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Global Internet Giants ETF (OGIG) Hits New 52-Week High

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For investors looking for momentum, O’Shares Global Internet Giants ETF (OGIG - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 120.8% from its 52-week low price of $20.48/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

OGIG in Focus

This ETF seeks to track the performance (before fees and expenses) of the O’Shares Global Internet Giants Index. It is a rules-based ETF designed to provide investors with the means to tap the largest global companies that derive most of their revenues from the Internet and e-commerce sectors that exhibit quality and growth potential. It has AUM of $412.5 million and charges 48 basis points (bps) in annual fees.

Why the Move?

Due to the coronavirus outbreak, consumers are opting for online retailers to purchase food items and other goods and are resorting to video streaming services and other modes of in-house entertainment. In line with the rising online shopping trend, customers are resorting to digital payments to clear their bills, while merchants and utility providers are advocating the same. Also, the pandemic has resulted in some changes in the lifestyle and preferences of people. Most of the surveys have found that people are opting for online shopping over visiting a brick-and-mortar store for their purchases of essential food items and supplies. Even as the global economy starts to reopen in phases and social-distancing restrictions are being eased, people are trying to minimize human-to-human contact. This is making funds like OGIG an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 101.84, which gives cues of further rally.

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