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 that moves raw materials and goods around the world.
SUPL focuses exclusively on companies transforming how raw materials and goods move around the world — including global shipping, railroad, air, and trucking companies that collectively touch every point of the supply chain, according to a statement from the firm.
“The pandemic didn’t just highlight the crisis facing the global supply chain, it identified a ripe opportunity to invest in the companies striving to provide real solutions and embrace new technologies that may revolutionize global trade,” Michael L. Sapir, ProShares founder and CEO, said in a statement.
“SUPL may provide investors with exposure to the companies contributing to this long-term transformation,” Sapir added.
Tracking the FactSet Supply Chain Logistics Index, SUPL offers exposure to 40 shipping, railroad, air cargo, trucking, technology, and brokerage companies that underpin the global supply chain.
According to a statement from ProShares, these companies represent established logistics leaders that have not only weathered the pressures of the pandemic but are also potentially poised to benefit from the rise of e-commerce, the regionalization of manufacturing, and the digitization of distribution and delivery networks.
At the time of launch, SUPL’s largest holdings include Canadian Pacific Railway (5.53%), Union Pacific Corp (4.99%), Amadeus IT Group (4.82%), United Parcel Service (4.79%), and CSX Corp (4.78%), according to the firm’s website.
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