O’Leary’s O’Shares Introduces An ‘Internet Giants’ ETF
Todd Shriber, ETF Professor , Benzinga Staff Writer
June 06, 2018 9:36am
O’Shares ETF Investments, the exchange traded funds issuer founded by entrepreneur and “Shark Tank” star Kevin O’Leary, on Tuesday introduced the O’Shares Global Internet Giants ETF OGIG
The O’Shares Global Internet Giants ETF one five ETFs O’Shares recently filed plans for and could introduce in the weeks ahead.
The new Internet Giants ETF tracks the cap-weighted O’Shares Global Internet Giants Index. While that index weights components by market value, O’Shares employs the growth and quality factors.
OGIG “is a rules-based ETF designed to provide investors with the means to invest in some of the largest global companies that derive most of their revenue from the Internet and e-commerce sectors that exhibit quality and growth potential,” according to O’Shares.
Why It’s Important
As an Internet ETF, essentially all of OGIG’s 52 member firms hail from the technology and consumer discretionary sectors. The new ETF’s holdings have a combined market value of $4.45 trillion. OGIG features exposure to seven countries with the U.S. and China combining for about 86 percent of the rookie ETF’s geographic exposure.
The fund’s top 10 holdings contain an array of familiar Internet behemoth, including Alibaba Group Holding Ltd., Amazon.com, Inc., Facebook Inc., Netflix, Inc. and China’s JD.com Inc. Those stocks combine for about a quarter of OGIG’s weight.
OGIG could benefit from good timing. On Tuesday — the day the new ETF launched — three of its established rivals in the Internet ETF space hit all-time highs.
OGIG charges 0.48 percent per year, or $48 on a $10,000 investment. That makes the new O’Shares ETF five basis points less expensive than the largest Internet ETF listed in the U.S.
OGIG Fund Page | OGIG Holdings
|Name (As of 07/15/2019)||Country||Sector||Fund Weight|
|Alibaba Group Holding Ltd||CN||Consumer Discretionary||6.16%|
|Amazon.com Inc||US||Consumer Discretionary||6.15%|
|Tencent Holdings Ltd||CN||Communication Services||6.15%|
|Alphabet Inc||US||Communication Services||6.01%|
|Facebook Inc||US||Communication Services||5.84%|
|Microsoft Corp||US||Information Technology||4.11%|
|Netflix Inc||US||Communication Services||2.51%|
|Adobe Inc||US||Information Technology||1.91%|
|Meituan Dianping||CN||Consumer Discretionary||1.82%|
|salesforce.com Inc||US||Information Technology||1.80%|
|ServiceNow Inc||US||Information Technology||1.70%|
|MercadoLibre Inc||AR||Consumer Discretionary||1.61%|
|Shopify Inc||CA||Information Technology||1.61%|
|Elastic NV||US||Information Technology||1.51%|
|Twilio Inc||US||Information Technology||1.46%|
|Workday Inc||US||Information Technology||1.46%|
|Bilibili Inc||CN||Communication Services||1.43%|
|Pinduoduo Inc||CN||Consumer Discretionary||1.41%|
|Atlassian Corp PLC||GB||Information Technology||1.36%|
|Anaplan Inc||US||Information Technology||1.34%|
|Okta Inc||US||Information Technology||1.33%|
|Zillow Group Inc||US||Communication Services||1.31%|
|Snap Inc||US||Communication Services||1.27%|
|Zscaler Inc||US||Information Technology||1.27%|
|Splunk Inc||US||Information Technology||1.25%|
|Just Eat PLC||GB||Consumer Discretionary||1.17%|
|MongoDB Inc||US||Information Technology||1.17%|
|Zendesk Inc||US||Information Technology||1.17%|
|Coupa Software Inc||US||Information Technology||1.14%|
|2U Inc||US||Information Technology||1.13%|
|Trade Desk Inc/The||US||Information Technology||1.10%|
|Farfetch Ltd||GB||Consumer Discretionary||1.10%|
|Alibaba Pictures Group Ltd||CN||Communication Services||1.09%|
|GrubHub Inc||US||Consumer Discretionary||1.08%|
|Wayfair Inc||US||Consumer Discretionary||1.07%|
|DocuSign Inc||US||Information Technology||1.04%|
|Spotify Technology SA||SE||Communication Services||1.03%|
|Nutanix Inc||US||Information Technology||1.01%|
|Cargurus Inc||US||Communication Services||0.99%|
|JD.com Inc||CN||Consumer Discretionary||0.99%|
|Zynga Inc||US||Communication Services||0.97%|
|RingCentral Inc||US||Information Technology||0.93%|
|HubSpot Inc||US||Information Technology||0.90%|
|Etsy Inc||US||Consumer Discretionary||0.88%|
|Weibo Corp||CN||Communication Services||0.86%|
|Momo Inc||CN||Communication Services||0.86%|
|New Relic Inc||US||Information Technology||0.85%|
|NetEase Inc||CN||Communication Services||0.84%|
|Proofpoint Inc||US||Information Technology||0.79%|
|Autohome Inc||CN||Communication Services||0.74%|
|Palo Alto Networks Inc||US||Information Technology||0.74%|
|Zalando SE||DE||Consumer Discretionary||0.73%|
|Ctrip.com International Ltd||CN||Consumer Discretionary||0.73%|
|Baidu Inc||CN||Communication Services||0.71%|
|Tableau Software Inc||US||Information Technology||0.70%|
|ZOZO Inc||JP||Consumer Discretionary||0.69%|
|Dropbox Inc||US||Information Technology||0.56%|
|Twitter Inc||US||Communication Services||0.55%|
|58.com Inc||CN||Communication Services||0.55%|
|VMware Inc||US||Information Technology||0.55%|
|Match Group Inc||US||Communication Services||0.54%|
|Fortinet Inc||US||Information Technology||0.51%|
|Booking Holdings Inc||US||Consumer Discretionary||0.50%|
|Intuit Inc||US||Information Technology||0.50%|
|Temenos AG||CH||Information Technology||0.45%|
|Ocado Group PLC||GB||Consumer Discretionary||0.42%|
|Rakuten Inc||JP||Consumer Discretionary||0.39%|
|GoDaddy Inc||US||Information Technology||0.38%|
|Expedia Group Inc||US||Consumer Discretionary||0.35%|
|eBay Inc||US||Consumer Discretionary||0.20%|
|HONG KONG DOLLAR||Cash||-0.05%|
|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 Funds’ 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, the Funds’ 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 Funds’ 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 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 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. 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.
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.