The ProShares On-Demand ETF (OND) seeks to provide exposure to companies positioned to benefit from the on-demand economy, including digital platforms, delivery services, and gig economy businesses. This thematic equity ETF targets companies that facilitate instant access to goods, services, and experiences through technology-enabled platforms.
How It Works
OND employs an actively managed approach, selecting U.S. and international stocks across market capitalizations that derive significant revenue from on-demand business models. The fund focuses on companies in ride-sharing, food delivery, streaming services, cloud computing, and digital marketplaces. Portfolio managers conduct fundamental analysis to identify pure-play and beneficiary companies, with quarterly rebalancing to capture emerging trends in the rapidly evolving on-demand sector.
Key Features
- First ETF specifically targeting the on-demand economy theme, capturing growth from digital transformation and consumer behavior shifts
- Active management allows flexibility to adapt holdings as new on-demand business models emerge and mature
- Zero expense ratio structure makes thematic investing accessible without typical premium fees charged by specialized funds
Risks
- This ETF can lose significant value if on-demand companies face regulatory crackdowns, as seen with gig economy worker classification issues
- High concentration in growth stocks means potential 40-60% declines during tech selloffs or rising interest rate environments
- Thematic investing risk exists if the on-demand trend reverses or companies fail to achieve profitability despite revenue growth
Who Should Own This
Best suited for aggressive growth investors with 3-7 year time horizons seeking thematic exposure as a satellite holding (5-15% of portfolio). High risk tolerance required due to growth stock volatility and sector concentration. Appropriate for investors believing in long-term structural shifts toward on-demand consumption patterns.