ProShares S&P Kensho Smart Factories ETF (MAKX)

Overview

The ProShares S&P Kensho Smart Factories ETF (FCTR) seeks investment results, before fees and expenses, that correspond to the performance of the S&P Kensho Smart Factories Index. It focuses on companies involved in the innovation and development of smart factories, including robotics, automation, and digital manufacturing.

Reputation and Reliability

ProShares is a well-known issuer of leveraged and inverse ETFs, and has a solid reputation for providing innovative investment products.

Management Expertise

ProShares has a team of experienced investment professionals with expertise in ETF management and index tracking.

Goal

To track the performance of the S&P Kensho Smart Factories Index.

Investment Approach and Strategy

Strategy: Tracks the S&P Kensho Smart Factories Index, which measures the performance of companies focused on the development and deployment of smart factory technologies.

Composition Primarily holds stocks of companies involved in robotics, automation, 3D printing, and other technologies related to smart factories.

Market Share: FCTR has a moderate market share within the thematic robotics and automation ETF space.

Total Net Assets (AUM): 175000000

Key Competitors

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

Competitive Landscape

The robotics and automation ETF market is competitive, with several established players. FCTR's advantage lies in its specific focus on smart factories, which can appeal to investors looking for a more targeted exposure. However, it faces disadvantages in terms of AUM and trading volume compared to larger competitors like ROBO and BOTZ, which offer broader exposure to the robotics and AI space.

Historical Performance: Historical performance data varies depending on the timeframe; refer to fund factsheet for detailed returns.

Benchmark Comparison: Performance should be compared against the S&P Kensho Smart Factories Index. Differences are largely due to fund expenses and tracking error.

Expense Ratio: 0.58

Average Trading Volume

The average trading volume for FCTR is moderate, which might affect the ease of buying or selling large positions.

Bid-Ask Spread

The bid-ask spread is typically reasonable, but can widen during periods of market volatility, impacting transaction costs.

Market Environment Factors

Economic growth, technological advancements, government policies supporting manufacturing, and increasing adoption of automation drive FCTR's performance.

Growth Trajectory

FCTR's growth trajectory is tied to the expansion of the smart factory market. Changes to strategy are infrequent, but holdings adjust with the underlying index methodology.

Competitive Edge

FCTR's competitive edge stems from its focused approach on smart factories, differentiating it from broader robotics and automation ETFs. The underlying S&P Kensho Smart Factories Index uses a sophisticated methodology to identify companies involved in this specific theme. This targeted approach can offer investors a purer exposure to the smart factory trend. ProShares' expertise in thematic ETFs provides further credibility. However, this narrow focus can also be a disadvantage if the broader robotics and automation market outperforms.

Volatility

FCTR's volatility is likely to be similar to that of other technology-focused ETFs and can be higher than broad market ETFs.

Market Risk

Market risk includes sector-specific risks related to technology and manufacturing, as well as broader economic risks affecting industrial automation spending.

Ideal Investor Profile

The ideal investor is one seeking targeted exposure to the smart factory theme, with a moderate to high risk tolerance and a long-term investment horizon.

Market Risk

FCTR is more suitable for long-term investors who believe in the growth potential of smart factories, rather than active traders seeking short-term gains.

The ProShares S&P Kensho Smart Factories ETF (FCTR) offers a focused investment in the smart factory theme by tracking the S&P Kensho Smart Factories Index. It suits investors who believe in the long-term growth of automation and digital manufacturing. While providing a targeted approach, investors should consider its moderate trading volume and potential volatility. Its specific focus differentiates it from broader robotics and automation ETFs like ROBO and BOTZ. Due diligence is recommended to determine suitability for individual investment goals and risk tolerance.

Data Sources:

• ProShares website
• ETF.com
• Morningstar
• S&P Kensho Indices Fact Sheet

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions.