The ALPS O'Shares Global Internet Giants ETF (OGIG) jumped 8.4% last week, making it the top-performing ALPS fund as a handful of technology and e-commerce stocks delivered double-digit gains, according to ETF Database. Key Takeaways: OGIG surged 8.4% last week as Oracle and DoorDash rallied on AI infrastructure and autonomous delivery technology developments.
The ALPS O'Shares Global Internet Giants ETF (OGIG) is capturing a shift in artificial intelligence investing from hardware spending to revenue generation as companies monetize AI through advertising platforms and data licensing, according to the fund's quarterly insights report. The internet giants ETF has returned 29.1% over three years, outpacing its category average of 24.2%.
In the world of exchange-traded funds, some investors tend to look at index-based ETFs as static alternatives to the more flexible active funds. However, that is not necessarily the case.
It seems like every year, the holiday shopping season starts earlier. Regardless of when consumers are inundated with related advertising, each holiday season brings with it investment implications.
Astute investors know the internet is a prime proving ground for various AI applications. There are deep intersections between this emerging technology and companies previously viewed as pure-play internet names.
ALPS O'Shares Global Internet Giants ETF is a buy to capture the surge in digital innovation, driven by AI, cloud computing, and e-commerce megatrends. The ETF offers global diversification, focusing on established internet giants like Microsoft, Amazon, and Alphabet for growth and stability. OGIG's low 0.48% expense ratio, solid performance, and balanced risk profile make it attractive versus more volatile tech ETFs like ARKW.
Despite some fits and starts among some of the marquee names in the group, internet stocks have delivered for investors this year. Just look at the ALPS O'Shares Global Internet Giants ETF (OGIG), which is higher by 16.61% year-to-date as of July 7.
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.
Recent retrenchment in the once-high-flying communications services and tech sectors may be the valuation reset/buying opportunity many market participants have been awaiting. Of course, potential rebounds among large- and mega-cap growth stocks won't be uniform across the space.
In the ever-growing ETF ecosystem, few fund categories are as popular as tech ETFs. Outside of the big, core index funds, tech ETFs offer exposure to a market-leading sector via the transparency, tax-efficient ETF vehicle.
ALPS O'Shares Global Internet Giants ETF Shares is a rules-based ETF focusing on large-cap internet and e-commerce companies with high growth potential. OGIG has outperformed the Invesco NASDAQ Internet ETF since its inception in 2018 but has lagged behind the broader Invesco QQQ Trust ETF. Despite its global focus, the Fund has shown higher volatility compared to its peers, with significant fluctuations in performance.
ALPS O'Shares Global Internet Giants ETF is rated as a hold due to its high valuation and more volatile nature compared to peers. OGIG has outperformed the market YTD but lags behind FDN, which has a stronger mix of top holdings and lower volatility. Despite strong recent performance, OGIG's high expense ratio and valuation metrics make it less attractive than peer funds like FDN and EBIZ.