O’Shares launches global internet giants ETF

Jun 7th, 2018 | By | Category: Equities

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O’Shares ETF Investments has launched the O’Shares Global Internet Giants ETF (OGIG US) on NYSE Arca, providing exposure to a global portfolio of high growth internet and e-commerce growth companies.

Internet Technology ETFs

OGIG provides exposure to a portfolio of global stocks of firms operating in the internet technology or e-commerce sectors.

Kevin O’Leary, chairman of O’Shares ETF Investments, commented, “Growth of internet and e-commerce companies is a global phenomenon driven by consumer spending, social media and the sharing economy but you need a rules-based, qualitative evaluation process to identify the companies with the strongest growth potential. That is what OGIG provides and why I’m investing in OGIG.”

OGIG tracks an index created in-house – the O’Shares Global Internet Giants Index – reflecting a large-cap growth-oriented portfolio of global stocks from two main business segments, internet technology and internet commerce.

Stocks are screened for above-average revenue growth (exceeding 30%) as well as strong cash reserves. Securities are weighted by market capitalization modified by revenue growth to further enhance the growth factor of the portfolio. Rebalancing and reconstitution occur on a quarterly and semi-annual basis respectively.

The resulting index currently consists of 52 equities, with a weighted average market cap of approximately $237 billion.

Stocks from the US make up over half (54.7%) of the exposure of the index and China almost a third (31.4%). The UK is the third largest country by weight at just 3.6%.

Three-quarters (75.2%) of the index exposure is dedicated to equities from the information technology sector with most of the remaining weight (23.9%) in consumer discretionary stocks.

The largest constituents are well-known names such as Alibaba (6.7%), Amazon (6.5%), Facebook (6.4%), Alphabet (6.0%) and Tencent Holdings (5.7%).

Connor O’Brien, CEO of O’Shares ETF Investments, said, “In designing OGIG, it was important for us as fundamental investors to ensure we identified high quality companies that are growing top line revenues exponentially, are profitable and have quality balance sheets to potentially sustain their growth. Of the 7.5 billion population, only half are on the internet, we believe this provides a tremendous growth opportunity.”

OGIG has an expense ratio of 0.48%.

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