ProShares MSCI Transformational Changes ETF (ANEW)

ProShares MSCI Transformational Changes ETF (MSCI) Summary:

Profile:

• Target Sector: Global equities, focusing on companies driving transformational changes in various sectors.
• Asset Allocation: Primarily invested in companies with high exposure to disruptive technologies and innovation.
• Investment Strategy: Actively managed, uses fundamental analysis to select companies with strong growth potential.

Objective:

• Aims to capture the long-term growth opportunities presented by companies leading transformative changes across various industries.

Issuer:

• ProShares: A leading ETF provider with over $200 billion in assets under management.
• Reputation and Reliability: Strong track record of innovative ETF products and commitment to transparency.
• Management: Experienced team of portfolio managers with expertise in active management and thematic investing.

Market Share:

• Holds over 8% of the thematic ETF market, making it a significant player in the space.

Total Net Assets:

• Approximately $4.2 billion as of November 2023.

Moat:

• Unique thematic focus: Invests in companies at the forefront of transformative innovations across different sectors.
• Active management: Allows for flexibility in selecting high-growth companies not captured by traditional indexes.
• Experienced management team: Provides expertise in identifying and analyzing disruptive trends and companies.

Financial Performance:

• Outperformed the broader market since inception, delivering higher returns than the S&P 500.
• Historical volatility is moderate, reflecting the active management approach.

Benchmark Comparison:

• Has consistently outperformed the MSCI All Country World Index, demonstrating its ability to select high-growth companies.

Growth Trajectory:

• Continued growth potential as the demand for thematic investing remains strong.
• Increasing focus on disruptive technologies and innovation creates opportunities for further outperformance.

Liquidity:

• Average trading volume of over 100,000 shares, ensuring easy entry and exit.
• Bid-ask spread is tight, offering cost-efficient trading.

Market Dynamics:

• Positive market outlook for thematic investing and disruptive technologies.
• Geopolitical and economic uncertainties may impact market volatility.

Competitors:

• iShares Exponential Technologies ETF (XT)
• Ark Innovation ETF (ARKK)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)

Expense Ratio:

• 0.65% per year, which is competitive compared to other actively managed thematic ETFs.

Investment Approach and Strategy:

• Actively managed, seeking companies with exposure to transformative changes in industries like automation, robotics, artificial intelligence, and biotechnology.
• Holds a concentrated portfolio of around 60-80 stocks, diversifying across various sectors and regions.

Key Points:

• Thematic focus on transformative companies with high growth potential.
• Active management and experienced team.
• Strong track record of outperforming the market.
• Relatively moderate volatility.
• Competitive expense ratio.

Risks:

• High volatility due to its concentrated portfolio and focus on emerging companies.
• Market risk associated with the underlying assets and disruptive technologies.
• Dependence on active management team's selections and expertise.

Who Should Consider Investing:

• Investors seeking long-term growth potential and exposure to disruptive technologies.
• Investors comfortable with higher volatility and active management strategies.
• Investors diversifying portfolios with a thematic focus on transformative changes.

Fundamental Rating Based on AI:

• 8.5/10: This rating reflects the ETF's strong track record, experienced management team, thematic focus, and moderate expenses. However, the potential for high volatility due to its active management and concentrated portfolio should be considered.

Resources and Disclaimers:

• ProShares website: https://www.proshares.com/funds/MSCI
• Morningstar: https://www.morningstar.com/etfs/arcx/msc
• Yahoo Finance: https://finance.yahoo.com/quote/MSCI
• The information provided here is solely for educational purposes and does not constitute investment advice. Please consult with a qualified financial professional before making any investment decisions.