Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary

Print

| AAA

Could This Global Tech ETF Be the Soft Landing Play?

BY | ETF Database

10/09/2024 | 143 VIEWS

Related Symbols
OGIG

Somehow, some way, the U.S. economy appears on track to pull off a soft landing. Even when the Fed cut rates last month by a surprisingly large amount, significant doubts loomed. While there are still reasons for caution, as ever, last month’s jobs numbers showed continued economic health. Looking ahead, then, it may be worth considering a global tech ETF like OGIG, which has shined in recent weeks.See more: This Small-Cap ETF Sending Buy Signal Amid Rate Cut Glow The ALPS O’Shares Global Internet Giants ETF (OGIG B-), could appeal if a soft landing looms for a tech-driven U.S. economy. It combines exposure to key U.S. large caps in tech with exposure to foreign e-commerce names like MercadoLibre (MELI). The global tech ETF tracks the O’Shares Global Internet Giants Index for a 48 basis point (bps) fee. In doing so, it has returned 15% YTD and 35.4% over the last year, per data from SS&C ALPS Advisors. Looking at ETF Database data, the strategy has returned 12.2% over the last month. Those one month, one year, and YTD returns beat both OGIG’s ETF Database Category and Factset Segment averages. The fund looks for global internet and tech stocks, weighted by growth and quality factors. It considers attributes like monthly cash burn rate and revenue growth rate in its index. The global tech ETF selects its universe of potential investments from the 1,000 largest U.S.-listed firms. It also considers the 500 largest European, Pacific basin, and emerging market firms, respectively. It’s that combination of domestic and foreign exposures that can help OGIG set itself apart from other large tech index ETFs. A soft landing in the U.S. does not mean that all concentration risk from big tech has been avoided. By merging big foreign and U.S. names, OGIG could differentiate portfolios from a standard tech allocation. VettaFi LLC (“VettaFi”) is the index provider for OGIG, for which it receives an index licensing fee. However, OGIG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of OGIG. For more news, information, and analysis, visit the ETF Building Blocks Channel.

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.