OGIG’s Global Internet Giants Outperform in January on AI Advancement

• Last month, the ALPS | O’Shares Global Internet Giants ETF (OGIG) surged 8.57%, materially outpacing broad US tech indices on the back of a strong quarterly earnings backdrop and broad strength within OGIG’s globally diversified portfolio of internet technology and artificial intelligence (AI) beneficiaries. 
  
  
• Secular tailwinds drove OGIG’s global Information Technology names (50.82% weight*) higher in January, with several names benefitting from the release of China’s DeepSeek AI agent that allegedly showed better compute speeds than US peers while using less processor hardware. Authentication software solution provider, GitLab Inc. (GTLB, 1.62% weight*), gained over 29% last month on continued momentum from its Information AI agent, PubSec, which will benefit from DeepSeek’s open-source AI with a large opportunity to deploy in government organizations. Also rising on generative AI exposure, Cloudfare, Inc. (NET, 1.78% weight*), jumped 28.53% as analysts expect a solid Q4 earnings report on strong growth in its AI inference capabilities for server load balancing, along with its Workers AI developer platform. Similarly, Atlassian Corp. (TEAM, 1.52% weight*) rallied over 26% last month after raising full-year (FY) forecasts on strong growth in its enterprise cloud and data center segments as it has infused AI onto its platform to help cross-collaboration across an organization.
  
  
• Among OGIG’s Communication Services allocation (24.58% weight*), selective exposure of US mega-cap companies benefitted the Fund in January. Meta Platforms, Inc. (META, 6.02% weight*) gained 17.71% last month on its open-source AI approach that will benefit from DeepSeek’s AI, Netflix, Inc. (NFLX, 1.73% weight*) gained 9.59% last month on its largest quarterly subscriber increase in history, and Alphabet Inc. (GOOGL, 6.24% weight*) rallied 7.78% on its CEO’s expectations for its Gemini AI chatbot to be used by 500 million people by the end of 2025, surpassing all others. 
  
  
• Flying under the radar as AI topics overloaded news outlets, online gaming service provider, Roblox Corp. (RBLX, 1.41% weight*), gained nearly 23% last month following positive analyst commentary for an expected increase in revenues from advertising and 20%-plus user engagement growth. Also riding the wave of increasing subscriber growth, audio streaming platform, Spotify Technology SA (SPOT, 1.56% weight*), rallied 22.61% in January following monetization efforts, including price increases, advertising exposure and cost cuts that are expected to increase its margins materially and grow the platform’s 640 million monthly active user base.

“You can find AI outside of the US, and the valuation of some of the corps within the Nasdaq are quite elevated, making them quite vulnerable to something very difficult to anticipate … We need to recognize that in China you can find the equivalent to some of the Nasdaq companies, simply with multiples not at 40 but more like 10, which is a significant valuation difference.”

– Florian Ielpo, Head of Macro Research, Lombar Odier Investment Managers, January 27, 2025

OGIG: Investing for the AI Arms Race Requires a Global Allocation 

• The start of 2025 coincided with an AI-related shock to markets, with Chinese AI startup, DeepSeek, releasing a more efficient open-source AI model at supposedly a fraction of the cost and compute power, relative to the multi-billion-dollar large language models (LLMs) produced by US companies. Additionally, China-based Alibaba Group (BABA, 0.88% weight*) subsequently stated that their AI model, Qwen 2.5-Max, had outperformed all other AI agents, including DeepSeek. Importantly, the impact on market-darling Nvidia (NVDA, not in OGIG), which has led US large-cap technology stock returns, is such that aggressive predictions of demand for Nvidia’s AI graphic processing units (GPUs) now have precarious assumptions to overcome to justify such high valuations. In turn, this has made US technology stocks focused on AI offerings vulnerable to global alternatives.  
  
