Despite many predictions of recession from high rates, U.S. and global tech firms are showing surprising resilience. The S&P 500 has benefited significantly from tech firms riding a wave of AI positivity. That said, even outside of AI hype, internet firms across the world offer intriguing opportunities for investors. That’s where a global tech ETF like OGIG can play a helpful role.
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The ALPS O’Shares Global Internet Giants ETF (OGIG) launched in 2018. The global tech ETF charges a 48 basis point fee for its approach. The strategy tracks the O’Shares Global Internet Giants Index. In doing so, it looks for internet-related firms with growth and quality attributes.
The index’s operators define quality by factors like monthly cash burn rate and growth by revenue growth rate. It combines U.S., European, Pacific basin, and emerging market names to craft its portfolio. The global tech ETF has returned 33.4% over the last one-year period, per data from SS&C ALPS Advisors.
OGIG may make for a worthwhile option to get a mix of tech firms around the world. It includes names like MercadoLibre (MELI), the South American e-commerce platform, in addition to big Chinese firms like Meituan (MPNGY). Those join usual suspects like Microsoft (MSFT) but also domestic e-commerce names like Shopify (SHOP).
That global view could identify other opportunities that break out in the future. Many U.S. investors still want tech, but domestic tech firms remain very expensive. A strategy like OGIG that looks for future tech opportunities while diversifying away from the U.S. may be a worthwhile add to a portfolio. OGIG’s price has risen above its 50-day simple moving average, suggesting notable momentum. For those looking for more tech, OGIG could appeal.
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