The past year has undoubtedly been one of immense change, and this sentiment has proven to be especially true in the world of technology and finance. The field of technology, which was already growing at a rapid pace prior to the pandemic, was thrown into an accelerated frenzy as a result of COVID-19. The systems in which both companies and individuals operate have undergone radical changes, and are creating broad mega-trends in many markets.
Given this growth, investors have been looking at new tech stocks in spaces such as e-commerce and digital software to build their portfolios. In 2020, e-commerce sales in the U.S. grew to $788 billion, an increase of 32% year-over-year.
U.S. e-commerce sales from Bloomberg Finance L.P. Data as of 3/31/2021.
Revenue growth in new tech is well illustrated through the O’Shares Global Internet Giants ETF (BATS: OGIG). While many of the biggest tech and digital companies did well last year, companies under $100B market cap generated over 80% of portfolio return in 2020. The OGIG ETF capitalized on these companies extremely well, posting a 107% portfolio performance in 2020. (such favorable performance was attributable to unusually favorable conditions that are likely not sustainable or may not recur).
Data as of 3/31/2021. OGIG expense ratio, 0.48%.
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 the original cost. Returns less than one year are not annualized. For the most recent month-end performance, please visit oshares.com. Inception date: 6/5/18
Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 OGIG Nasdaq 100 Technology Select Sector
Source: Bloomberg Finance L.P. Data as of 12/31/2020.
Performance numbers like these demonstrate the power of investing in new tech and focusing on revenue growth. Additionally, a rules-based approach like OGIG allows for a dynamic and adaptable response which may be crucial for keeping up with rapid change, and in the words of O’Shares chairman and co-owner Kevin O’Leary, "Digital transformation of the U.S. economy is accelerating because ...Full story available on Benzinga.com
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