INVESTMENT CASE

SUPL

Supply Chain Logistics ETF

Access the Companies Moving Global Trade Forward.

 

Key Takeaways:

  • Growing pressure on the supply chain has ignited rapid change across the industry.
  • Technological transformation is heralding the next era of supply chain logistics. 
  • Leaders in global logistics are poised to potentially thrive in this changing landscape. 
  • ProShares Supply Chain Logistics ETF (SUPL) offers a liquid and convenient way to invest in the supply chain logistics opportunity.

 

Get End-to-End Exposure to the Entire Supply Chain

Supply chain logistics companies include global shipping, railroad, air cargo, trucking, technology and brokerage companies that collectively touch every point of the supply chain and move raw materials and goods around the world. Many of these companies are undergoing significant transformation and may be an attractive investment opportunity.

supl_supply_infographic1.png

New Trends Are Reshaping Supply Chain Processes

Today, the spotlight on the supply chain is brighter than ever, precipitating a number of significant changes including a swing in demand for manufactured goods, volatility in consumption and spending patterns, and labor and material shortages.[1]
 
In pursuit of efficiency and resilience, companies across the supply chain have been and are fundamentally transforming the way they operate. Some of these changes are:
 
  • Implementing just-in-time delivery models
  • Onshoring more manufacturing work
  • Localizing production of many critical goods
  • Digitizing delivery, tracking, and the customer experience

 

New Technologies Are Evolving Traditional Industries

 

supl_robotics.png   Robotics, Automation, and Algorithms:

Automation is helping companies rein in costs, improve margins and increase the efficiency of moving, packing, loading, and tracking goods. 
 
The results:
These advances are compressing costs and increasing margins for logistics companies.
  • Warehouse automation could drive costs down 40% for logistics companies.[2]
  • Automating trucks moving to and from warehouses may save 45% in operating costs.[2]
  • Robots can result in as much as a 3X or 4X improvement in average warehouse picker productivity.[3]

 

supl_artificial intelligence.png    Artificial Intelligence (AI) and Analytics:

Harnessing massive amounts of data helps companies improve transparency and make faster, smarter decisions—from inventory optimization to product performance. 
 
The results:
Early adopters implementing AI in supply chain operations are:
  • Improving logistics costs by 15%[4]
  • Improving inventory levels by 35%[4]
  • Improving service levels by 65%[4]
  • Improving employee productivity by 20%[4]

 

supl_digital twins.png    Digital Twins:

Creating virtual replicas of physical assets to improve forecasts of asset utilization, repair and replacement cycles, capacity, and costs.
 
The results:
Early adopters seem capable of:
  • Reducing inventory by 5%[5]
  • Reducing capital expenditure up to 10%[5]

 

Current Supply Chain Logistics Companies May Benefit

Supply chain logistics is a capital-intensive industry with high barriers to entry. Expanding capacity in logistics often involves acquiring or manufacturing container ships, rail cars, warehouses, airplanes, or a truck fleet. Likewise, technological advancement often involves making large-scale investments. Therefore, companies with size and strength may be best positioned to innovate and implement the needed changes to meet the evolving demands of the supply chain.
 
What distinct advantages do these companies have that may allow them to succeed?
 

supl_supply_advantage.jpg

 

1 FRED Personal Consumption Expenditures (PCE), February 2022; Council on Foreign Relations, “What Happened to Supply Chains in 2021?,” December 2021

2 Shipware, “How Logistics Automation Cuts Costs,” May 2020

3 Vox, “How Robots Are Transforming Amazon Warehouse Jobs—for Better and Worse,” December 2019

4 ASCM Insights, “Optimize Your Supply Chain with AI and ML,” January 2022; IDC, “IDC Reveals India Artificial Intelligence Predictions for 2022 and Beyond; Large Enterprises to Expand AI Usage for Critical Horizontal Functions,” March 2022

5 BCG, “Conquering Complexity in Supply Chains with Digital Twins,” January 2020

ABOUT The ETF

  • Ticker Symbol

    SUPL

  • Intraday Symbol

    SUPL.IV

  • Bloomberg Index Symbol

    FDSSCLN

  • Investment Objective

    ProShares Supply Chain Logistics ETF seeks investment results, before fees and expenses, that track the performance of the FactSet Supply Chain Logistics Index.

  • Inception

    4/06/2022

ABOUT THE INDEX

The index is designed to track the performance of companies involved in supply chain logistics that are responsible for moving raw materials, intermediate goods, and finished products around the globe, as determined by the index methodology.

Download Prospectus pdf pdf-hover This links to a pdf file This link opens a new window

Take a closer look at SUPL

SUPL Fund Details

ProShares Supply Chain Logistics ETF

ProShares Supply Chain Logistics ETF (SUPL) is the first ETF focused exclusively on the companies that may benefit from the transformation of how raw materials and goods move around the world. These logistics companies include leading global shipping, railroad, air and trucking companies that collectively touch every point of the supply chain.

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 subject to certain risks, including the risk that the fund may not track the performance of the index and that the fund’s market price may fluctuate, which may decrease performance. Investments in non-U.S. securities may involve risks different from U.S. securities, including risks from geographic concentration, differences in valuation and valuation times, unfavorable fluctuations in currency, differences in generally accepted accounting principles, and economic or political instability. Investments in emerging markets generally are less liquid, more volatile and riskier than investments in more developed markets and are considered to be speculative. This fund is non-diversified and concentrates its investments in certain sectors. Non-diversified and narrowly focused investments typically exhibit higher volatility. Please see summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.

Investments in supply chain logistics are subject to risks including legislative or regulatory changes; adverse market conditions; increased competition; changing technology; cyberattacks; sharp price movements; pandemics, natural disasters or other crises; border and import controls; increased demand; mobility restrictions; shortages of product and labor; dependence on intellectual property rights; research and development costs; and rapid product obsolescence. Global, regional or local events may materially disrupt or indefinitely impair the operations of these companies. The index theme may not be the primary driver of company, index or fund performance. Companies in the index may have significant unrelated business lines, which could have a significant negative impact on performance. There is no guarantee that the underlying companies will be successful.

The "FactSet Supply Chain Logistics Index" and "FactSet" are trademarks of FactSet Research Systems Inc. and have been licensed for use by ProShare Advisors LLC. ProShares have not been passed on by these entities or their affiliates as to their legality or suitability. ProShares based on the FactSet Supply Chain Logistics Index are not sponsored, endorsed, sold, or promoted by FactSet Research Systems Inc., and it makes no representation regarding the advisability of investing in ProShares. THIS ENTITY AND ITS AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES. FactSet Research Systems Inc. does not guarantee the accuracy and/or the completeness of the FactSet Supply Chain Logistics Index or any data included therein, and FactSet Research Systems Inc. shall have no liability for any errors, omissions, or interruptions therein.

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.

ProShares ETFs (ProShares Trust and ProShares Trust II) are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.

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