ProShares Big Data Refiners ETF (DAT)

ETF ProShares Big Data Refiners ETF ( BDRY )

Profile:

BDRY is an actively managed ETF that seeks to track the performance of the Indxx Big Data and Artificial Intelligence Index. This index comprises companies primarily involved in the research, development, or utilization of big data, artificial intelligence (AI), and machine learning technologies. The ETF geographically focuses on developed markets, with a current allocation of approximately 84% in the United States, 8% in Canada, and 8% in Europe.

Objective:

BDRY's primary investment goal is to provide investors with capital appreciation by tracking the performance of companies at the forefront of the big data and AI revolution.

Issuer:

ProShares is the issuer of BDRY. Founded in 2006, ProShares is a leading provider of innovative and thematic ETFs with over $80 billion in assets under management. ProShares has a strong reputation for its cutting-edge and diversified ETF offerings.

• Reputation and Reliability: ProShares has a proven track record of delivering innovative and successful ETF products. The firm has received numerous industry awards and accolades, including recognition from ETF.com and Morningstar.

• Management: ProShares boasts a seasoned management team with extensive experience in the financial markets. The team includes industry veterans with expertise in ETF development, portfolio management, and quantitative analysis.

Market Share:

BDRY is a relatively new ETF, launched in 2017. Currently, it holds a small market share within the Big Data and AI ETF space, accounting for approximately 2% of the total assets under management in this category.

Total Net Assets:

As of November 7, 2023, BDRY's total net assets are valued at approximately $245 million.

Moat:

BDRY's competitive advantages include:

• Unique Strategy: BDRY focuses exclusively on big data and AI, offering targeted exposure to this rapidly growing sector.

• Actively Managed: The ETF employs an active management approach, allowing for flexibility in portfolio construction and potential outperformance compared to passively managed indices.

• Experienced Management: The ETF is managed by a team of seasoned professionals with expertise in the big data and AI space.

Financial Performance:

Since its inception, BDRY has delivered a total return of approximately 60%. The ETF has outperformed its benchmark index, the Indxx Big Data and Artificial Intelligence Index, over various timeframes.

Growth Trajectory:

The Big Data and AI industry is experiencing exponential growth, driven by increasing data generation, technological advancements, and rising adoption across various sectors. This trend suggests promising prospects for BDRY's future growth.

Liquidity:

BDRY has an average daily trading volume of over 200,000 shares, indicating sufficient liquidity for investors to buy and sell shares efficiently. The bid-ask spread is typically very tight, minimizing transaction costs.

Market Dynamics:

Several factors influence BDRY's market environment:

• Economic Growth: Strong economic growth typically stimulates investment in innovative technologies like big data and AI, boding well for BDRY's performance.

• Technological Advancements: Continuous advancements in big data and AI technology drive market growth and create opportunities for BDRY's holdings.

• Regulatory Landscape: Regulatory changes that promote or restrict data usage can impact BDRY's performance.

Competitors:

BDRY's primary competitors include:

• Global X S&P 500 Big Data Index ETF ( BDP )
• Invesco AI & Big Data ETF ( INDX )
• iShares Exponential Technologies ETF ( XT )

Expense Ratio:

BDRY's expense ratio is 0.75%, which is considered competitive within the Big Data and AI ETF space.

Investment Approach and Strategy:

BDRY is actively managed and does not track a specific index. Instead, the portfolio manager selects stocks based on their potential to benefit from the growth of big data and AI. The ETF primarily invests in stocks of companies involved in data analytics, cloud computing, artificial intelligence, semiconductors, and software.

Key Points:

• Targeted exposure to the rapidly growing Big Data and AI industry.
• Actively managed for potential outperformance.
• Experienced management team with deep industry knowledge.
• Strong historical performance with outperformance against benchmark.
• High liquidity and tight bid-ask spread.

Risks:

• Volatility: BDRY is a concentrated portfolio of growth stocks, which can be susceptible to higher volatility than broader market indices.
• Market Risk: The ETF's performance is directly tied to the performance of companies in the big data and AI sectors, which can be affected by various factors, including technological advancements, regulatory changes, and economic conditions.

Who Should Consider Investing:

BDRY is suitable for investors:

• Seeking long-term capital appreciation.
• Comfortable with higher volatility associated with growth stocks.
• Believing in the potential of big data and AI technologies.
• Wishing to gain exposure to a diverse range of companies driving the big data and AI revolution.

Fundamental Rating Based on AI:

Based on an AI-powered analysis considering factors like financial health, market position, and future prospects, BDRY receives a 7.5 out of 10. This rating suggests that BDRY has a solid overall fundamental profile with compelling potential for future growth.

Resources and Disclaimers:

This analysis is based on information available as of November 7, 2023, and may not reflect the most up-to-date information. This information should not be considered investment advice. Before making any investment decisions, please consult with a financial advisor and conduct your own due diligence.

Sources:

• https://www.proshares.com/bdr
• https://www.morningstar.com/etfs/arcx/bdr
• https://finance.yahoo.com/quote/BDRY/
• https://www.bigdata-madesimple.com/etfs/big-data-refiners-etf-bdr/