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How To Invest In Historic Tech Growth

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How To Invest In Historic Tech Growth

O’Shares Investments, a provider of quality ETFs for long-term wealth accumulation and management, announced its O’Shares Global Internet Giants ETF (NYSE: OGIG) with over $200 million in assets under management, successfully outperformed the Nasdaq-100 stock index by over 25%.

As part of the development, O’Shares CEO Connor O’Brien spoke with Benzinga on how investors can leverage OGIG as a liquid vehicle to gain exposure in the greatest period of technology growth in history.

About O’Shares And OGIG: O’Shares was founded by businessman and entrepreneur Kevin O’Leary, alongside O’Brien, in an effort to offer investors access to quality, financially sound companies.

The firm’s flagship investment vehicles include O’SHares U.S. Quality Dividend ETF (NYSE: OUSA), O’Shares U.S. Small Cap Quality Dividend ETF (NYSE: OUSM), and O’Shares Europe Quality Dividend ETF (NYSE: OEUR), which offer exposure to large- and small-cap companies with strong measures for profitability, balance sheet strength, as well as dividend coverage and growth.

After finding success in the ETF industry, O’Shares recently expanded into the technology sector upon noticing that the big-name technology companies weren’t growing as fast.

“The companies that were growing fast were not in the tech-sector definition,” the CEO said. “So, OGIG is an index we’ve developed in order to create a way to own the companies that are tech-driven.”

More than two-thirds of the OGIG digitally-driven portfolio allocation is not even a part of the traditional tech-sector definition.

“OGIG is designed to score companies and select them if they have strong profitability, balance sheets, and revenue growth,” O’Brien said. “The revenue growth rate across the OGIG portfolio is 38%, on a trailing 12-month basis. Whereas, for the S&P or tech-sector, as you traditionally find, it may be even 10%.”

The Digital Transformation: In light of the global economic shutdown as a result of COVID-19 coronavirus restrictions, businesses shut down and millions were unemployed. Despite the near-term economic impact, past crises have onset the emergence of lasting innovation and growth.

“Digital transformation of the U.S. economy is accelerating because the pandemic is forcing companies to change, fast,” said Kevin O’Leary, Chairman of O’Shares ETFs. “The U.S. economy, we call it ‘America 2.0’, could get six years of digital transformation packed into six months, with companies adopting technology, selling more directly to customers, and expanding their margins.”

Beneficiaries of the COVID-19 crisis, according to O’Leary, are those companies providing a platform for continued digital transformation, such as cyber-security, data, cloud, among other B2B services.

“There is money. The Fed and Congress have put trillions of dollars into the economy to make up for the lost jobs,” said O’Brien. “More of that money is going to the digital channels, less is going through traditional sales channels.”

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The O’Shares thesis has panned out; consumers have changed the way they spend, directing much of the federal stimulus into channels supported by the companies that make up OGIG.

“What we found from our research is that the majority of the stocks in the traditional indexes, whether it’s S&P or Nasdaq, had negative revisions on both revenue and earnings, whereas the stocks in OGIG experienced more upward revisions,” O’Brien added.

“Do you want to invest in those that are getting downgraded, that are seeing sales expectations cut down, or do you want to invest in those that are seeing sales expectations improve?”

To learn more about diversifying your portfolio with companies leading the digital transformation, visit O’Shares.com.

Photo by Bongkarn Thanyakij from Pexels.

 

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