ALPS O'Shares Global Internet Giants ETF

OGIG

Market cap $114M

The debate over whether artificial intelligence has entered bubble territory has reached a fever pitch. For this edition of Bull vs Bear, writers Nicholas Peters-Golden and DJ Shaw discuss the disconnect between infrastructure spending and software revenue.

Key Takeaways OGIG capped Meta and Alphabet at 6%, down from 7.37% and 7.25% respectively. The fund added Synopsys and Constellation Software while dropping nine holdings including The Trade Desk.

The ALPS O'Shares Global Internet Giants ETF (OGIG) is capturing a shift in artificial intelligence investing from hardware spending to revenue generation as companies monetize AI through advertising platforms and data licensing, according to the fund's quarterly insights report. The internet giants ETF has returned 29.1% over three years, outpacing its category average of 24.2%.

In the world of exchange-traded funds, some investors tend to look at index-based ETFs as static alternatives to the more flexible active funds. However, that is not necessarily the case.

It seems like every year, the holiday shopping season starts earlier. Regardless of when consumers are inundated with related advertising, each holiday season brings with it investment implications.

Astute investors know the internet is a prime proving ground for various AI applications. There are deep intersections between this emerging technology and companies previously viewed as pure-play internet names.

ALPS O'Shares Global Internet Giants ETF is a buy to capture the surge in digital innovation, driven by AI, cloud computing, and e-commerce megatrends. The ETF offers global diversification, focusing on established internet giants like Microsoft, Amazon, and Alphabet for growth and stability. OGIG's low 0.48% expense ratio, solid performance, and balanced risk profile make it attractive versus more volatile tech ETFs like ARKW.

Despite some fits and starts among some of the marquee names in the group, internet stocks have delivered for investors this year. Just look at the ALPS O'Shares Global Internet Giants ETF (OGIG), which is higher by 16.61% year-to-date as of July 7.

Initial concerns that tariffs could derail tech stocks led to a sharp sell-off in April. However, the pullback proved temporary, as strong first-quarter earnings across the tech sector helped restore investor confidence.

Recent retrenchment in the once-high-flying communications services and tech sectors may be the valuation reset/buying opportunity many market participants have been awaiting. Of course, potential rebounds among large- and mega-cap growth stocks won't be uniform across the space.