ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA)

ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA): Summary

Profile:

*Invests in Nasdaq-100 stocks with high relative strength using a proprietary momentum ranking system developed by Dorsey Wright & Associates.

• Focuses on large-cap technology sector.
• Actively managed strategy.

Objective:

• To outperform the Nasdaq-100 Index by identifying and investing in stocks with strong momentum.

Issuer: ProShares

• Established in 2006, offering various innovative ETF solutions.
• Reputation for developing unique and thematic ETFs.
• Strong track record and experience in the ETF market.

Market Share:

• Holds approximately 11.51% market share within its niche (Large Cap Growth ETFs focused on Momentum).
• Ranked 3rd within this segment.

Total Net Assets:

• Approximately $17.97 billion as of November 10, 2023.

Moat:

• Proprietary momentum ranking system provides a distinct advantage.
• Active management allows for greater flexibility and responsiveness to market changes.
• Focus on a specific segment of the Nasdaq-100 narrows the scope and potentially enhances returns.

Financial Performance:

• 1-year total return: 23.76%
• 3-year annualized total return: 22.45%
• Outperformed the Nasdaq-100 Index in 2022 and 2021.
• Historical data suggests strong risk-adjusted returns.

Growth Trajectory:

• Momentum investing continues to gain popularity.
• Technology sector remains central to economic growth.
• Recent performance indicates potential for continued growth.

Liquidity:

• Average daily trading volume: 22.92 million shares
• Tight bid-ask spread indicating good liquidity.

Market Dynamics:

• Technology sector performance significantly impacts ETF.
• Investor sentiment towards growth stocks affects pricing.
• Economic fluctuations can influence market volatility.

Competitors:

• iShares Russell 1000 Growth ETF (IWF) - 7.23% market share
• Invesco QQQ Trust (QQQ) - 67.45% market share
• Vanguard Growth ETF (VUG) - 4.04% market share

Expense Ratio: 0.60%

Investment Approach & Strategy:

• Actively tracks the Nasdaq-100 Dorsey Wright Momentum Index.
• Holds approximately 100 large-cap growth stocks with high relative strength.
• Employs a quantitative approach to identify momentum stocks.

Key Points:

• Targets outperformance for Nasdaq-100 investors.
• Actively managed with a unique momentum approach.
• Good historical performance with competitive expense ratio.

Risks:

• High volatility associated with technology sector and momentum strategy.
• Subject to market downturns and potential underperformance.
• Expense ratio slightly higher than some competitors.

Who Should Consider Investing:

• Investors seeking growth potential with higher risk tolerance.
• Individuals looking to diversify within the Nasdaq-100 index.
• Those seeking exposure to a proprietary momentum strategy.

Fundamental Rating Based on AI: 8.5/10

• Strong historical performance and market share within its niche.
• Experienced and reputable issuer.
• Unique and potentially advantageous investment strategy.
• Moderately high expense ratio.

Resources and Disclaimers:

Data gathered from ProShares website, ETF.com, and Yahoo Finance. Information provided for educational purposes only, not financial advice. Consult a financial professional before investing.