O'Leary's O'Shares Introduces An 'Internet Giants' ETF

O'Shares ETF Investments, the exchange traded funds issuer founded by entrepreneur and “Shark Tank” star Kevin O'Leary, on Tuesday introduced the O’Shares Global Internet Giants ETF OGIG.

The O’Shares Global Internet Giants ETF one five ETFs O'Shares recently filed plans for and could introduce in the weeks ahead.

What Happened

The new Internet Giants ETF tracks the cap-weighted O’Shares Global Internet Giants Index. While that index weights components by market value, O'Shares employs the growth and quality factors.

OGIG “is a rules-based ETF designed to provide investors with the means to invest in some of the largest global companies that derive most of their revenue from the Internet and e-commerce sectors that exhibit quality and growth potential,” according to O'Shares.

Why It's Important

As an Internet ETF, essentially all of OGIG's 52 member firms hail from the technology and consumer discretionary sectors. The new ETF's holdings have a combined market value of $4.45 trillion. OGIG features exposure to seven countries with the U.S. and China combining for about 86 percent of the rookie ETF's geographic exposure.

The fund's top 10 holdings contain an array of familiar Internet behemoth, including Alibaba Group Holding Ltd. BABA, Amazon.com, Inc. AMZN, Facebook Inc. FB, Netflix, Inc. NFLX and China's JD.com Inc. JD. Those stocks combine for about a quarter of OGIG's weight.

What's Next

OGIG could benefit from good timing. On Tuesday -- the day the new ETF launched -- three of its established rivals in the Internet ETF space hit all-time highs.

OGIG charges 0.48 percent per year, or $48 on a $10,000 investment. That makes the new O'Shares ETF five basis points less expensive than the largest Internet ETF listed in the U.S.

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Photo by Dustin Blitchok.