Internet Giants ETF Launches
ETF.com Staff | June 05, 2018
O’Shares ETF Investments, the issuer headed by Kevin O’Leary, best known for his ABC “Shark Tank” fame, today launched an ETF focused on the largest, high-quality internet and ecommerce companies globally.
The O’Shares Global Internet Giants ETF (OGIG), listed on NYSE Arca, tracks a proprietary O’Shares index comprising 52 companies, with a total market capitalization of $4.45 trillion. The methodology looks to capture quality and growth names in the internet technology and e-commerce segments.
This is a growing area of the market other ETFs have accessed to varying degrees. Think funds such as the SPDR S&P Internet ETF (XWEB), which tracks an equal-weighted index of internet retail, software and services companies; the Global X Internet of Things ETF (SNSR); and the PowerShares NASDAQ Internet ETF (PNQI), to name a few. Each brings its own twist to the space.
OGIG’s list of top portfolio holdings is a who’s who of tech and e-commerce giants, led by Alibaba, Amazon, Facebook and Alphabet, each representing 6-6.5% of the portfolio. Securities are weighted by market capitalization modified by revenue growth, according to the issuer.
Tencent, Netflix and Microsoft are also in the top mix. OGIG is 75% allocated to information technology names, 24% to consumer discretionary and 1% to industrials.
From a country perspective, global-in-scope OGIG is heavily tilted toward U.S. stocks, altogether representing about 54% of the portfolio. China (31%), U.K., Japan, Canada, Germany, Argentina and Australia round out the country exposure.
OGIG costs 0.48% in expense ratio, or $48 per $10,000 invested. It’s O’Shares’ sixth U.S.-listed ETF.
Contact Cinthia Murphy at email@example.com
OGIG Fund Page | OGIG Holdings
|Name (As of 11/16/2018)||Country||Sector||Fund Weight|
|Alibaba Group Holding Ltd||CN||Consumer Discretionary||6.63%|
|Alphabet Inc||US||Communication Services||6.44%|
|Tencent Holdings Ltd||CN||Communication Services||6.41%|
|Facebook Inc||US||Communication Services||6.16%|
|Amazon.com Inc||US||Consumer Discretionary||5.71%|
|Microsoft Corp||US||Information Technology||4.26%|
|Netflix Inc||US||Communication Services||2.95%|
|MercadoLibre Inc||AR||Consumer Discretionary||2.24%|
|Shopify Inc||CA||Information Technology||2.13%|
|Adobe Inc||US||Information Technology||2.10%|
|salesforce.com Inc||US||Information Technology||2.01%|
|Twilio Inc||US||Information Technology||1.91%|
|ServiceNow Inc||US||Information Technology||1.88%|
|NetEase Inc||CN||Communication Services||1.86%|
|Weibo Corp||CN||Communication Services||1.78%|
|Workday Inc||US||Information Technology||1.71%|
|SINA Corp/China||CN||Communication Services||1.67%|
|Etsy Inc||US||Consumer Discretionary||1.62%|
|Atlassian Corp PLC||GB||Information Technology||1.61%|
|Delivery Hero SE||DE||Consumer Discretionary||1.53%|
|Snap Inc||US||Communication Services||1.46%|
|Spotify Technology SA||SE||Communication Services||1.44%|
|ZOZO Inc||JP||Consumer Discretionary||1.43%|
|Zendesk Inc||US||Information Technology||1.40%|
|Splunk Inc||US||Information Technology||1.35%|
|Proofpoint Inc||US||Information Technology||1.33%|
|JD.com Inc||CN||Consumer Discretionary||1.30%|
|Zillow Group Inc||US||Communication Services||1.26%|
|Momo Inc||CN||Communication Services||1.25%|
|2U Inc||US||Information Technology||1.22%|
|ASOS PLC||GB||Consumer Discretionary||1.22%|
|Baidu Inc||CN||Communication Services||1.20%|
|RingCentral Inc||US||Information Technology||1.15%|
|Nutanix Inc||US||Information Technology||1.14%|
|Wayfair Inc||US||Consumer Discretionary||1.11%|
|GrubHub Inc||US||Consumer Discretionary||1.09%|
|Ctrip.com International Ltd||CN||Consumer Discretionary||1.08%|
|Autohome Inc||CN||Communication Services||1.08%|
|Cargurus Inc||US||Communication Services||1.07%|
|Red Hat Inc||US||Information Technology||1.03%|
|Guidewire Software Inc||US||Information Technology||0.98%|
|DocuSign Inc||US||Information Technology||0.94%|
|Just Eat PLC||GB||Consumer Discretionary||0.92%|
|58.com Inc||CN||Communication Services||0.87%|
|Booking Holdings Inc||US||Consumer Discretionary||0.82%|
|Twitter Inc||US||Communication Services||0.79%|
|Dropbox Inc||US||Information Technology||0.78%|
|Zalando SE||DE||Consumer Discretionary||0.75%|
|Ultimate Software Group Inc/Th||US||Information Technology||0.75%|
|Match Group Inc||US||Communication Services||0.65%|
|Fortinet Inc||US||Information Technology||0.58%|
|Intuit Inc||US||Information Technology||0.57%|
|VMware Inc||US||Information Technology||0.49%|
|LINE Corp||JP||Communication Services||0.48%|
|Expedia Group Inc||US||Consumer Discretionary||0.46%|
|GoDaddy Inc||US||Information Technology||0.45%|
|Temenos AG||CH||Information Technology||0.44%|
|eBay Inc||US||Consumer Discretionary||0.39%|
|HONG KONG DOLLAR||Cash||0.00%|
|SOUTH KOREA WON||Cash||0.00%|
|NEW ZEALAND DOLLAR||Cash||0.00%|
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.
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 visit www.oshares.com to view or download a prospectus online. 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. The funds' 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, unless perfectly hedged, the 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. The funds' hedging strategies may not be successful, and even if they are successful, the funds' exposure to foreign currency fluctuations is not expected to be fully hedged at all times. See the prospectus for specific risks regarding the Fund.
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 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.
Past performance does not guarantee future results. Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of the 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. Shares are not individually redeemable and can be redeemed only in Creation Units. The market price of shares can be at, below or above the NAV. Brokerage commissions will reduce returns. 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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