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.

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 -

(Washington)

Janet Yellen shocked the markets recently in an interview where she praised the potential of higher inflation…see the full story on our partner Magnifi’s site

(New York)

The municipal bond demand has spiked to a near all-time high. Prices are indicative of that, but…see the full story on our partner Magnifi’s site

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(Washington)

Any advisor has likely read about Biden’s new tax proposals on the “wealthy”. We use quotes on that term because many of them would also apply to middle class families. One such policy which would hurt most heirs is Biden’s plan for taxing family businesses. As most know, Biden is planning to tax inherited assets on their original basis (not the basis at death). This will cause a big spike in taxes for many, especially in the case of inheriting businesses, as the basis of most businesses is zero dollars, since many are founded by parents and left to children. Consider an example of a business which Ernst & Young presented in a report. “…someone started a wine distribution company two decades ago. The business initially had no market value. When that founder dies in 2025, his daughter inherits the company, now worth $550,000 with annual revenues of $40,000.

Under current law, the company’s value for tax purposes would be “stepped up” to that new amount, and the daughter wouldn’t owe capital gains taxes on her inheritance. Next, say she sells the distributor five years later for $710,000, when its annual income has grown to $50,000 and she’s ready to cash out. Under current law, she would owe the 23.8% capital gains tax on its appreciation under her wing, or more than $38,000 ($710,000-$550,000 = $160,000; $160,000 x .238 = $38,080).

Under Biden’s proposal, she wouldn’t owe tax upon inheriting and running the business her father started — but neither would it get a stepped-up basis. Which means that when she eventually sells the company for $710,000, she would owe capital gains tax, at Biden’s higher rate, on its total gains since it started from zero. That’s a tax bill of more than $281,000 ($710,000 x .396 = $281,160). Under the White House’s plan, her tax bill is more than seven times higher. She can pay it over 15 years, at more than $18,700 a year, but may not have the cash from its sales.”

FINSUM: This is obviously a massive hike and a terrible burden for all but the wealthiest individuals. It is likely to cause debt for many, and a resulting fire sale in small businesses.