It's difficult for investors to pick one technology to target long-term, according to "Shark Tank" judge and O'Shares ETFs Founder Kevin O'Leary. A solution for gaining exposure to many tech companies with one investment exists in the form of exchange traded funds.
Investors looking for exposure to the broader technology index are often faced with an unfavorable situation in which an ETF holds lesser-valued hardware names and overall slower growth companies, O'Leary said during a guest spot on CNBC's "Fast Money" Tuesday. To counter this unfavorable setup, O'Leary's firm launched the O'Shares Global Internet Giants ETF (NYSE: OGIG) which consists of only the largest global tech companies that derive most of their revenue from the internet and/or e-commerce, he said.
Why It's Important
All three ETFs stand out and offer investors "something different," he said. O'Leary's controlled ETF offers international exposure and includes global giants with large revenue growth profiles that aren't listed in American exchanges, like China's Tencent, he said.
The First Trust ETF is a "real domestic pure play" that doesn't include Apple Inc. (NASDAQ: AAPL). Only companies that generate at least 50 percent of their annual sales from the internet are included. This ETF is designed for investors who don't want exposure to the biggest of the big names in tech, O'Leary said.
The iShares Technology ETF offers exposure to a subset of technology stocks that include electronics, computer software and hardware, and information technology companies. The ETF is designed for investors who no longer want to buy the "big ugly indices anymore," O'Leary said.
O'Leary's O'Shares Introduces An 'Internet Giants' ETF
Kevin O'Leary's O'Shares Is Planning Five New ETFs, Including AI And Robotics Growth Funds
Photo by Dustin Blitchok.
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