ProShares Online Retail ETF (ONLN)
Tap into the potential growth of online retail
How the world shops—and its move from traditional stores to online retail—is a major transformative trend that continues to have growth potential. Investors who want to take advantage of this opportunity may want to consider ProShares Online Retail ETF (ONLN). ONLN’s strategy pinpoints retailers that principally sell online or through other non-store channels, and then zeroes in on the companies reshaping the retail space, like Amazon and Alibaba.
Online retail sales are soaring
E-commerce has fundamentally disrupted the retail sector and put pressure on traditional stores. 65% of millennials, the largest generation, say they prefer to shop online than in-store, setting the stage for future growth.
It may only be the beginning
Just under 60% of the world’s population is currently online. But mobile devices are proliferating—especially in developing markets. The stage is set in developing nations like India, China and areas of Latin America for a major shift to online retail, potentially bringing hundreds of millions of consumers online.
Not all online retailers are created equal
Iconic companies in online retail—like Amazon and Alibaba—are reshaping the retail world. These names tend to be the innovators and leaders, opening new geographic markets, expanding available merchandise and investing in new technology and processes. ONLN’s modified market-cap weighting puts emphasis on these leaders, while also providing industry diversification.
ONLN tracks online retailers in a specialized index
The ProShares Online Retail Index tracks the largest U.S. and non-U.S. retailers that principally sell online or through other non-store channels. It offers a view of the companies that are delivering the new retail reality to the world.
Modified market capitalization weighting
The index uses a modified market capitalization-weighted approach, which enables it to place greater emphasis on category-leading names. It is rebalanced monthly and reconstituted annually. When the index is rebalanced, it is weighted so that:
- No company may exceed 24% of total index value.
- The sum of companies individually weighing more than 4.5% may not exceed 50% of index value.
- The total weight of all non-U.S. companies will be capped at 25% of index value. Market capitalization and volume requirements are as of the time of selection.
MORE INFORMATION
Visit the ONLN product page to download a fact sheet and product profile for ProShares Online Retail ETF (ONLN). Current fund performance, daily holdings, distributions, additional index information and prospectuses are also available.
About ProShares' Retail Disruption ETFs
ONLN is part of a suite of Retail Disruption ETFs that offer investors exposure to the transformation of the retail industry.
- ProShares Decline of the Retail Store ETF (EMTY) is specifically designed to benefit from the decline of bricks-and-mortar retailers
- ProShares Long Online/Short Stores ETF (CLIX) combines a 100% long position in retailers that primarily sell online or through other non-store channels with a 50% short-position in those that rely principally on physical stores.