  
• For investors, event-driven risk and volatility in broad-based US technology indices can make for sleepless nights. With AI being the driving force of multiple expansion on technology-focused stocks as investors digest a daily current of AI advancement news, a global allocation to tech leaders without the heavy concentration of US mega-cap stocks is timely and prudent. The ALPS | O’Shares Global Internet Giants ETF (OGIG) provides exposure to AI and internet technology’s current and new potential leaders on a global scale, without the heavy concentration risk of expensive mega-cap stocks currently propping up broad-based US indices. 

• OGIG’s globally diversified technology portfolio exhibits a much higher ex-US weight of technology names relative to major US technology indices, with less concentration risk among its top 10 holdings and the US Magnificent 7 stocks. 
  
  
• OGIG’s direct internet exposure, with all holdings deriving at least 50% of its revenue from internet activities, is set to generate strong future earnings growth as the AI theme broadens from US tech, semiconductors and internet search to global companies and other industries, such as Software Systems and Application Software.

Source: Bloomberg L.P. and SS&C ALPS Advisors, cumulative performance as of 01/31/2025 and annualized performance as of 12/31/2024

Performance data quoted represents past performance. Past performance is no guarantee of future results so that shares, when redeemed, may be worth more or less than their original cost. The investment return and principal value will fluctuate. Current performance may be higher or lower than the performance quoted. For current month-end performance call 1-866-759-5679 or visit www.alpsfunds.com. Performance includes reinvested distributions and capital gains.

Market Price is based on the midpoint of the bid/ask spread at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times.

Performance data prior to 06/21/2022 reflects the performance of the Fund as managed under the OSI ETF Trust.

Fund inception date: 06/05/2018, date reflects the commencement of investment operations.

Total Operating Expenses: 0.48%

* Weight in OGIG as of 01/31/2025

Top 10 Holdings

As of 01/31/2025, subject to change

Important Disclosures & Definitions

An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, call 1-866-759-5679 or visit www.alpsfunds.com. Read the prospectus carefully before investing.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemable.

Performance data quoted represents past performance. Past performance is no guarantee of future results; current performance may be higher or lower than performance quoted.

All investments are subject to risks, including the loss of money and the possible loss of the entire principal amount invested. Additional information regarding the risks of this investment is available in the prospectus.

Concentration in a particular industry or sector will subject the Fund to loss due to adverse occurrences that may affect that industry or sector. The Fund may use derivatives which may involve risks different from, or greater than, those associated with more traditional investments. A Fund’s emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform the market. Also, a company may reduce or eliminate its dividend after the Fund’s purchase of such a company’s securities. 

Companies involved with internet technology and e-commerce are exposed to risks associated with rapid advances in technology, obsolescence of current products and services, the finite life of patents and the constant threat of global competition and substitutes.

The Fund employs a “passive management” - or indexing - investment approach and seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Unlike many investment companies, the Fund is not “actively” managed. Therefore, it would not necessarily sell or buy a security unless that security is removed from or added to the underlying index, respectively.

Magnificent 7: a group of seven high-performing and influential stocks in the technology sector including Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta.

NASDAQ 100 Index: one of the world’s preeminent large-cap growth indexes. It includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization.

O’Shares Global Internet Giants Index: a rules-based index intended to give investors a means of tracking stocks exhibiting quality and growth characteristics in the internet technology and e-commerce business segments and pass screens for gross margin and cash burn sustainability. Companies included in OGIGX derive at least 50% of their revenues from a) internet technology companies whose principal business is to provide the technologies that support internet commerce; and b) internet commerce companies whose principal business is to sell products and services via the internet.

S&P 500 Information Technology Index: comprises those companies included in the S&P 500 that are classified as members of the GICS information technology sector.

One may not invest directly in an index.

ALPS Advisors, Inc., registered investment adviser with the SEC, is the investment adviser to the Fund. ALPS Advisors, Inc. and ALPS Portfolio Solutions Distributor, Inc., affiliated entities, are unaffiliated with O’Shares Investments.

ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Fund.

Not FDIC Insured • No Bank Guarantee • May Lose Value

OUS000387  05/31/2025