Last year, the expectation was that big tech would eventually make a comeback, and so far, it has. Investors may want to keep building on the tech rally by getting continued tech exposure as part of their portfolios.
The Nasdaq 100’s 14% year-to-date gain is evidence that investors are restoring their faith in big tech again. Even as the sector has been fraught with layoffs, investors expect big tech to eventually work out its issues regardless of what the U.S. Federal Reserve does with interest rate policy.
“The start of the year has already seen a nice bull move with tech stocks,” personal finance magazine Kiplinger noted.
Even if tech doesn’t make a full-fledged comeback in 2023, there’s still some upside to be had with the growth component inherent in the sector. The increased use of artificial intelligence (AI) and the proliferation of cloud computing can add growth to an investor’s portfolio because the reliance on technology won’t go away soon.
“More importantly, there are various secular megatrends that should power strong returns,” Kiplinger added. “These include cloud computing, artificial intelligence (AI), robotics, mobile and IoT (Internet-of-Things), just to name a few.”
The internet, in particular, got much focus during the apex of the COVID-19 pandemic. Government-mandated lockdowns forced consumers to head online in order to purchase goods as well as services.
That trend won’t be reversing anytime soon. Consumers and businesses will continue to rely on the internet as well as online-supported technologies to make purchases or, for the latter, run their core business operations.
Get Internet Growth Exposure in 1 ETF
Given the growth prospects of internet technology and the companies that derive their revenue from it, the question now is: Where can investors get exposure to this? Simply buying the stock of the Microsofts, Amazons, and Googles of the world will help, but there’s an easier way: the ALPS O’Shares Global Internet Giants ETF (OGIG).
The fund can accomplish exposure to the aforementioned “who’s who” of internet tech, but it also adds a diversification component with holdings in tech companies outside the U.S. Per its fund description, OGIG is designed to offer investors exposure to some of the largest global companies that derive most of their revenue from the internet technology and e-commerce business segments and exhibit above-average growth.
That global reach allows OGIG to search for opportunities in parts of the world where the internet has yet to make as large of an impact as it has in the U.S. Internet technology is a global phenomenon, and investors don’t want to miss out on international opportunities; OGIG makes sure that doesn’t happen.
For more news, information, and analysis, visit the ETF Building Blocks Channel.