ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Making the Case for Investing in Internet Giants
News
Share

Making the Case for Investing in Internet Giants

Max ChenNov 22, 2019
2019-11-22

Internet and e-commerce mega trends could impact the way consumers and companies conduct business, communicate and view entertainment, opening up an opportunity for ETFs to tap into a booming new industry in a digital age.

According to a recent O’Shares ETF Investments research paper, Investing in Internet and E-Commerce, developed countries are nearing internet adoption saturation. North America and Europe account for roughly 15% of the world’s population and are nearing full adoption at 89% and 88%, respectively. Asia and Africa on the other hand, have populations exceeding 4 billion and 1 billion, respectively, accounting for over 70% of the world’s population but have much lower adoption rates. Just over half of Asia is online and that proportion drops to ~40% for Africa.

“As Internet adoption rates in Asia and Africa converge with developed markets, growth in Internet and e-commerce will likely follow suit,” according to O’Shares.

Internet/Digital Technology, e-commerce and social media have changed the way people communicate, shop for clothes and groceries as well as consume news and entertainment.

Companies looking to advertise their products have recognized this secular shift and it is estimated that digital advertising in the U.S. will surpass all traditional forms for the first time in 2019, says O’Shares, adding that digital advertisements in the U.S. are estimated to reach nearly $130 billion in 2019 and surpass TV, radio and print combined for the first time. Representing less than half the of the market in 2018, they are estimated to grow nearly 60% to $172 billion by 2021 and make up over 60% of the U.S. Ad market.

“Secular trends in social media, digital advertising, digital entertainment and cloud have been a catalyst for growth in Internet and e-commerce companies,” according to O’Shares. “The number of people using social media to stay connected continues to grow. Companies have moved from traditional advertising in favor of digital methods. Video games, video-on-demand, music streaming and e-publishing have continued to underpin the growth of digital entertainment companies. Finally, ‘cloud’ has rendered conventional data warehouses virtually obsolete. These are just some of the many secular trends that drive Internet and e-commerce ‘Mega Trends.’”

As a way to ride this new mega trend, investors can look to a fund like the O’Shares Global Internet Giants ETF (OGIG B-). OGIG is a rules-based ETF designed to provide investors with the means to invest in some of the largest global companies that derive most of their revenue from the Internet and e-commerce sectors that exhibit quality and growth potential.

Some of OGIG’s top portfolio holdings include companies such as Alibaba, Amazon, Facebook, and Alphabet. Also amongst the index’s holdings are Chinese tech companies like YY, Baidu, and JD. For long-term investors, OGIG’s exposure to ex-US e-commerce and Internet companies is relevant and important.

Not surprisingly, e-commerce is a major driver of long-term potential for OGIG and rival Internet ETFs. OGIG’s structure provides ample leverage to compelling domestic and international e-commerce trends.

Click here to download the O’Shares research paper, Investing in Internet and E-Commerce.


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

Jun 07

Buy on the Dip Prospects: June 7 Edition

Jun 07

Single-Stock ETF Angle Could Attract Investor Interest

Jun 07

Market Wrap Recap - Investors Were Able to Take a Sigh of Relief

Jun 07

Top 5 ETFs for Investing in Artificial Intelligence

Jun 07

Declining Metal Prices Create Window of Opportunities

Jun 07

Direct Indexing Counters Greenwashing

Jun 07

Cryptocurrencies: Bitcoin Ends May Down 7.0%

Jun 07

VettaFi Viewpoints: Dave Nadig Talks Wellness With Dr. Pearlman

Jun 07

Goldman Sachs' New MarketBeta Total International Equity ETF

Jun 07

Gundlach: Buy Bonds, Not Stocks

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

JEPI

JPMorgan Equity Premium...

IYW

iShares U.S. Technology ETF

XLK

Technology Select Sector SPDR...

VUG

Vanguard Growth ETF

SMH

VanEck Semiconductor ETF

SCHD

Schwab US Dividend Equity ETF...


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X