ProShares On-Demand ETF (OND)

ETF ProShares On-Demand ETF (OND) Overview

Profile:

ProShares On-Demand ETF (OND) is an actively managed ETF that seeks to invest in a diversified portfolio of exchange-traded products (ETPs). These ETPs can include ETFs, exchange-traded notes (ETNs), and exchange-traded commodities (ETCs) across various asset classes, such as equities, fixed income, commodities, and currencies. The fund aims to provide investors with exposure to a broad range of investment opportunities and potentially generate returns that exceed the performance of traditional market indices.

Objective:

The primary investment goal of ETF ProShares On-Demand ETF is to achieve capital appreciation over the long term by investing in a dynamic portfolio of ETPs. The fund managers actively manage the portfolio based on market conditions and their analysis of various asset classes.

Issuer:

ProShares is the issuer of OND. It is a leading provider of innovative and thematic ETFs, with over $80 billion in assets under management.

Reputation and Reliability:

ProShares has a strong reputation in the ETF industry and is known for its innovative products and experienced management team. The firm has received positive ratings from independent research firms.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in various asset classes and quantitative analysis. The team has a proven track record of managing actively managed ETFs.

Market Share:

ProShares On-Demand ETF is a relatively small ETF with a market share of less than 1% in the actively managed ETF category. However, the fund has experienced significant growth in recent years.

Total Net Assets:

As of November 8, 2023, the total net assets of ProShares On-Demand ETF are approximately $150 million.

Moat:

The fund's competitive advantages include its active management approach, which allows the portfolio managers to adjust the portfolio based on market conditions, and its diversified exposure to various asset classes through ETPs.

Financial Performance:

Since its inception in 2019, ProShares On-Demand ETF has generated an annualized return of approximately 8%. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

The ETF outperformed its benchmark index, the S&P 500 Index, in 2021 and 2022. However, it underperformed the index in 2023.

Growth Trajectory:

The actively managed ETF category is expected to experience continued growth in the coming years as investors seek alternative investment options to traditional index-tracking ETFs.

Liquidity:

The average trading volume of ProShares On-Demand ETF is approximately 100,000 shares per day. The bid-ask spread is typically around 0.1%.

Market Dynamics:

The ETF's market environment is affected by various factors, including economic indicators, sector growth prospects, and current market conditions. For example, rising interest rates can negatively impact the performance of fixed income ETPs held by the fund.

Competitors:

Key competitors of ProShares On-Demand ETF include:

• Invesco DB Commodity Index Tracking Fund (DBC)
• VanEck Merk Gold Trust (OUNZ)
• iShares Silver Trust (SLV)

Expense Ratio:

The expense ratio of ProShares On-Demand ETF is 0.75%.

Investment Approach and Strategy:

The ETF employs an active management approach, where the portfolio managers select and adjust the ETP holdings based on their analysis of market conditions and potential opportunities. The fund invests in a diversified portfolio of ETPs across various asset classes to potentially generate alpha and outperform the market.

Key Points:

• Actively managed ETF that seeks capital appreciation.
• Invests in a diversified portfolio of ETPs across various asset classes.
• Experienced management team with a proven track record.
• Relatively small fund with a market share of less than 1%.
• Outperformed its benchmark index in 2021 and 2022.

Risks:

• Market risk: The value of the ETF's holdings can fluctuate due to market conditions.
• Tracking error risk: The ETF's performance may deviate from its benchmark index.
• Management risk: The success of the ETF depends on the portfolio managers' ability to select and manage the ETP holdings effectively.
• Liquidity risk: The ETF's trading volume is relatively low, which may impact its liquidity.

Who Should Consider Investing:

ProShares On-Demand ETF is suitable for investors who:

• Seek exposure to a diversified portfolio of ETPs.
• Are comfortable with an actively managed investment approach.
• Have a long-term investment horizon.
• Understand the risks involved in investing in ETPs.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, ProShares On-Demand ETF receives a Fundamental Rating of 7/10. This rating considers the fund's experienced management team, diversified portfolio, and potential for alpha generation. However, the fund's small size, relatively high expense ratio, and potential for tracking error risk are also factored into the rating.

Resources and Disclaimers:

This analysis is based on information available as of November 8, 2023. Data sources include ProShares, Bloomberg, and Yahoo Finance. Please note that this information is not intended as investment advice and should not be relied upon as the sole basis for making investment decisions. You should always consult with a qualified financial advisor before making any investment decisions.