ProShares Plans Three Short Brick-And-Mortar Retail ETFs

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July 11, 2017 11:26am NYSE:XRT

Investors looking to short the traditional “brick and mortar” retail sector will soon have a few new ETF options in the space, according to a recent filing by ETF issuer ProShares.


The ProShares Long Online Short Bricks & Mortar Retail ETF will track the Online vs Bricks and Mortar Retail Long/Short Index, which invests in online retailers such as Amazon and others. The index may also take short positions companies “most threatened by the online retailing trend.”

Holdings will be equal weighted with a maximum exposure of 20% non-U.S. stocks. Short positions will be picked from the 100 largest U.S. retailers with a market cap of at least $500 million.

Meanwhile, ProShares also plans two leveraged funds in the space. The ProShares UltraShort Bricks and Mortar Retail ETF will offer -200% exposure to the Bricks and Mortar Retail Index, and the ProShares UltraPro Short Bricks and Mortar Retail ETF will offer -300% exposure to the same index.

The Bricks and Mortar Retail Index index is similarly constructed to the short portion of the Online vs Bricks and Mortar Retail Long/Short Index, picking shorts from the 100 largest U.S. retailers likely to be threatened by online retail.

Investors wanting to bet against traditional retailers are likely salivating at the prospect of these new funds. The SEC filing didn’t indicate a listing exchange, expense ratio, or tickers.

The largest existing retail-focused ETF, the SPDR S&P Retail ETF (NYSE:XRT), was trading at $38.83 per share on Tuesday morning, up $0.08 (+0.21%). Year-to-date, XRT has declined -11.89%, versus a 8.43% rise in the benchmark S&P 500 index during the same period.

XRT currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #36 of 45 ETFs in the Consumer-Focused ETFs category.

XRT contains positions in both traditional and online retailers.


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