ProShares, a premier provider of ETFs, today launched the first ETF investing only in retailers principally selling online or through other non-store channels. The ProShares Online Retail ETF (NYSE Arca: ONLN) focuses on the largest players in the space—iconic companies like Amazon and Alibaba, whose rise is reshaping the retail world.
“Retail shopping is increasingly moving away from bricks-and-mortar stores and going digital, and the companies driving sales in this rapidly growing marketplace present an opportunity for investors,” said Michael L. Sapir, co-founder and CEO of ProShare Advisors, LLC, the advisor to ProShares. “Rather than investing in an individual company, investors can now get exposure to Amazon, Alibaba and other global leaders in online retail with a single ticker: ONLN,” Sapir said.
Analysts expect the growth of online retail to continue. Today, about 10% of global retail sales are made online, which leaves a strategy such as ONLN’s with tremendous room for growth. Recent data indicates that online sales growth could double by 2030.
ONLN expands ProShares' lineup of Retail Disruption ETFs, which includes ProShares Decline of the Retail Store (EMTY) and ProShares Long Online/Short Stores ETF (CLIX).
|ProShares Online Retail ETF||ONLN||NYSE Arca||ProShares Online Retail Index|
More About the ProShares Online Retail Index
ONLN tracks the ProShares Online Retail Index. The index is designed to measure the performance of publicly traded companies that principally sell online or through other non-store channels, such as mobile or app purchases, rather than through bricks-and-mortar store locations. The index uses a modified market-capitalization weighting approach. The ProShares Online Retail Index’s constituents may include U.S. and non-U.S. companies listed on a U.S. stock exchange. Companies in the index must:
- Be classified as an online retailer, an e-commerce retailer, or an internet or direct marketing retailer, according to standard industry classification systems.
- Have a market capitalization of at least $500 million.
- Have a six-month daily average value traded of at least $1 million and meet other requirements.
ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than $30 billion in assets. The company is the leader in strategies such as dividend growth, alternative and geared (leveraged and inverse). ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.
ProShares is the leader in dividend growth, alternative and geared (leveraged and inverse) strategies; Source: ProShares, Strategic Insight and Lipper, based on number of funds and/or assets, as of 12/31/17. Sources: eMarketer (10% of global retail sales are online); FTI Consulting, 2017 U.S. Online Retail Forecast (projected sales growth). The ProShares Online Retail Index includes allocations to Amazon (24%) and Alibaba (16%) as of 7/2/18.
Any forward-looking statements herein are based on expectations of ProShare Advisors LLC at this time. Whether or not actual results and developments will conform to ProShare Advisors LLC’s expectations and predictions, however, is subject to a number of risks and uncertainties, including general economic, market and business conditions, changes in laws or regulations or other actions made by governmental authorities or regulatory bodies, and other world economic and political developments. ProShare Advisors LLC undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investing involves risk, including the possible loss of principal. This ProShares ETF is non-diversified and entails certain risks, including imperfect benchmark correlation and market price variance, that may decrease performance. International investments may involve risks from: geographic concentration, differences in valuation and valuation times, unfavorable fluctuations in currency, differences in generally accepted accounting principles, and from economic or political instability. Investments in smaller companies typically exhibit higher volatility. Smaller company stocks also may trade at greater spreads or lower trading volumes, and may be less liquid than stocks of larger companies. Investments in the consumer discretionary and retailing industries are subject to risks such as changes in domestic and international economies, interest rates, competition and consumer confidence; disposable household income; consumer tastes and preferences; intense competition; changing demographics; marketing and public perception; and dependence on third-party suppliers and distribution systems. In emerging markets, many risks are heightened, and lower trading volumes may occur. In addition to its investment in the securities of online retailers, a limited portion of the fund’s assets may be held in cash or money market instruments. Please see the summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. Obtain them from your financial advisor or broker-dealer representative or visit ProShares.com.
Solactive AG serves as index calculation agent for this Index and performs routine daily index calculations and index maintenance (e.g., reconstitution, rebalancing, and corporate actions). “Solactive AG,” a registered trademark of Solactive AG has been licensed for use by ProShare Advisors LLC. SOLACTIVE AG AND ITS AFFILIATES MAKE NO WARRANTIES, EXPRESS OR IMPLIED, AND BEAR NO LIABILITY WITH RESPECT TO THE INDEX, PROSHARES, OR THE FUND.
ProShares are distributed by SEI Investments Distribution Co. (“SIDCO”), which is not affiliated with the funds’ advisor.
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