ProShares launches supply chain logistics ETF

Apr 13th, 2022 | By | Category: Equities

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ProShares has launched a new thematic equity ETF providing exposure to companies spearheading the logistical movement of raw materials and goods around the world.

ProShares launches supply chain logistics ETF

The ETF provides exposure to a diverse range of companies operating within supply chain logistics.

The ProShares Supply Chain Logistics ETF (SUPL US) has been listed on NYSE Arca with an expense ratio of 0.58%.

The fund delivers access to a diverse range of companies operating within supply chain logistics including in areas such as railroad transportation, autonomous drone manufacturing, air cargo, container and dry bulk shipping, trucking, express couriers, logistical technology, and brokerages.

According to ProShares, supply chain logistics represents a compelling investment opportunity as companies in the field are poised to benefit from the rise of e-commerce, the regionalization of manufacturing, and the digitization of distribution and delivery networks.

Michael L. Sapir, Founder and CEO of ProShares, said: “The pandemic didn’t just highlight the crisis facing the global supply chain, it identified a ripe opportunity to invest in the companies striving to provide real solutions and embrace new technologies that may revolutionize global trade. SUPL provides investors with exposure to the companies contributing to this long-term transformation.”

Methodology

The ETF tracks the FactSet Supply Chain Logistics Index which selects its constituents from a universe of developed and emerging market stocks with market capitalizations greater than $500 million and average daily trading volumes above $1m.

The methodology harnesses FactSet’s Revere Business Industry Classification System (RBICS) to screen for stocks that derive at least 75% of their revenue from 18 industries linked to supply chain logistics.

The index targets 40 of the largest stocks from the screened universe. If the screened universe consists of less than 40 stocks, the methodology also includes the largest stocks with revenue exposure between 50% and 75% until the constituent count is met.

Constituents are weighted by float-adjusted market capitalization subject to an individual cap of 4.5%. Reconstitution and rebalancing occur semi-annually.

As of 11 April, US-listed stocks accounted for 43.7% of the index weight with the next-largest country exposures being Taiwan (9.1%), Canada (7.8%), China (7.1%), and Spain (4.4%).

Notable positions included Canadian Pacific Railway, Union Pacific, United Parcel Service, CSX, Evergreen Marine, Amadeus IT, DSV, FedEx, and Old Dominion Freight Line, each with a weight between 4% and 5.5%.

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