter Inc | TWTR US | Communication Services | 0.514% | 83,279.00 | 90184L102 |
Activision Blizzard Inc | ATVI US | Communication Services | 0.466% | 37,617.00 | 00507V109 |
Intuit Inc | INTU US | Information Technology | 0.461% | 9,088.00 | 461202103 |
Booking Holdings Inc | BKNG US | Consumer Discretionary | 0.432% | 1,493.00 | 09857L108 |
VMware Inc | VMW US | Information Technology | 0.317% | 17,217.00 | 928563402 |
eBay Inc | EBAY US | Consumer Discretionary | 0.297% | 39,255.00 | 278642103 |
Electronic Arts Inc | EA US | Communication Services | 0.260% | 13,691.00 | 285512109 |
USD CURNCY | USD CURNCY | 0.022% | 161,930.91 | ||
Ocado Group PLC | OCDO LN | Consumer Discretionary | 0.009% | 188,352.00 | 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.
O’Shares ETF Investments Funds are distributed by Foreside Fund Services, LLC. Foreside Fund Services, LLC is not affiliated with O’Shares ETF Investments or any of its affiliates.