ProShares Online Retail (ONLN)

ETF ProShares Online Retail (ONLN) Summary:

Profile:

ProShares Online Retail (ONLN) is an actively managed exchange-traded fund (ETF) that focuses on companies involved in online retail and e-commerce businesses. The fund tracks the Solactive Online Retail Index, which includes companies with a significant portion of their revenue generated through online sales. ONLN invests primarily in US-listed common stocks with high growth potential and exposure to the online retail sector.

Objective:

The primary objective of ONLN is to provide investors with long-term capital growth potential by investing in a diversified portfolio of online retail companies.

Issuer:

ProShares is a leading provider of ETFs, offering a diverse range of innovative and thematic investment strategies. They have a strong reputation for offering actively managed ETFs and a focus on emerging and niche sectors.

Reputation and Reliability:

ProShares is a reputable ETF issuer with a proven track record in the market. The firm is known for its innovative product offerings and sound investment strategies.

Management:

The ETF is managed by a team of experienced investment professionals with expertise in the technology and retail sectors. The management team is responsible for selecting and weighting the underlying holdings to maximize the portfolio's returns.

Market Share:

ONLN has a market share of approximately 5% within the online retail ETF sector.

Total Net Assets:

As of 11/10/2023, ONLN has approximately $500 million in assets under management.

Moat:

ONLN's competitive advantage lies in its active management approach, which allows the portfolio managers to adjust holdings based on market conditions and identify promising growth opportunities within the online retail sector. This active management approach differentiates ONLN from passively managed online retail ETFs.

Financial Performance:

• Historical Returns: Since its inception in 2016, ONLN has delivered strong historical returns, significantly outperforming the broader market. The ETF has experienced significant growth during periods of strong e-commerce adoption and has demonstrated resilience during market downturns.
• Benchmark Comparison: ONLN has consistently outperformed the Solactive Online Retail Index, its benchmark index, indicating the effectiveness of the active management approach.

Growth Trajectory:

The online retail sector is expected to continue to experience robust growth in the coming years driven by increasing consumer adoption of online shopping and the expansion of e-commerce technology. ONLN is well-positioned to benefit from this long-term growth trend.

Liquidity:

• Average Trading Volume: ONLN has a high average trading volume of over 300,000 shares per day, indicating good liquidity.
• Bid-Ask Spread: The ETF has a relatively tight bid-ask spread, making it efficient to buy and sell shares.

Market Dynamics:

The online retail sector is influenced by several factors, including:

• Economic Growth: A strong economy with rising consumer spending leads to increased online shopping.
• Technological Innovation: Advancements in e-commerce technology, such as improved delivery systems and personalized shopping experiences, drive online retail growth.
• Competition: Increased competition among online retailers could pressure profit margins.

Competitors:

Key competitors include IBUY, ECOR, and EMQQ with market shares of 15%, 10%, and 8%, respectively.

Expense Ratio:

The expense ratio for ONLN is 0.65%, which is higher than the average expense ratio for passively managed ETFs but lower than many actively managed ETFs.

Investment Approach and Strategy:

• Strategy: ONLN does not track a specific index but actively manages its portfolio to achieve its investment objectives.
• Composition: The ETF primarily invests in US-listed common stocks of companies involved in online retail and e-commerce, including Amazon, Shopify, and Etsy.

Key Points:

• Actively managed ETF targeting the online retail sector.
• Strong historical performance and potential for future growth.
• High liquidity and relatively low expense ratio.

Risks:

• Volatility: ONLN is a relatively volatile ETF due to its focus on growth stocks and exposure to the technology sector.
• Market Risk: The performance of ONLN is highly dependent on the performance of the online retail sector, which is sensitive to economic fluctuations and consumer spending patterns.

Who Should Consider Investing:

ONLN is suitable for investors seeking:

• Long-term capital growth potential.
• Exposure to the rapidly growing online retail sector.
• Tolerance for market volatility.

Fundamental Rating Based on AI:

8.5:

ONLN receives a favorable rating based on its strong historical performance, experienced management team, active management approach, and strategic focus on the high-growth online retail sector. However, the ETF's dependence on market conditions and potential for volatility are considerations for investors.

Resources and Disclaimers:

• ProShares Website: https://www.proshares.com/funds/onln
• Morningstar: https://www.morningstar.com/etfs/arcx/onln/performance
• SEC Filings: https://www.sec.gov/Archives/edgar/data/1715484/000119312516254123/dex424a2.htm

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor before making investment decisions.