Internet Giants ETF Launches

O’Shares ETF Investments, the issuer headed by Kevin O’Leary, best known for his ABC “Shark Tank” fame, today launched an ETF focused on the largest, high-quality internet and ecommerce companies globally.

The O’Shares Global Internet Giants ETF (OGIG), listed on NYSE Arca, tracks a proprietary O’Shares index comprising 52 companies, with a total market capitalization of $4.45 trillion. The methodology looks to capture quality and growth names in the internet technology and e-commerce segments.

This is a growing area of the market other ETFs have accessed to varying degrees. Think funds such as the SPDR S&P Internet ETF (XWEB), which tracks an equal-weighted index of internet retail, software and services companies; the Global X Internet of Things ETF (SNSR); and the PowerShares NASDAQ Internet ETF (PNQI), to name a few. Each brings its own twist to the space.

Holdings

OGIG’s list of top portfolio holdings is a who’s who of tech and e-commerce giants, led by Alibaba, Amazon, Facebook and Alphabet, each representing 6-6.5% of the portfolio. Securities are weighted by market capitalization modified by revenue growth, according to the issuer.

Tencent, Netflix and Microsoft are also in the top mix. OGIG is 75% allocated to information technology names, 24% to consumer discretionary and 1% to industrials.  

From a country perspective, global-in-scope OGIG is heavily tilted toward U.S. stocks, altogether representing about 54% of the portfolio. China (31%), U.K., Japan, Canada, Germany, Argentina and Australia round out the country exposure.

OGIG costs 0.48% in expense ratio, or $48 per $10,000 invested. It’s O’Shares’ sixth U.S.-listed ETF.

Contact Cinthia Murphy at [email protected]