Eq: Tech
(New York)
Any advisor likely already knows it, but it is worth repeating: ESG funds are troubling space. They are significantly more costly than traditional funds, have middling returns, and perhaps worst of all, these days they seem quite undifferentiated from conventional funds. One of the big problems in the space is that there is no universal definition of ESG or standard convention for defining ESG risks or parameters, so anyone can call anything “ESG”. For example, take a look at the top ten holdings of two funds, one a basic S&P 500 tracker, the other labeled “Large Cap ESG”, and you will see they have virtually no differences except that the ESG fund costs 40 bp at best and the conventional fund costs 9 bp.
FINSUM: Some people call ESG a pure marketing scam. To some extent that is true as it is pretty easy for fund providers to take advantage of ESG pricing without really doing anything under the hood. But at the same time, there is also genuine interest on the consumer and provider sides to expand opportunities in the space.
(New York)
The chip shortage of 2021 has been an ongoing saga that has benefited many of the largest manufacturers…see the full story on our partner Magnifi’s site
(New York)
Advisors likely know Global X as a leader in thematic investing—heck they practically invented the space! Well the know-how and expertise you know and love from their ETFs is available as part of a suite of model portfolios at Orion. In partnership with Orion Portfolio Solutions, Global has launched both an Equity Thematic Disruptors ETF Model Portfolio and five Core Series Models tailored to specific risk appetites. In Global X’s own words, the Equity Thematic Disruptors ETF Model Portfolio “Targets structural and long-term trends that transcend traditional sector investing and provides investors with access to potential growth opportunities”.
FINSUM: Exciting to see Global X bringing its edge to the model world. The Disruptors model seems like a one-stop shop to access cross-sector innovation.
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There may be a lot of noise around valuations and inflation, but ask yourself a question: do you think the tech sector is going to grow into a bigger part of the economy over the next few years? The vast majority of investors would say yes, and if you are in that camp, then it may make sense to commit a considerable part of your portfolio to the space. Inflation may rise, but the reality is that the fundamentals of the tech sector have been very healthy and have grown nicely. Don’t let short-term noise and anxiety distract from that.
With this in mind, check out O’Shares Global Internet Giants ETF (OGIG). The fund is at the forefront of helping advisors invest opportunistically in companies that are leading the economy’s digital transformation. Which means—you guessed it—these are high growth businesses.1 The fund’s constituent companies include those in the digital advertising, social media, e-commerce, and cloud services sectors. The average trailing twelve-month revenue growth2 for an OGIG3 constituent was 40%, versus 11% for the Technology Select Sector Index, and 22% for the Nasdaq 1004.
Over the last twelve months, OGIG outperformed traditional tech indexes by over 40%5 (in what was already a fantastic year), which speaks to its rules-based approach’s ability to select high growth, high appreciation stocks. The fund is also a way to invest in global growth, not just the US. If you want to invest in the Internet Giants of the future, look at OGIG.
|
|
QTD |
YTD |
1Y |
S/I |
|
OGIG (NAV) |
-4.22% |
-4.22% |
110.11% |
29.61% |
|
OGIG (Market Value) |
-3.98% |
-3.98% |
111.11% |
26.98% |
|
OGIG Index6 |
-4.09% |
-4.09% |
111.25% |
30.27% |
|
Nasdaq 1007 |
1.76% |
1.76% |
68.88% |
25.12% |
|
Technology Select Sector8 |
2.16% |
2.16% |
66.91% |
26.31% |
1. High growth businesses tend to be companies which have grown revenues, cash flows, and earnings faster than the market. Growth companies create value by continuing to expand reinvest their earnings for further expansion.Data as of 3/31/2021
2. Revenue growth is used as a measure of the increase or decrease of a company's sales. High Growth companies and revenue growth refer to the underlying characteristics of the fund's portfolio and does not represent or predict the performance of any fund.
3. Indexes are unmanaged and it is not possible to invest in an index.
4. Source: Bloomberg Finance L.P. Data as of 3/31/2021. Past performance is no guarantee of future results.
5. Bloomberg Finance L.P. Data as of 3/31/2021. Returns for periods more than 1 year are annualized. OGIG Inception Date: 6/5/2018. Investors cannot directly invest in an index. Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost.
6. OGIG Index: O’Shares Global Internet Giants Index.
7. Nasdaq 100: Modified capitalization weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ.
8. Technology Select Sector Total Return Index: The Technology Select Sector Index is a modified cap-weighted index. The index is intended to track the movements of companies that are components of the S&P 500 and are involved in the development or production of technology products. The index which serves as a benchmark for The Technology Select Sector SPDR FundXLK, was established with a value of 250 on June 30, 1998.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. For performance current to the most recent month-end, please visit www.oshares.com/ogig/#performance. Returns beyond 1 year are annualized. The total expense ratio is 0.48%. Click here for the fund's standardized returns.
Shares of the Funds are not individually redeemable and the owners of Shares may purchase or redeem Shares from each Fund in Creation Units only. The purchase and sale price of individual Shares trading on an Exchange may be below, at or above the most recently calculated NAV for such Shares.
Market Price returns are generally based on market value at 4:00PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded shares at other times. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV.
- This is sponsored content by O’Shares ETFs -
(New York)
It feels as though one week a month internet message boards collude to take on a stock…see the full story on our partner Magnifi’s site
(New York)
Cathie Wood’s Fintech ETF, ARK Innovation (ARKK), has had a rough couple of months. Most of ARK’s ETFs were in a similar position, but…see the full story on our partner Magnifi’s site