ProShares S&P Kensho Smart Factories ETF (MAKX) seeks to track the S&P Kensho Smart Factories Index, which measures companies involved in industrial automation, robotics, 3D printing, and advanced manufacturing technologies. This thematic equity ETF provides exposure to the digitization and automation of manufacturing processes globally.
How It Works
MAKX uses a passively managed, modified market-capitalization-weighted approach that mirrors its benchmark index. The fund holds companies identified through artificial intelligence and data analytics as leaders in smart factory technologies, including industrial IoT, robotics, and automated manufacturing systems. Holdings are rebalanced quarterly to maintain alignment with index changes. The ETF typically holds 50-100 companies across developed markets, with concentration in technology and industrial sectors.
Key Features
- Targets the $12 trillion smart manufacturing revolution through AI-powered company selection methodology
- Focuses on pure-play automation companies rather than broad industrial or technology diversification
- Launched in 2021 to capture emerging trends in Industry 4.0 and factory digitization
Risks
- This ETF can lose significant value if smart factory adoption slows or automation investments decline during economic downturns
- High concentration in emerging technology themes creates volatility risk, with potential 40-60% declines during tech selloffs
- Small fund size and limited trading history may result in wider bid-ask spreads and liquidity challenges
Who Should Own This
Best suited as a satellite holding (5-15% of equity allocation) for growth-oriented investors with 3+ year time horizons seeking exposure to industrial automation trends. High risk tolerance required due to thematic concentration and technology sector volatility. Appropriate for investors betting on the digitization of manufacturing processes.