ProShares launches ETFs tracking on-demand platforms, smart materials, and nanotechnology

Oct 28th, 2021 | By | Category: Equities

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ProShares has extended its thematic proposition with the launch of three niche ETFs on NYSE Arca.

ProShares launches ETFs tracking on-demand platforms, smart materials, and nanotechnology

Michael L. Sapir, CEO of ProShares.

The new funds are positioned at the specialist end of the thematic spectrum, providing equity exposure to on-demand platforms, smart materials, and nanotechnology.

The funds’ underlying indices have a high degree of specificity, resulting in baskets of stocks of typically around 30 holdings.

This concentrated approach means they deliver precision access to their target exposure, making them well suited to investors looking to bet on the economic success of these closely delineated industries.

ProShares has now launched six thematic ETFs so far this year, doubling its thematic lineup to 12 ETFs in total.

Michael L. Sapir, CEO of ProShares, said: “We are excited to launch a set of truly innovative funds that give investors access to themes previously not available in the areas of nanotechnology, smart materials, and on-demand platforms.

“The future is smaller, smarter, and faster. These latest additions to the ProShares Thematic ETFs lineup provide investors new and efficient ways to access the companies changing how businesses operate, innovate and compete.”

All three funds offer global exposure, including emerging markets, and come with net expense ratios of 0.58%.

The funds

ProShares On-Demand ETF (OND US)
The ProShares On-Demand ETF tracks the FactSet On-Demand Index, an index consisting of companies that provide platforms and services for on-demand access to lifestyle needs including digital media, e-gaming, fitness, food delivery, ridesharing, or virtual reality experiences.

In order to be eligible for the index, a company must be assigned to at least one of 15 sub-industries identified by FactSet associated with on-demand services. The companies that generate 75% or more revenue from products or services linked to these sub-industries are selected for inclusion. If fewer than 25 companies meet the criteria, the revenue threshold is reduced to 50%.

Companies are weighted based on market capitalization, subject to a maximum weight of 4.5% for any single company. Current holdings include firms such as DoorDash, Netflix, Spotify, Take-Two Technologies, Electronic Arts, Delivery Hero, and Uber.

ProShares Smart Materials ETF (TINT US)
The ProShares Smart Materials ETF tracks the Solactive Smart Materials Index, an index targeting companies focused on making or applying industrial innovations which allow for improved products, processes, or techniques through advanced, responsive, or intelligent materials.

The index uses a natural language processing algorithm to scan company filings and other public information for terms and phrases that identify companies as having significant exposure in the field of smart materials. Each company that is picked out is then reviewed with companies that do not have relevant business exposure ultimately excluded from eligibility.

The refined list of companies is then ranked based on the level of exposure to smart materials, as determined by the algorithm. The 30 companies ranked highest are selected to constitute the index with securities weighted based on market capitalization, subject to a maximum weight of 4.5% for any single company. Current holdings include firms such as Hansol Chemical, Sherwin-Williams, Constellium, Sika, Arkema, OCI and Applied Materials.

ProShares Nanotechnology ETF (TINY US)
The ProShares Nanotechnology ETF tracks the Solactive Nanotechnology Index, an index consisting of companies focused on making or applying nanotechnology innovations that allow for improved products, processes, or techniques through control or measurement of material at nanoscale.

The index uses a natural language processing algorithm to scan company filings and other public information for terms and phrases that identify companies as having significant exposure in the field of nanotechnology. Each company that is picked out is then reviewed with companies that do not have relevant business exposure ultimately excluded from eligibility.

The refined list of companies is then ranked based on the level of exposure to nanotechnology, as determined by the algorithm. The 30 companies ranked highest are selected to constitute the index with securities weighted based on market capitalization, subject to a maximum weight of 4.5% for any single company.

Current holdings include firms such as Moderna, AMD, ASML, Entergris, Agilent Technologies, Bruker and Tower Semiconductor.

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