What’s driving the robust returns for the ALPS O’Shares Global Internet Giants ETF (OGIG)? The ETF has returned a powerful 31.2% return YTD, outperforming its ETF Database Category and Factset Segment Averages YTD. It’s also outperformed those metrics on both a three-month and a one-month basis. While global internal stocks have been a strong source of returns for much of the market overall, OGIG has three stocks that investors may not be totally familiar with that are worth looking at.
To start, the ETF weights ServiceNow, Inc. (NOW) at 2%, its fifth-highest-weighted holding behind the Metas (META) of the world. NOW works on a cloud computing platform to help manage workflows. The firm’s stock has risen 42.3% YTD, up $163 in price in that time. That spike has helped the stock recover from a dip between 2021 and 2022. NOW’s price momentum based on technical indicators remains strong, with its price well above both its 50 and 200-day Simple Moving Averages (SMAs).
See more: “Diversify With Global Internet Stocks in OGIG”
Next up just behind NOW stands Snowflake, Inc. (SNOW). Another stock that does appear in some other tech ETFs, SNOW also operates in cloud computing. Specifically, SNOW offers cloud-based storage and data analytics.
The firm’s stock is up 32.9% YTD but with stronger overall momentum over the last year than for NOW, up 25.7% over one year, too. SNOW also recently experienced a “golden crossover” in which its 50-day SMA rose above its 200-day SMA. SNOW has also benefitted this very week from analyst excitement around the firm’s projected partnerships and use of AI.
Finally, OGIG embraces the global internet stocks goal in its name with exposure to Meituan Dianping (MPNGY). Meituan offers more exposure to macro trends as a shopping platform for consumer products and retail services in China. While Meituan may not be offering the same technical indicators, it does benefit more from China’s rebound.
Holding Global Internet Stocks in OGIG
OGIG charges a 48 basis point fee to track the O’Shares Global Internet Giants Index. For those investors looking to add some robust returns, OGIG has much to offer. It also charges less for exposure to NOW, for example, than the ROBO Global Artificial Intelligence ETF (THNQ).
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