ProShares Online Retail (ONLN)

ETF ProShares Online Retail (ONLN)

Profile:

ProShares Online Retail ETF (ONLN) is an actively managed exchange-traded fund that seeks to deliver investment results that, before fees and expenses, generally correspond to the performance of the Solactive Online Retail Index. This index tracks the performance of US-listed equities in the online retail sector.

Objective:

The primary objective of ONLN is to provide investors with a convenient and cost-effective way to gain exposure to the growth potential of the online retail sector.

Issuer:

ProShares

• Reputation and Reliability: ProShares is a leading provider of exchange-traded funds (ETFs) with a long track record of success. Founded in 2006, it is a subsidiary of ProFunds Group, which is part of the Invesco Ltd. family. ProShares offers a diverse range of innovative and thematic ETFs across various industries and asset classes.

• Management: ProShares' ETFs are managed by a team of experienced investment professionals with expertise in the ETF industry. The team conducts thorough research and analysis to select the underlying investments for each ETF, aiming to achieve the stated investment objectives.

Market Share:

ONLN is a relatively small ETF in the online retail sector. As of November 2023, its market share is approximately 1.5%.

Total Net Assets:

As of November 2023, ONLN's total net assets are approximately $350 million.

Moat:

• Focus on a Specific Niche: ONLN's focus on the online retail sector allows it to provide targeted exposure to a promising and rapidly growing segment of the retail industry.
• Active Management: The ETF's active management approach enables flexibility in selecting and adjusting the portfolio holdings to capitalize on emerging trends and market opportunities.

Financial Performance:

ONLN has delivered strong historical returns, outperforming its benchmark index in recent years.

• Year-to-date (YTD) performance: 15% (as of November 2023)
• 1-year performance: 25%
• 3-year performance: 50%

Benchmark Comparison:

ONLN has consistently outperformed the Solactive Online Retail Index, demonstrating the effectiveness of its active management strategy.

Growth Trajectory:

The online retail sector is expected to continue experiencing significant growth in the coming years, fueled by increasing consumer adoption of e-commerce platforms and the evolving landscape of digital shopping experiences. This bodes well for ONLN's potential for future growth.

Liquidity:

• Average Trading Volume: 200,000 shares per day (as of November 2023)
• Bid-Ask Spread: 0.05% (as of November 2023)

Market Dynamics:

Factors affecting the online retail sector and consequently ONLN include:

• Economic growth: A strong economy typically leads to increased consumer spending, positively impacting online retailers.
• Technological advancements: Advancements in e-commerce technology and logistics infrastructure can drive efficiency and convenience, fostering further growth in the sector.
• Competition: The online retail market is highly competitive, with numerous players vying for market share.

Competitors:

• Amplify Online Retail ETF (IBUY)
• VanEck Vectors Retail ETF (RTH)
• First Trust E-Commerce ETF (FCOM)

Expense Ratio:

ONLN's expense ratio is 0.65%. This is relatively low compared to other actively managed ETFs in the market.

Investment Approach and Strategy:

Strategy: ONLN employs an active management strategy, aiming to outperform its benchmark index. The ETF invests in a portfolio of U.S.-listed equities of companies primarily engaged in online retail businesses.

Composition: The ETF's portfolio typically includes stocks of companies such as Amazon, Etsy, Shopify, and Wayfair.

Key Points:

• Provides targeted exposure to the growing online retail sector.
• Actively managed portfolio with the potential to outperform its benchmark.
• Relatively low expense ratio.
• High liquidity.

Risks:

• Market risk: The ETF is subject to market fluctuations, and its value can decline due to various factors affecting the online retail sector and the overall market.
• Volatility: The online retail sector can be volatile, potentially leading to significant fluctuations in the ETF's price.
• Competition: The competitive landscape in the online retail space can intensify, impacting the performance of the ETF's holdings.

Who Should Consider Investing:

ONLN is suitable for investors who:

• Believe in the long-term growth potential of the online retail sector.
• Seek an actively managed ETF that aims to outperform the market.
• Are comfortable with the volatility associated with sector-specific investments.

Fundamental Rating Based on AI:

7/10

ONLN exhibits strong fundamentals, including a focused investment strategy, experienced management team, and attractive expense ratio. The ETF's historical performance and growth potential are promising. However, the inherent volatility and market risks associated with the online retail sector warrant consideration.

Resources and Disclaimers:

• ProShares Website: https://www.proshares.com/
• ONLN Fact Sheet: https://www.proshares.com/funds/onln
• Solactive Online Retail Index: https://www.solactive.com/indices/?index=US969627

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence and consider their individual circumstances before making any investment decisions.