ProShares’ latest offering aims to give investors exposure to players in a global supply chain that is still reeling from the disruptions of the pandemic.
The ProShares Supply Chain Logistics ETF (SUPL) debuted on the NYSE Arca Thursday with an expense ratio of 0.58%.
SUPL follows a FactSet index of 40 U.S. and foreign companies with at least $500 million in market capitalization that provide logistics or transport of goods around the world. The index is weighted by market capitalization and limits any single constituent to 4.5% of its weight.
SUPL’s ability to invest in non-U.S. companies gives it a wider geographic reach than the iShares U.S Transportation Average ETF (IYT) and the First Trust Nasdaq Transportation ETF (FTXR). However, 18.85% of its weight among its top 10 constituents overlaps with the top-heavy IYT's 48% weighting in Union Pacific, UPS, CSX Corporation and FedEx.
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FXTR has 20% of its weight allocated amoong Union Pacific, CSX and FedEx.
The new fund is far less comparable to the ocean-shipping-specific SonicShares Global Shipping ETF (BOAT) and the U.S. Global Sea to Sky Cargo ETF (SEA), which are both global in nature. SUPL shares Evergreen Marine and Kuehne & Nagel among its top 10 holdings with SEA, amounting to approximately 8.5% of each fund’s weight and has no shared top 10 holdings with BOAT.