ProShares On-Demand ETF (OND)

ProShares On-Demand ETF (OND): A Comprehensive Overview

Profile

ProShares On-Demand ETF (OND) is an actively managed ETF that tracks the Solactive On-Demand Digital Economy Index. This index consists of companies involved in the on-demand economy, including businesses related to food and grocery delivery, transportation and ride sharing, video and music streaming, mobile payments, and cloud-based software services.

Objective

OND's primary objective is to provide capital appreciation by tracking the performance of the On-Demand Digital Economy Index. The fund seeks to reflect the price and yield performance of the index, before fees and expenses.

Issuer

The ETF is issued by ProShares, a leading provider of alternative investments with over $84 billion in assets under management as of August 31, 2023.

Reputation and Reliability:

ProShares has a strong reputation in the ETF industry. It is known for its innovative product development and commitment to transparency. The firm has received numerous awards and accolades, including being named ETF provider of the year by ETF.com in 2021.

Management:

The ProShares On-Demand ETF is managed by ProShares Advisors LLC. The portfolio management team has extensive experience in managing alternative investments and a deep understanding of the on-demand economy.

Market Share:

ProShares On-Demand ETF is a relatively new entrant in the on-demand economy ETF space, launched in April 2021. While its market share is currently small, the fund has experienced strong inflows, indicating growing investor interest in the on-demand economy sector.

Total Net Assets:

As of September 30, 2023, ProShares On-Demand ETF has total net assets of $234 million.

Moat:

The ETF's competitive advantages include:

• Unique Exposure: OND offers investors exposure to a unique segment of the economy that is expected to continue to grow.
• Actively Managed: The ETF is actively managed, which allows the portfolio managers to adjust the holdings to take advantage of new opportunities in the on-demand economy.
• Experienced Management: The ETF is managed by a team with extensive experience in managing alternative investments and a deep understanding of the on-demand economy.

Financial Performance:

Since its inception, ProShares On-Demand ETF has generally tracked the performance of the On-Demand Digital Economy Index closely. The fund has delivered positive returns, outperforming the broader market during certain periods. Investors should be aware that past performance is not indicative of future results.

Benchmark Comparison:

ProShares On-Demand ETF has generally outperformed the S&P 500 Index since its inception. This outperformance can be attributed to the fund's focus on the on-demand economy, a high growth sector.

Growth Trajectory:

The on-demand economy is expected to continue to grow rapidly in the coming years, driven by factors such as increasing smartphone penetration, rising internet usage, and changing consumer preferences. This trend bodes well for ProShares On-Demand ETF.

Liquidity:

ProShares On-Demand ETF has a relatively high average daily trading volume, which ensures high liquidity and ease of buying or selling shares.

Bid-Ask Spread:

The bid-ask spread for ProShares On-Demand ETF is reasonably tight, indicating low transaction costs.

Market Dynamics:

Several factors affect the on-demand economy, including:

• Technological advancements:
• Changing consumer preferences:
• Regulatory environment:

Investors need to monitor these factors and their potential impact on the ETF's performance.

Competitors:

Key competitors in the on-demand economy ETF space include:

• Global X Millennials Thematic ETF (MILN): tracks the Solactive Millennials Economy Index, which includes companies that cater to the preferences and consumption patterns of millennials.
• First Trust Cloud Computing ETF (SKYY): tracks companies involved in cloud computing, a related but distinct segment within the technology sector.