The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  ProShares Supply Chain Logistics ETF to a Morningstar Medalist Rating of Neutral.  The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The team managing the passive strategy earns a Below Average People Pillar. The strategy merits an Average Process Pillar rating.  High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy's parent organization is industry standard, albeit with some strong attributes like overall attractive fees, but is held back by a disappointing average Morningstar Rating. This earns the firm an Average Parent Pillar rating.

Analyst Rating

Union Pacific

XPO Logistics

FedEx

Expeditors International of Washington

American Shared Hospital Services

Old Dominion Freight Line

TFI International

Saia

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. ProShares Supply Chain Logistics ETF earns an Average Process Pillar rating. The most important driver of the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Management team experience, which averages 17 years at this fund, also bolsters the rating. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 38%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks results, before fees and expenses, that track the performance of the FactSet Supply Chain Logistics Index (the “Index”).  The fund invests in financial instruments that ProShare Advisors believes should track the performance of the index. The index provider then selects into the index the 40 largest companies, by market capitalization, and that generate 75% or more of their revenue from products or services produced or provided by one or more of the applicable RBICS Sub-Industries. The fund will invest at least 80% of its net assets in the securities that comprise the index. It is non-diversified. 

 The portfolio has allocations in its top two sectors, consumer cyclical and industrials, that are similar to the category. The sectors with low exposure compared to category peers are technology and financial services; however, the allocations are similar to the category. The portfolio is composed of 51 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 45.9% of the fund’s assets were concentrated in the top 10 fund holdings, as opposed to the category average's 68.8%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 20% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

ProShares’s team earns a Below Average People Pillar rating. The team is bolstered by the fund's structure. It tracks an index, which is helpful because historical data, such as Morningstar's Active/Passive Barometer, reveals that index funds have generally outperformed their active counterparts, especially over longer time periods. However, the rating is limited by the parent firm's five-year success ratio of 27%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 58% also detracts from the team.

Below Average

People

In a competitive industry, ProShares doesn't differentiate itself enough, leading to an Average Parent Pillar rating. A strength of ProShares is that its product shelf of open-end and exchange-traded funds is, on average, offered at a minimal cost, suggesting that it considers what's best for its investor base. On average, fees for funds are in the lowest quintile of respective category peers. Looking at the firm's risk-adjusted performance, the product lineup compares similarly to competitors. Across its open-end and exchange-traded funds, the firm's average 10-year Morningstar Rating is 3.1 stars. ProShares has faced above-average manager turnover in the past five years. This is a concern, as long-term stability tends to support positive results.

Parent

Proshares Supply Chain Logistics ETF

SUPL tracks a market-cap-weighted index of companies involved in the supply chain logistics of raw materials, intermediate goods, and finished products around the globe.

First Trust Nasdaq Transportation ETF

iShares Transportation Average ETF

Pacer Industrials and Logistics ETF

Following the strong Q3 results, FDX shares jumped 13% in after-market trade on elevated volume on mar 21.

ETFs to Gain on FedEx Fiscal Q3 Earnings Beat

FedEx (FDX) missed both earnings and revenue estimates for fiscal 2024 and cut the revenue guidance for the fiscal year on an expected drop in demand from the U.S. Postal Service.

FedEx Falls on Disappointing Fiscal Q2 Earnings: ETFs in Focus

Qraft AI-Enhanced US Next Value ETF

FedEx (FDX) topped earnings estimates but missed on revenues. It provided upbeat guidance for the fiscal year despite the ongoing demand weakness.

ETFs to Gain on FedEx Q1 Earnings Beat

FedEx (FDX) topped earnings estimates but missed on revenues. It provided weak guidance for the fiscal year on ongoing demand weakness and input cost inflation.

ETFs in Focus Post Mixed Q4 FedEx Earnings

AdvisorShares Drone Tech ETF

FedEx (FDX) topped earnings estimates and lifted its full-year outlook when it reported its third-quarter fiscal 2023 results.

FedEx Raises Outlook, Shares Jump: ETFs to Tap the Strength

Engine No 1 Transform Supply Chain ETF

The actively managed fund focuses on companies that are improving their own or others' supply chains.

Engine No. 1 ETF Targets Supply Chain Resilience

ProShares Equities for Rising Rates ETF

ProShares S&P 500 Dividend Aristocrats ETF

ProShares S&P MidCap 400 Dividend Aristocrats ETF

ProShares Russell 2000 Dividend Growers ETF

The key question of 2023 — will there be a hard or soft-landing — depends very much on which economy one is looking at: the goods economy or the service economy.

2023 Market Outlook: A Tale of Two Economies

American Customer Satisfaction ETF

The transport bellwether FedEx (FDX) delivered disappointing first-quarter fiscal 2023 results. The courier company missed both earnings and revenue estimates.

FedEx Fiscal Q1 Earnings Disappoints: ETFs in Focus

FedEx missed on earnings but beat the revenue estimates. The parcel company issued a stronger-than-expected full-year forecast for fiscal 2023.

FedEx Earnings Puts ETFs in Focus

The ProShares Supply Chain Logistics ETF trades under the ticker symbol SUPL and offers exposure to 40 shipping, railroad, air cargo, trucking, technology and brokerage companies that make up the FactSet Supply Chain Logistics Index.

ProShares launches Supply Chain Logistics ETF

ProShares has launched a new ETF offering investors the opportunity to benefit from fundamental changes to the supply chain. The ProShares Supply Chain Logistics ETF (SUPL), listed on the NYSE on April 7 with a 58 basis point expense ratio, is designed to give investors access to companies involved in each point of the process [.

ProShares Launches SUPL, Offering Investors Exposure to the Supply Chain

BETHESDA, Md.--(BUSINESS WIRE)--ProShares launches a Supply Chain Logistics ETF (SUPL) to provide investors end-to-end exposure to companies that move global trade forward.

News for Proshares Supply Chain Logistics ETF ETF (SUPL)