O’Shares ETFs Q4 2020 Report:
Digital transformation of the U.S. economy is accelerating because the pandemic is forcing companies to change, fast. 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. Potential winners could include not just Amazon, but companies growing even faster that enable digital transformation by providing the digital survival tools in cyber-security, data, cloud and other B2B services.
New this Quarter:
- COVID-19 and Digital Transformation of the U.S. Economy
- “Stay-Play-Work-Shop” at Home Stocks
- OGIG vs. Traditional Tech Indexes: What Are Investors Missing?
Mega Trends
Long-term, transformative forces that can influence or shape business, economies and cultures. Internet and e-commerce mega trends may have a profound impact on the way consumers and companies conduct business, communicate and consume entertainment.
OGIG: +107% in 2020, Outperforming traditional Tech Indexes by over 50%
OGIG outperformed traditional tech indexes by over 50% in 2020. Performance was largely driven by “new tech” stocks not found in traditional tech as well as mid-size internet giants that have been growing even faster than the mega giants including the FANG stocks.
Source: Bloomberg Finance L.P. Data as of 12/31/2020. Returns for periods more than 1 year are annualized. OGIG Inception Date: 12/31/2020.
Investors cannot directly invest in an index. 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 standard performance and expenses, visit OGIG Fund Page.
COVID-19 and Digital Transformation of the U.S. Economy
The pandemic has accelerated the digital transformation of the the U.S. Economy.
E-commerce sales in the U.S. in the first three quarters of 2020 have grown to $582 billion, a growth rate of 32% vs. 2019. By comparison, the growth in 2019 vs. 2018 was 14%.
Source: U.S. E-commerce Sales During Q1 from Bloomberg Finance L.P. Data as of 12/31/2020.
Actual results may vary. The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund.
The “Tech” Stocks That Aren’t In Many Tech Indexes
The FANG stocks were either re-classified or were never in “Tech” to begin with.
Average Revenue Growth: Approximately 24%
Source: Bloomberg Finance L.P. Data as of 12/31/2020. Sales – Last FY: Most recent fiscal year revenue. *Sales Growth TTM: Trailing 12 months. For top ten holdings of the OGIG ETF, OGIG Fund Page. For informational purposes only. Not meant to represent the Fund.