O’Shares ETFs
Q3 2020 Report:
Investing in Internet &
E-commerce
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”.

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?

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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.

COVID-19 and Digital Transformation of the U.S. Economy

The pandemic has accelerated the digital transformation of the the U.S.

E-commerce sales in the U.S. through the first quarter 2020 have grown to $160B, a growth rate of 15% vs. 2019. By Comparison, Q1 growth in 2019 vs. 2018 was 12%.

E-commerce sales are estimated to grow to over $700 billion in 2020.1

Source: U.S. E-commerce Sales During Q1 from Bloomberg Finance L.P. Data as of 6/30/2020.
1. 2020 U.S. E-Commerce Sales Estimate from: Emarketer.com.
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.

What’s Missing From Generic Tech Indexes?

The Technology sector underwent changes in September of 2018, as the Global Industry Classification System (GICS) re-categorized many “tech” stocks.

As a result, some traditional Tech indexes no longer include some fast-growing tech-driven, tech-enabled companies.

Investors turning to traditional Tech indexes for growth, may want to look under the hood.

Source: Bloomberg Finance L.P. Data as of 06/30/2020. 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.

Stocks for the
Stay-at-Home Economy

Change is coming, due to the global health crisis, and investors should take notice. Many more people are choosing or are forced to “stay-play-work-shop” at home, accelerating important investment trends.

2020 is becoming a tipping point for the way people and their employees learn the efficiencies of the “at-home” trend. Less time is being wasted commuting. Leveraging technology for teamwork on product development, sales and more is gaining more importance. Less time is being spent on shopping malls, parking lots and grocery stores, and you can get what you need by shopping online.

This trend may accelerate the growth of companies in internet technology services companies that enable consumers to shop, play and work from home.

‘Work-From-Home’ Cloud-Based Software-as-a-Service (SaaS) Companies

The COVID-19 pandemic has many people staying indoors and working from home. The following companies offer online cloud-based communication and collaboration tools to make sure people working from home can stay productive.

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. Short-term performance may often reflect conditions that are likely not sustainable, and thus such performance may not be repeated in the future.

Source: Bloomberg Finance L.P. Data as of 6/30/2020. Forward Revenue Gr. Includes average of 1Y and 2Y forward revenue growth. FY: Fiscal Year. For top ten holdings of the OGIG ETF, see OGIG Fund Page
Past performance does not guarantee future results. For informational purposes only. Not meant to represent the Fund.

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