Recent retrenchment in the once-high-flying communications services and tech sectors may be the valuation reset/buying opportunity many market participants have been awaiting. Of course, potential rebounds among large- and mega-cap growth stocks won’t be uniform across the space. That confirms the difficulty in stock-picking. But investors looking to play such a rebound can do so in efficient fashion thanks to ETFs like the ALPS O’Shares Global Internet Giants ETF (OGIG ).
OGIG, which follows the O’Shares Global Internet Giants Index, has offered some level of durability amid growth stock turbulence. Since the start of 2025, the ALPS ETF is beating the Nasdaq-100 Index (NDX) by about 530 basis points. One reason for that significant gap in favor of OGIG is that as the ETF’s name implies, its selection universe isn’t confined to the U.S. So it’s able to hold some China internet names, several of which are setting blistering paces this year.
More OGIG Perks
For investors looking to position for a potential bounce-back by internet stocks, OGIG is a credible option due to what it has and what it excludes.
Regarding the former, the ETF is allocated to some analysts’ favorite internet stocks. For example, JPMorgan recently named Facebook parent Meta Platforms (META) and Spotfiy (SPOT) as two of its preferred internet stocks. Meta is OGIG’s largest holding, while Spotfify resides just outside the ETF’s top 10 components.
“By subgroup, JPMorgan sees companies involved with rides and food, cloud services, and streaming subscriptions as those relatively more resistant to a tougher macro environment,” reported Investopedia.
OGIG features significant cloud computing exposure by way of stakes in Microsoft (MSFT) and Amazon (AMZN), among others. Likewise, the ETF’s exposure to subscription-driven stocks is impressive thanks to holdings such as Spotify, Netflix (NFLX) and Duolingo (DUOL), just to name a few. The ETF is also positioned to benefit from the themes of increasing food delivery and ride-share demand.
Fortunately, OGIG is also lightly exposed to subgroups that could be vulnerable should macroeconomic conditions weaken. Those include online travel sites and dedicated e-commerce firms.
Travel expenditures are the epitome of discretionary spending. JPMorgan observes “the secular growth potential is more limited relative to other Internet verticals.” It added that there’s a “strong correlation between volume & pricing growth and GDP growth.”
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