The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  ProShares Smart Materials ETF to a Morningstar Medalist Rating of Neutral.  The portfolio maintains a 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 earns an Average Process Pillar rating.  Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And a low yield exposure is rooted in holding fewer stocks with high dividend or buyback yields -- instead, typically holding stocks in an early stage of development. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including overall attractive fees but is held back by an unfavorable average Morningstar Rating.

Analyst Rating

Applied Materials

Cabot

Axalta Coating Systems

Sherwin-Williams

Merck

Universal Display

Hexcel

Banco Santander

Chemours

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 Smart Materials ETF earns an Average Process Pillar rating. The most significant contributor to 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 supports 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 investment results, before fees and expenses, that track the performance of the Solactive Smart Materials Index (the “index”).  The index selects companies focused on making or applying industrial innovations which allow for improved products, processes, or techniques through advanced, responsive, or intelligent materials. The fund adviser seeks to remain fully invested at all times in securities and/or financial instruments that, in combination, provide exposure to the returns of the index without regard to market conditions, and trends or direction. The fund is non-diversified. 

 The portfolio is overweight in technology and basic materials relative to the category average by 17.9 and 7.9 percentage points, respectively. The sectors with low exposure compared to category peers are energy and utilities, underweight the average by 26.9 and 3.3 percentage points of assets, respectively. The portfolio is composed of 38 holdings and is relatively top-heavy. Of the strategy's assets, 48.8% are concentrated within the top 10 holdings, as opposed to the category’s 25.3% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 45% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

ProShares’s team receives a Below Average People Pillar rating. The team benefits from the fund's structure. It tracks an index, which is helpful because historical data, such as Morningstar's Active/Passive Barometer, shows that index funds have generally outperformed their active counterparts, especially over longer time periods. However, the rating is held back by the parent firm's five-year success ratio of 27%. The measure indicates the percentage of a firm's funds that survived and outperformed 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 weakens 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 Smart Materials ETF

TINT tracks a market-cap weighted index of global companies that have significant exposure to smart materials, also known as intelligent or responsive materials.

Proshares S&P Kensho Cleantech ETF

Proshares S&P Kensho Smart Factories ETF

ProShares On-Demand ETF

ProShares Nanotechnology ETF

ProShares recently launched several new thematic funds for investors looking to invest in next-gen industries. Let's take a look at 6 ETFs betting on the trends of tomorrow, today.

6 ProShares ETFs Betting On the Future of Next-Gen Industries

ProShares added three new thematic ETFs to its lineup on Oct. 27. Here's what you should know about the ProShares Smart Materials ETF.

The ProShares Smart Materials ETF Looks to Invest in $110 Billion Market

Thematic investment can be a powerful tool to vault your portfolio past the myriad of obstacles that can plague the moment. If you're locked into the right disruptive megatrends, you won't have to stand by and watch inflation gobble up your portfolio or volatility strike it down.

The Future Will Be Built on Smart Materials

Here are three new ETFs focused on future industries to research further as you decide where to invest your hard-earned wealth. The post 3 New ProShares ETFs Built for the Trends of the Future appeared first on InvestorPlace.

3 New ProShares ETFs Built for the Trends of the Future

The new funds focus on nanotechnology, smart materials and on-demand streaming.

ProShares Launches 3 Thematic ETFs

On Wednesday, ProShares, a premier provider of ETFs, announced the launch of three new ETFs: the ProShares On-Demand ETF (OND), the ProShares Smart Materials ETF (TINT), and the ProShares Nanotechnology ETF (TINY). ProShares has launched six thematic ETFs in 2021, doubling its lineup to 12 thematic ETFs in total.

ProShares Launches Three New ETFs, Expanding Thematic Lineup

BETHESDA, Md.--(BUSINESS WIRE)--ProShares has launched three new ETFs: ProShares On-Demand ETF (OND), ProShares Smart Materials ETF (TINT), and ProShares Nanotechnology ETF (TINY).

News for Proshares Smart Materials ETF ETF (TINT)