Initial concerns that tariffs could derail tech stocks led to a sharp sell-off in April. However, the pullback proved temporary, as strong first-quarter earnings across the tech sector helped restore investor confidence.
Against this backdrop of ongoing uncertainty, the ALPS O’Shares Global Internet Giants ETF (OGIG) offers exposure to a diversified portfolio of global internet companies. OGIG tracks the O’Shares Global Internet Giants Index (OGIGX), which includes large global firms deriving a majority of their revenue from digital business models. The index employs a rules-based approach that considers both growth and quality metrics in its selection process. This means the ETF can benefit from continued growth in internet technology and e-commerce.
Exposure to Internet and AI Trends
According to YCharts, OGIG delivered a 25.31% return over the past year and 7.62% year-to-date. The fund’s portfolio is currently weighted 49.05% toward Information Technology. Each holding generates at least 50% of its revenue from internet-based operations, positioning the ETF to potentially benefit from broader adoption of AI technologies. Top holdings include Alphabet, Duolingo, Amazon, ServiceNow, Meta, and Microsoft.
A Global Take on Thematic Investing
OGIG can serve as an entry point to thematic investing. By concentrating on the world’s largest and most innovative companies, the fund taps into trends that are reshaping the global economy such as cloud computing, digital advertising, online retail, and enterprise AI.
By concentrating on the world’s largest and most innovative companies, the fund taps into trends that are reshaping the global economy such as cloud computing, digital advertising, online retail, and enterprise AI.
With $146 million in assets under management and an expense ratio of 0.48%, OGIG offers a cost-conscious option for investors seeking exposure to digital and AI-driven business models.
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.
For more news, information, and analysis, visit the ETF Building Blocks Channel.
