Stay at Home Theme Could Prove Potent For This Internet ETF
by TOM LYDON on MARCH 24, 2020
With large states, such as California and New York, implementing shelter-in-place policies, some analysts and market observers believe internet retailers and related companies are poised to benefit, potentially providing an assist to ETFs such as the Global Internet Giants ETF (OGIG).
According to O’Shares, 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.”
OGIG, which turns two years old in June, is leveraged to the “staying in” theme in both the U.S. and China as Amazon.com (NASDAQ: AMZN), Alibaba (NYSE: BABA) and Tencent Holdings (OTC: TCEHY) are among the fund’s top 10 holdings.
“The Coronavirus (COVID-19) outbreak and recent market volatility is likely stressful for many people,” said O’Shares in a recent note. “As people avoid unnecessary travel and public gatherings, they may turn to e-commerce and digital entertainment companies to shop and relax in the comfort of their homes.”
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.
Netflix (NASDAQ: NFLX), another example of a stay at home stock, is also among OGIG’s top 10 holdings.
“The world’s leading internet streaming company offering TV shows and movies in a variety of genres and languages. Over 160 million subscribers worldwide,” according to O’Shares research.
Observing OGIG
Not surprisingly, e-commerce is a major driver of long-term potential for OGIG and rival Internet ETFs. OGIG’s structure provides ample leverage to compelling domestic and international e-commerce trends.
“Online commerce and digital entertainment platform. It is estimated that over 80% of U.S. households have a Prime account,” according to O’Shares research on Amazon.
Also amongst the index’s holdings are Chinese tech companies like YY, Baidu, and JD. For long-term investors, OGIG’s exposure to ex-US e-commerce and Internet companies is relevant and important.
That international exposure is a critical difference-maker when evaluating OGIG against domestic Internet ETFs and a trait that explains OGIG’s out-performance of legacy funds in the category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
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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 |