In the ever-growing ETF ecosystem, few fund categories are as popular as tech ETFs. Outside of the big, core index funds, tech ETFs offer exposure to a market-leading sector via the transparency, tax-efficient ETF vehicle. What’s more, given their thematic nature, tech ETFs can provide a useful option to tack onto an existing portfolio. The tech ETF OGIG, for example, could present a standout candidate in that category to start 2025.
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The ALPS O’Shares Global Internet Giants ETF (OGIG ) is off to a hot start in 2025. The tech ETF has returned 13.29% YTD, per YCharts data. That far outpaces the S&P 500’s 3.26% return YTD, according to YCharts. That performance, despite growing uncertainty in tech, speaks to the continued upside available in technology companies. The strategy is sending a buy signal, according to its tech chart on YCharts, as well, with its price above both its 50- and 200-day simple moving averages.
OGIG’s ability to invest in global equities and firms can help set it apart from many U.S.-heavy funds. Charging a 48 basis point fee, the fund invests in global internet and tech firms exhibiting growth and quality characteristics. Specifically, its managers define quality primarily by monthly cash burn rate. Growth is defined by revenue growth rate.
That focus on quality combined with revenue growth can help OGIG avoid potentially problematic tech firms. With valuations red hot, helping drive concentration risk, identifying firms with stronger quality attributes can help avoid potential pitfalls.
Looking ahead, while tariffs and steady, higher rates loom, a tech ETF like OGIG could offer a strong alternative to Magnificent Seven exposure alone. For those looking for new ETF additions, OGIG may provide a compelling case.
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VettaFi LLC (“VettaFi”) is the index provider for OGIG, for which it receives an index licensing fee. However, OGIG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of OGIG.
