Despite concerns about a possible recession due to high interest rates, U.S. and global tech companies have continued to show resilience, particularly in the artificial intelligence sector. The S&P 500 has seen significant benefits from the success of tech firms, even beyond the AI realm. Internet companies worldwide present appealing opportunities for investors, making a global tech ETF like OGIG a valuable asset.
Launched in 2018, the ALPS O’Shares Global Internet Giants ETF (OGIG B-) charges a 48 basis point fee for its unique approach to global tech investing. The strategy employed by this ETF tracks the O’Shares Global Internet Giants Index, which focuses on internet-related companies with growth and quality attributes. By evaluating factors such as monthly cash burn rate and revenue growth rate, the index selects companies from the U.S., Europe, the Pacific basin, and emerging markets to include in its portfolio.
Over the last year, OGIG has provided investors with a return of 33.4%, according to data from SS&C ALPS Advisors. With holdings that include companies like MercadoLibre and Meituan from South America and China respectively, as well as established tech giants like Microsoft and Shopify, OGIG offers a diverse range of global tech firms under one umbrella.
For U.S. investors seeking tech exposure in their portfolios, OGIG may be an appealing choice. As domestic tech companies continue to be highly valued, a global perspective like that of OGIG could uncover new opportunities for growth. With its price trending above its 50-day simple moving average, the ETF shows strong momentum, indicating a promising outlook for investors interested in the tech sector. OGIG’s diverse holdings and track record of success make it a compelling option for those looking to bolster their tech holdings with a global perspective.