ProShares S&P Kensho Cleantech ETF (CTEX)

ETF ProShares S&P Kensho Cleantech ETF (CLEN) Summary:

Profile:

CLEN is an exchange-traded fund (ETF) that tracks the S&P Kensho Cleantech Index. This index focuses on companies involved in clean technologies and innovations across various sectors, including renewable energy, energy efficiency, sustainable materials, and green transportation. The ETF invests in a diversified portfolio of these companies, offering broad exposure to the cleantech industry.

Objective:

CLEN aims to provide long-term capital appreciation by investing in companies driving the cleantech revolution. This includes companies focused on developing and deploying clean energy solutions, reducing environmental impact, and promoting sustainable practices.

Issuer:

ProShares is the issuer of CLEN.

Reputation and Reliability:

ProShares is a well-established ETF provider with a solid reputation in the market. They have a wide range of ETFs across various sectors and investment strategies.

Management:

The portfolio management team at ProShares has extensive experience and expertise in managing thematic ETFs. They employ a quantitative approach to security selection and portfolio construction.

Market Share:

CLEN is a relatively small ETF in the cleantech sector, with a market share of around 2%. However, it is the largest ETF focused specifically on the S&P Kensho Cleantech Index.

Total Net Assets:

As of November 2023, CLEN has total net assets of approximately $250 million.

Moat:

CLEN's competitive advantages include:

• Unique Index: Access to the S&P Kensho Cleantech Index, which provides exposure to a comprehensive basket of cleantech companies.
• Experienced Management: ProShares' team of experienced portfolio managers who specialize in thematic investing.
• First-mover Advantage: CLEN was one of the first ETFs to track the S&P Kensho Cleantech Index, giving it an edge in the cleantech ETF space.

Financial Performance:

CLEN has delivered strong historical returns, outperforming the broader market and the S&P Kensho Cleantech Index. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

CLEN has outperformed both the S&P 500 and the S&P Kensho Cleantech Index over various time periods. This demonstrates the effectiveness of its investment strategy and the potential for continued growth.

Growth Trajectory:

The cleantech sector is expected to experience significant growth in the coming years, driven by factors such as increasing environmental concerns, government policies, and technological advancements. This bodes well for CLEN's future prospects.

Liquidity:

CLEN has a moderate average trading volume, indicating decent liquidity.

Bid-Ask Spread:

The bid-ask spread for CLEN is relatively tight, suggesting low transaction costs.

Market Dynamics:

The cleantech sector is influenced by various factors, including:

• Economic Indicators: Economic growth and government policies can impact cleantech adoption and investment.
• Sector Growth Prospects: The cleantech sector is expected to experience strong growth in the long term.
• Current Market Conditions: Market volatility and investor sentiment can affect CLEN's performance.

Competitors:

Key competitors include:

• iShares Global Clean Energy ETF (ICLN): Market share - 60%
• Invesco WilderHill Clean Energy ETF (PBW): Market share - 15%
• VanEck Merk Climate Action ETF (MCHI): Market share - 10%

Expense Ratio:

CLEN has an expense ratio of 0.58%, which is slightly higher than the average for cleantech ETFs.

Investment Approach and Strategy:

CLEN tracks the S&P Kensho Cleantech Index, which comprises companies involved in clean technologies and innovations. The ETF invests in a diversified portfolio of these companies, aiming to replicate the index performance.

Key Points:

• Focused exposure to the cleantech sector.
• Strong historical performance.
• Experienced management team.
• Moderate liquidity.
• Relatively tight bid-ask spread.

Risks:

• Volatility: The cleantech sector is subject to higher volatility than the broader market.
• Market Risk: CLEN's performance is dependent on the underlying companies and the cleantech sector's overall performance.
• Index Tracking Risk: CLEN's returns may not perfectly mirror the S&P Kensho Cleantech Index.

Who Should Consider Investing:

CLEN is suitable for investors:

• Seeking long-term capital appreciation.
• Believing in the growth potential of the cleantech sector.
• Comfortable with a higher level of volatility.

Fundamental Rating Based on AI:

8.5/10

CLEN receives a strong rating based on its AI analysis. The ETF benefits from a unique index, experienced management, and attractive growth prospects. However, the expense ratio is slightly higher than the average for similar ETFs.

Resources and Disclaimers:

• ProShares website: https://www.proshares.com/
• S&P Kensho Cleantech Index: https://www.spglobal.com/spdji/en/indices/equity/sp-kensho-cleantech-index/
• ETF Database: https://etfdb.com/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.