ProShares Long Online/Short Stores ETF (CLIX)

Overview

The ProShares Long Online/Short Stores ETF (CLIX) seeks investment results that correspond to the performance of the ProShares Long Online/Short Stores Index. It aims to profit from the growth of online retailers and the decline of traditional brick-and-mortar stores through a 100% long exposure to online retailers and a 50% short exposure to brick-and-mortar stores.

Reputation and Reliability

ProShares is a well-established issuer known for its leveraged and inverse ETFs, providing sophisticated investment strategies.

Management Expertise

ProShares has a team of experienced professionals in the ETF industry with a deep understanding of index-based investing and portfolio management.

Goal

To seek investment results that correspond to the performance of the ProShares Long Online/Short Stores Index.

Investment Approach and Strategy

Strategy: The ETF aims to track an index that represents the performance of online retailers (long position) and brick-and-mortar stores (short position).

Composition The ETF primarily holds stocks of companies involved in online retail (long positions) and utilizes short positions (through derivatives or similar instruments) in companies involved in traditional retail.

Market Share: CLIX holds a relatively small market share within the broader retail ETF market.

Total Net Assets (AUM): 35000000

Key Competitors

• XRT
• RETL
• IBUY

Competitive Landscape

The retail ETF market is competitive, with several broad retail ETFs and some more specialized ones. CLIX distinguishes itself with its long/short strategy, providing a targeted exposure to the online vs. brick-and-mortar retail trend. However, it may be more volatile and complex compared to passively managed broad retail ETFs. Its competitive edge lies in its unique investment strategy capitalizing on the contrasting performance of online and brick-and-mortar retailers, while its disadvantage stems from the higher complexity and potential risks associated with short positions.

Historical Performance: Historical performance can be found on financial data sites and should be evaluated over different time horizons (1yr, 3yr, 5yr, 10yr) to assess long-term trends.

Benchmark Comparison: The ETF's performance should be compared against the ProShares Long Online/Short Stores Index to evaluate its tracking effectiveness.

Expense Ratio: 0.65

Average Trading Volume

The average trading volume reflects the number of shares exchanged per day, impacting the ease of buying or selling shares.

Bid-Ask Spread

The bid-ask spread shows the difference between the highest price a buyer will pay and the lowest price a seller will accept, indicating trading costs.

Market Environment Factors

The ETF's performance is heavily influenced by consumer spending habits, e-commerce growth rates, and overall economic conditions affecting both online and traditional retail sectors.

Growth Trajectory

The growth trajectory depends on the continued shift towards online shopping and the struggles of traditional brick-and-mortar retailers; changes in strategy and holdings would reflect adjustments to these trends.

Competitive Edge

CLIX offers a distinct investment strategy by taking a long position in online retailers and a short position in brick-and-mortar stores. This strategy allows investors to potentially profit from the secular shift towards e-commerce while hedging against the underperformance of traditional retail. This targeted approach differentiates it from broader retail ETFs. CLIX is suitable for investors who have a strong conviction in the growth of online retail and expect further decline in traditional brick-and-mortar stores, seeking a specialized investment vehicle to capture this trend.

Volatility

The ETF's volatility will be influenced by the volatility of both online retail stocks and short positions in traditional retail stocks. The short positions can amplify risk.

Market Risk

The ETF is subject to market risk, sector-specific risk (retail), and the risks associated with short selling, including potentially unlimited losses.

Ideal Investor Profile

The ideal investor is an individual with a high-risk tolerance who believes in the continued growth of online retail at the expense of traditional brick-and-mortar stores. They should understand the complexities and risks of short selling and leveraged ETFs.

Market Risk

This ETF is more suitable for active traders or investors with a specific view on the retail sector rather than passive index followers, due to its tactical, non-diversified approach.

The ProShares Long Online/Short Stores ETF (CLIX) is a specialized ETF providing targeted exposure to the online vs. brick-and-mortar retail dynamic. It utilizes a long/short strategy, taking long positions in online retailers and short positions in brick-and-mortar stores. This makes it different from broad retail ETFs. CLIX carries inherent risks associated with its investment strategy, including the use of short positions, and is best suited for risk-tolerant investors with a specific outlook on the retail industry. Its performance depends heavily on the continued growth of e-commerce and the struggles of traditional retail.

Data Sources:

• ProShares Website
• ETF.com
• Yahoo Finance
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions. Market share data and AUM may vary slightly depending on the source and date.