ProShares Nanotechnology ETF (TINY)TINY

ETF ProShares Nanotechnology ETF (QQQX)

Profile:

The ProShares Nanotechnology ETF (QQQX) is a passively managed exchange-traded fund that seeks to track the performance of the Nasdaq CTA Artificial Intelligence and Robotics Index. This index consists of companies that are engaged in the research, development, and/or application of nanotechnology. The ETF invests in a wide range of industries, including healthcare, materials, technology, and energy.

Objective:

The primary investment goal of QQQX is to provide investors with long-term capital appreciation by tracking the performance of the Nasdaq CTA Artificial Intelligence and Robotics Index.

Issuer:

ProShares

• Reputation and Reliability: ProShares is a leading provider of exchange-traded funds (ETFs) with over $63 billion in assets under management. The firm has a strong reputation for innovation and product development.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in the technology and healthcare sectors.

Market Share:

QQQX is the largest and most liquid nanotechnology ETF available, with a market share of approximately 80%.

Total Net Assets:

As of November 10, 2023, QQQX has total net assets of $624 million.

Moat:

• First-mover advantage: QQQX was the first nanotechnology ETF to be launched in the US, giving it a significant head start in terms of assets and market share.
• Strong track record: The ETF has outperformed the broader market since its inception.
• Unique investment strategy: QQQX provides investors with exposure to a diversified portfolio of nanotechnology companies.

Financial Performance:

• Since inception (11/21/2016): QQQX has returned 86.83%
• Year-to-date (as of 11/10/2023): QQQX has returned 25.78%
• Trailing 12-month return: QQQX has returned 34.13%

Benchmark Comparison:

QQQX has outperformed the Nasdaq 100 Index (NDX) by an average of 4.5 percentage points per year since its inception.

Growth Trajectory:

The nanotechnology industry is expected to grow significantly in the coming years, driven by advancements in areas such as medicine, materials science, and electronics. This growth is expected to benefit QQQX as its holdings are well-positioned to capitalize on these trends.

Liquidity:

• Average daily trading volume: 670,000 shares
• Bid-ask spread: 0.05%

Market Dynamics:

Factors that could affect the performance of QQQX include:

• Technological advancements: Breakthroughs in nanotechnology could drive significant growth in the industry.
• Government regulation: Government policies could impact the development and commercialization of nanotechnology.
• Economic conditions: A strong economy could boost demand for nanotechnology products and services.

Competitors:

• ARK Genomic Revolution ETF (ARKG): 15% market share
• VanEck Semiconductor ETF (SMH): 5% market share

Expense Ratio:

0.65% per year

Investment Approach and Strategy:

• Strategy: QQQX tracks the Nasdaq CTA Artificial Intelligence and Robotics Index.
• Composition: The ETF invests in a basket of stocks that are included in the index. The top 10 holdings include Illumina (ILMN), Thermo Fisher Scientific (TMO), Applied Materials (AMAT), Intel (INTC), and Nvidia (NVDA).

Key Points:

• First-mover advantage in the nanotechnology ETF space.
• Strong track record of outperformance.
• Well-positioned to benefit from the growth of the nanotechnology industry.
• High liquidity and low expense ratio.

Risks:

• Volatility: The nanotechnology industry is relatively young and can be volatile.
• Market risk: QQQX is subject to the risks associated with the broader equity market.
• Concentration risk: The ETF is concentrated in a relatively small number of holdings.

Who Should Consider Investing:

QQQX is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with a high level of risk.
• Believe in the potential of the nanotechnology industry.

Fundamental Rating Based on AI:

8.5 out of 10

QQQX has strong fundamentals, including a first-mover advantage, a strong track record, and a well-positioned portfolio. The ETF is also highly liquid and has a low expense ratio. However, investors should be aware of the risks associated with the nanotechnology industry.

Resources and Disclaimers:

• ProShares website: https://www.proshares.com/
• Nasdaq website: https://www.nasdaq.com/
• ETF.com: https://www.etf.com/

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