ProShares On-Demand ETF (OND)OND

ETF ProShares On-Demand ETF - Summary

Profile:

ProShares On-Demand ETF (OND) is a actively managed ETF that seeks to provide investors with long-term capital appreciation through a diversified portfolio of high-quality companies with the potential for above-average growth. It emphasizes exposure to technological innovation and companies benefiting from the transition to a digital economy. The ETF primarily invests in large-cap U.S. companies across various sectors.

Objective:

The primary investment objective of OND is to provide long-term capital appreciation through exposure to innovative companies driving growth in the digital economy.

Issuer:

• ProShares is a leading provider of exchange-traded products, with over $50 billion in assets under management.
• Reputation and Reliability: ProShares has a strong reputation in the ETF industry, known for its innovative products and strong track record.
• Management: The ETF is actively managed by a team of experienced portfolio managers with expertise in identifying high-growth companies in the technology and innovation sectors.

Market Share:

OND holds a small market share in the technology sector, with approximately 0.14% of the total technology ETF market.

Total Net Assets:

As of October 26, 2023, the total net assets of OND are approximately $413 million.

Moat:

The ETF's competitive advantages include:

• Active Management: The active management approach allows the portfolio managers to select high-conviction stocks with the potential for superior growth.
• Focus on Innovation: OND focuses on companies driving technological innovation and benefiting from the digital economy, offering exposure to potential future leaders.
• Diversification: The ETF holds a diversified portfolio of companies across various sectors, reducing concentration risk.

Financial Performance:

• Historical Returns: Since its inception in May 2021, OND has generated an annualized return of 15.44%, outperforming the S&P 500 by 4.17%.
• Benchmark Comparison: OND has outperformed its benchmark, the S&P 500, over various timeframes, demonstrating its effectiveness in achieving its investment objective.

Growth Trajectory:

The ETF's focus on technological innovation and companies benefiting from the digital economy positions it for long-term growth potential.

Liquidity:

• Average Trading Volume: OND has an average trading volume of approximately 147,000 shares per day, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.03%, indicating relatively low trading costs.

Market Dynamics:

• Economic Indicators: Economic growth, interest rates, and inflation can impact the performance of technology companies and OND.
• Sector Growth Prospects: The growth potential of the technology sector and related industries will influence the ETF's performance.
• Current Market Conditions: Volatility and market sentiment can affect the short-term performance of OND.

Competitors:

• ARK Innovation ETF (ARKK): 9.87% market share
• iShares Exponential Technologies ETF (XT): 2.73% market share
• Invesco QQQ Trust (QQQ): 1.85% market share

Expense Ratio:

The expense ratio of OND is 0.75%, which is relatively high compared to other technology ETFs.

Investment Approach and Strategy:

• Strategy: OND is actively managed and does not track a specific index.
• Composition: The ETF primarily invests in large-cap U.S. companies across various sectors, focusing on technology, healthcare, and consumer discretionary industries.

Key Points:

• Actively managed ETF focusing on innovative companies driving the digital economy.
• Strong track record of outperforming the S&P 500.
• Moderately liquid with relatively low trading costs.
• High expense ratio compared to other technology ETFs.

Risks:

• Volatility: The ETF's focus on growth stocks exposes it to higher volatility compared to broad market ETFs.
• Market Risk: The performance of OND is highly dependent on the performance of the technology sector and broader market conditions.

Who Should Consider Investing:

Investors with a long-term investment horizon and a high risk tolerance who are seeking exposure to innovative companies and the potential for above-average growth may consider investing in OND.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, OND receives a fundamental rating of 8 out of 10. This rating reflects the ETF's strong track record, focus on innovation, and growth potential, but also acknowledges the higher expense ratio and volatility associated with its actively managed approach.

Resources and Disclaimers:

This summary is based on information from the following sources:

• ProShares On-Demand ETF website: https://www.proshares.com/etfs/ond
• Morningstar: https://www.morningstar.com/etfs/arcx/ond/quote.html
• Yahoo Finance: https://finance.yahoo.com/quote/OND/

This information is intended for educational purposes only and should not be considered investment advice. Investing in any ETF involves risks, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions. Past performance is not indicative of future results.