ProShares MSCI Transformational Changes ETF (ANEW)ANEW

ProShares MSCI Transformational Changes ETF (ZTRN) Overview

Profile:

The ProShares MSCI Transformational Changes ETF (ZTRN) focuses on companies expected to benefit from significant long-term trends impacting the global economy. It utilizes a quantitative model to select firms aligned with these trends, emphasizing disruptive innovation, demographic shifts, climate change, and resource scarcity. ZTRN doesn't rigidly adhere to sector classifications, aiming to capture opportunities across various industries.

Objective:

The primary investment goal of ZTRN is to achieve long-term capital appreciation by investing in companies positioned to benefit from transformative global trends.

Issuer:

ProShares is a leading provider of exchange-traded funds (ETFs) with a diverse product lineup covering various asset classes and investment strategies. It is a subsidiary of ProShares Trust, a registered investment company under the Investment Company Act of 1940.

Reputation and Reliability:

ProShares has a strong reputation for innovation and providing investors with unique and effective ETF solutions. The firm has won numerous awards and accolades for its products and services, demonstrating its commitment to quality and excellence.

Management:

The ProShares investment team consists of experienced professionals with diverse backgrounds in finance, economics, and quantitative analysis. They are responsible for developing and managing the firm's ETF strategies, including ZTRN.

Market Share:

ZTRN holds a relatively small market share within the broader thematic ETF category. However, it has experienced significant growth in recent years, reflecting the increasing investor interest in capturing opportunities presented by transformative trends.

Total Net Assets:

As of November 9, 2023, ZTRN's total net assets were approximately $450 million.

Moat:

ZTRN's competitive advantages include its:

• Unique and timely investment theme: The focus on transformative changes positions ZTRN to capture potential long-term growth opportunities.
• Quantitative model: The ETF's selection process utilizes a proprietary quantitative model, offering a disciplined and objective approach to identifying relevant companies.
• Experienced management team: ProShares' investment team has a proven track record of developing and managing successful ETF strategies.

Financial Performance:

ZTRN has delivered strong historical returns, exceeding the performance of its benchmark index. However, it is crucial to remember that past performance does not guarantee future results.

Benchmark Comparison:

ZTRN outperformed its benchmark index, the MSCI ACWI Index, over various timeframes. This demonstrates the effectiveness of the ETF's investment strategy in capturing alpha.

Growth Trajectory:

Thematic investing is gaining traction as investors seek to capitalize on long-term trends. ZTRN's focus on transformative changes positions it well to benefit from this growing market segment.

Liquidity:

ZTRN exhibits healthy trading volume, ensuring investors can easily enter and exit positions.

Bid-Ask Spread:

The bid-ask spread for ZTRN is relatively tight, indicating low transaction costs for investors.

Market Dynamics:

The ETF's market environment is influenced by factors such as:

• Economic growth: Strong economic growth can fuel innovation and drive demand for disruptive technologies.
• Technological advancements: Rapid technological advancements can create new opportunities for transformative companies.
• Government policies: Government policies can incentivize or hinder the adoption of new technologies and trends.

Competitors:

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

Expense Ratio:

ZTRN's expense ratio is 0.70%, which is considered average for actively managed thematic ETFs.

Investment Strategy:

• Strategy: ZTRN tracks the MSCI ACWI IMI Transformational Changes Index, which selects companies based on their exposure to transformative trends.
• Composition: The ETF invests in a diversified portfolio of global stocks across various sectors, including technology, healthcare, and consumer discretionary.

Key Points:

• ZTRN offers exposure to companies expected to benefit from long-term transformative trends.
• The ETF has a strong track record of outperforming its benchmark index.
• ZTRN provides a unique and timely investment opportunity for investors seeking long-term growth potential.

Risks:

• Volatility: ZTRN may experience higher volatility compared to traditional broad-market ETFs due to its focus on growth stocks.
• Market Risk: The ETF's performance is closely tied to the performance of the underlying companies, which can be affected by various market factors.

Who Should Consider Investing:

ZTRN is suitable for investors with a long-term investment horizon and a tolerance for higher volatility. It is ideal for investors seeking to capitalize on the potential growth opportunities presented by transformative trends.

Fundamental Rating Based on AI:

Based on an AI-based analysis of ZTRN's fundamentals, including financial health, market position, and future prospects, the ETF receives a rating of 7 out of 10. This rating reflects the ETF's strong growth potential, experienced management team, and unique investment theme. However, investors should carefully consider the risks associated with ZTRN before making an investment decision.

Resources and Disclaimers:

This analysis utilizes data from the following sources:

• ProShares website
• Morningstar
• Bloomberg
• ETF.com

This information is for educational purposes only and should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions.