Looking for new ways to approach the continued dominance of internet tech stocks? As last year’s standout firms continue to loom over countless investor portfolios, some investors may be looking to get more from those tech investments. A new view into the space from a global tech fund like OGIG, for example, could merit a closer look for those on the hunt.
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The ALPS O’Shares Global Internet Giants ETF (OGIG ), looks to global firms that fit into the internet tech stocks category. The strategy, which charges 48 basis points, tracks the O’Shares Global Internet Giants Index. In doing so, it focuses on internet-focused tech firms displaying both quality and growth characteristics. The ETF’s operators define quality based on metrics like monthly cash burn rate, while revenue growth rate speaks to growth. OGIG’s investments must receive more than half of their revenues from internet tech stocks or internet commerce.
OGIG's Global Internet Tech Stocks
What about the strategy, then, can provide a fresh view into leading tech stocks that make it worth adding on top of broad indexes? When constructing its index, the fund’s managers create a list of eligible stocks from the 500 largest European, Pacific Basin, and emerging markets-listed firms, in addition to the 1,000 largest U.S.-listed names.
Screening for those quality and growth factors, it can find foreign opportunities to help diversify away from just the U.S. Those foreign tech names, like MercadoLibre (MELI), benefit from some of the same tech macrotrends as U.S. firms do.
Taken together, that approach has helped OGIG grow 26.08% over the last one-year period, per SS&C ALPS data. That performance has helped the fund outperform the SPDR S&P 500 ETF Trust (SPY ) over the last one year, per YCharts. For those looking to add a new view into internet tech stocks, don’t ignore the case for OGIG.
For more news, information, and analysis, visit the ETF Building Blocks Channel.
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.
