ProShares S&P Kensho Smart Factories ETF (MAKX)

Overview

The ProShares S&P Kensho Smart Factories ETF (SMCT) seeks to track the S&P Kensho Smart Factories Index. The ETF invests in companies involved in the development and deployment of smart factory technologies, including automation, AI, IoT, and advanced manufacturing. Its strategy is to provide exposure to companies driving the transformation of industrial production into more efficient, connected, and automated environments.

Reputation and Reliability

ProShares is a well-established ETF issuer known for its innovative and thematic ETFs, offering a wide range of investment strategies across various sectors and asset classes. They have a strong reputation for transparency and operational efficiency.

Management Expertise

ProShares benefits from experienced professionals in ETF development, portfolio management, and compliance. Their team is adept at designing and managing complex investment products that align with specific market themes and investor needs.

Goal

To provide investment results that correspond to the performance of the S&P Kensho Smart Factories Index.

Investment Approach and Strategy

Strategy: The ETF aims to track a specific index, the S&P Kensho Smart Factories Index, which comprises companies engaged in the smart factories theme.

Composition The ETF primarily holds equities of companies that are leaders in automation, robotics, AI, IoT, advanced materials, and other technologies enabling smart manufacturing.

Market Share: N/A

Total Net Assets (AUM): 191814000

Key Competitors

• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• ROBO Global Robotics and Automation Index ETF (ROBO)
• iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)

Competitive Landscape

The smart factory and robotics ETF space is competitive, with several established players offering similar thematic exposure. SMCT's advantage lies in its specific focus on the 'smart factories' index methodology, potentially offering a more targeted exposure than broader robotics or AI ETFs. However, it faces competition from larger, more established ETFs with broader holdings and potentially higher liquidity.

Historical Performance: [object Object],[object Object],[object Object]

Benchmark Comparison: The ETF's performance generally tracks its benchmark index, the S&P Kensho Smart Factories Index, with minor tracking differences due to expenses and methodology. Over the past year, it has shown strong performance, outperforming some broader market indices.

Expense Ratio: 0.47

Average Trading Volume

The ETF exhibits moderate average daily trading volume, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight enough for most retail investors to trade without significant additional cost, though it can widen during periods of high market volatility.

Market Environment Factors

The ETF is influenced by global trends in industrial automation, supply chain optimization, technological advancements in AI and IoT, and geopolitical factors impacting manufacturing and trade. Growing demand for efficiency and customization in manufacturing sectors is a positive driver.

Growth Trajectory

The smart factory theme is expected to continue its growth trajectory as companies invest in digital transformation and advanced manufacturing technologies. SMCT's holdings are positioned to benefit from this secular trend.

Competitive Edge

SMCT's competitive edge stems from its focused investment strategy on the 'smart factories' theme, as defined by the S&P Kensho Smart Factories Index. This targeted approach allows investors to gain exposure to a specific segment of the industrial technology revolution. The ETF offers diversification within this niche, as it invests in a basket of companies across various sub-sectors, mitigating single-stock risk. ProShares' expertise in thematic ETF development also lends credibility and operational efficiency to the fund.

Volatility

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Market Risk

The ETF is subject to market risk, as its performance is tied to the equity markets and the specific industries it invests in. Risks include technological obsolescence, intense competition among companies in the smart factory space, regulatory changes, and economic downturns that could reduce capital expenditure on new manufacturing technologies.

Ideal Investor Profile

The ideal investor for SMCT is one seeking to capitalize on the long-term growth potential of smart factories, automation, and advanced manufacturing technologies. Investors should have a moderate to high risk tolerance and a belief in the transformative power of these technologies in the industrial sector.

Market Risk

This ETF is best suited for long-term investors looking for thematic exposure and potential growth. It can also be used by active traders to express a view on the smart factory sector, but its primary appeal is for strategic, long-term allocation.

The ProShares S&P Kensho Smart Factories ETF (SMCT) offers focused exposure to the rapidly evolving smart factory ecosystem, investing in companies driving automation, AI, and IoT in manufacturing. While facing competition from other thematic ETFs, its specific index methodology provides a targeted approach. The ETF's performance has been strong in the past year, aligning with the growth trajectory of industrial technology. Investors with a long-term outlook and a moderate to high risk tolerance may find SMCT a suitable addition to their portfolio.

Data Sources:

• ProShares Official Website
• S&P Dow Jones Indices
• Financial Data Aggregators

Disclaimers:

This information is for educational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions. Data accuracy and completeness are subject to the sources provided and may change over time.