ProShares Long Online/Short Stores ETF (CLIX)

Overview

The ProShares Long Online/Short Stores ETF (CLIX) seeks to provide investment results that correspond to the performance of the daily FTSEu00ae Custom E-commerce Net Total Return Index. This index is designed to capture the performance of companies involved in online retail while simultaneously shorting companies involved in traditional brick-and-mortar retail. The ETF aims to profit from the ongoing shift from physical retail to e-commerce.

Reputation and Reliability

ProShares is a well-established ETF provider known for its innovative and often thematic investment products, including leveraged and inverse ETFs. They have a strong track record in the industry and are generally considered reliable.

Management Expertise

ProShares benefits from the expertise of its internal management team and the index methodology developed by FTSE Russell, a leading global index provider. The management focuses on executing the index's strategy accurately.

Goal

To provide a return that reflects the daily performance of the FTSEu00ae Custom E-commerce Net Total Return Index, which is designed to go long on online retail companies and short on traditional brick-and-mortar retail companies.

Investment Approach and Strategy

Strategy: The ETF aims to track a custom index that employs a long/short strategy. It invests in companies primarily engaged in e-commerce and simultaneously takes short positions in companies primarily engaged in traditional brick-and-mortar retail. This is a non-diversified, sector-specific strategy.

Composition The ETF holds a portfolio of equity securities of companies that are expected to benefit from the growth of online retail and takes short positions in equity securities of companies expected to be negatively impacted by the shift to e-commerce. The specific holdings and short positions will vary based on the index's rebalancing.

Market Share: As of recent data, CLIX's market share within the niche e-commerce/retail transformation ETF segment is relatively small, reflecting its specialized strategy. Detailed market share percentage is not readily available but is expected to be a fraction of the broader retail ETF market.

Total Net Assets (AUM): 33000000

Key Competitors

• SPDRu00ae S&P Retail ETF (XRT)

Competitive Landscape

The broader retail ETF market is dominated by broad-based retail sector ETFs like XRT. CLIX operates in a more niche segment focusing on the online vs. brick-and-mortar dynamic. Its competitive advantage lies in its specific long/short approach, offering a direct play on the retail shift, which is not directly replicated by broader retail ETFs. However, it faces the challenge of the index's complex methodology and the inherent risks of shorting.

Historical Performance: Historical performance data for CLIX shows significant volatility, reflecting its targeted strategy. Performance can be highly dependent on the relative performance of the online retail sector versus traditional retail. Specific year-over-year returns are best viewed through a chart.

Benchmark Comparison: The ETF's performance is directly tied to the FTSEu00ae Custom E-commerce Net Total Return Index. Its objective is to mirror this index's daily movements. Deviations would typically be due to tracking error or expense ratios.

Expense Ratio: 0.75

Average Trading Volume

The average daily trading volume for CLIX is generally moderate, which can lead to wider bid-ask spreads at times.

Bid-Ask Spread

The bid-ask spread for CLIX can fluctuate but typically reflects the ETF's liquidity and trading activity, potentially being wider than for more heavily traded ETFs.

Market Environment Factors

CLIX is highly sensitive to consumer spending trends, e-commerce adoption rates, technological advancements in online retail, and the economic health of traditional retail sectors. Inflationary pressures and interest rate changes can also impact consumer behavior and the profitability of both online and physical retailers.

Growth Trajectory

The growth trajectory of CLIX is directly linked to the continued dominance and innovation in the e-commerce space relative to traditional retail. Changes in strategy are dictated by the underlying index methodology and its rebalancing rules, which aim to adapt to evolving market conditions.

Competitive Edge

CLIX's primary competitive advantage is its unique long/short strategy focused on the secular trend of e-commerce growth versus brick-and-mortar retail decline. It offers investors a targeted way to express a view on this specific market dynamic, which is not commonly available in broader retail sector ETFs. The ETF provides a straightforward mechanism to potentially profit from both sides of this evolving retail landscape.

Volatility

CLIX is expected to exhibit higher volatility than broad market ETFs due to its concentrated sector focus and long/short strategy. The performance can be significantly impacted by the specific performance of a few key companies in both the long and short portfolios.

Market Risk

Specific market risks include the potential for a slowdown in e-commerce growth, increased competition in the online retail space, regulatory changes affecting online businesses, and adverse performance of the shorted traditional retail companies failing to meet expectations. The strategy is also subject to index methodology risk and the inherent risks associated with short selling.

Ideal Investor Profile

This ETF is best suited for sophisticated investors who understand the intricacies of long/short equity strategies and have a strong conviction about the continued outperformance of e-commerce over traditional retail. It's for investors looking for a tactical play on this specific sector shift.

Market Risk

CLIX is more suitable for active traders or investors with a short-to-medium term outlook who can closely monitor its performance and market conditions. It is generally not recommended for passive, long-term buy-and-hold investors due to its specialized nature and higher potential volatility.

The ProShares Long Online/Short Stores ETF (CLIX) offers a unique long/short strategy targeting the shift from brick-and-mortar to e-commerce. Its objective is to mirror the performance of a custom index that goes long online retail and short traditional retail companies. While offering a targeted exposure to this secular trend, it comes with higher volatility and complexity compared to broader retail ETFs. CLIX is best suited for active traders and sophisticated investors with a tactical view on the retail landscape.

Data Sources:

• ProShares official website
• Financial data aggregators (e.g., Bloomberg, Refinitiv)
• Index provider (FTSE Russell) information

Disclaimers:

This information is for educational purposes only and does not constitute financial advice. ETF performance can fluctuate, and past performance is not indicative of future results. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.