The much-dreaded earnings season has arrived, but somewhat surprisingly, the results haven’t been as bad as initially feared. Whether that’s due to banks not taking hits as severe as initially feared or ongoing consumer strength, earnings were supposed to be a primary indicator that a recession is on the way. However, with that narrative deferred, it may be worth preparing for internet-tied firms’ earnings with a global internet ETF like the (OGIG ).
Tech names, which took some big hits lats year, have been one of the central pillars of the bifurcated market environment full of looming risk that’s also seen a potent S&P 500 rally to start the year. Tech names made newsworthy layoffs last year that may have contributed to investor perception, while investors could also still be in the mindset of looking for growthier names, given their dominance over the last few years prior to the Fed’s rate hikes.
Whatever the case, it may be worth finding the appropriate ETF to get the right exposure to the space in advance of some of the big names hitting the earnings wire next week. OGIG could be the global internet ETF best positioned to do so, thanks to how it weights and selects the various internet-related firms in its holdings.
OGIG tracks the O’Shares Global Internet Giants Index and invests in an index of global internet and tech stocks, selected for and weighted by quality and growth factors like monthly cash burn rate and revenue growth rate, respectively. OGIG builds its universe of eligible stocks from the 100 largest U.S.-listed firms, the 500 largest European firms, the 500 largest Pacific basin firms, and the 500 largest emerging markets companies.
OGIG has performed well over the last month, too, outperforming peer strategies like the (XNTK ) 3.4% to 2.8% in that time, according to YCharts, as well as outperforming the (SOCL ) and its 1.9% return. Holding firms as key and varied as (GOOGL) and (MPNGY), OGIG may be one to watch for a potentially positive earnings run in.
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