ITWO - ETF AI Analysis

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ProShares Russell 2000 High Income ETF (ITWO)

Rating:59Neutral

Price Target:―

The ProShares Russell 2000 High Income ETF (ITWO) has a moderate overall rating, reflecting a mix of strengths and weaknesses in its holdings. Strong contributors like NEXTracker and The Ensign Group drive the rating upward with their robust financial performance, revenue growth, and strategic market positions. However, weaker holdings such as IonQ and Guardant Health, which face financial instability and poor valuation metrics, weigh on the fund's overall score. A key risk factor is the ETF's exposure to companies with high leverage and valuation concerns, which could impact stability during market downturns.

Positive Factors

Strong Recent Performance

The ETF has shown steady gains over the past three months, indicating positive momentum.

Broad Sector Diversification

The fund is spread across multiple sectors, including technology, health care, and industrials, reducing reliance on any single industry.

Reasonable Expense Ratio

With an expense ratio of 0.55%, the ETF offers competitive costs compared to many actively managed funds.

Negative Factors

High Geographic Concentration

Over 92% of the fund's exposure is in U.S. companies, limiting diversification across global markets.

Small Holdings Weight

The top holdings each represent less than 1% of the portfolio, which may dilute the impact of strong-performing stocks.

Limited Asset Base

The ETF has relatively low assets under management, which could lead to less liquidity and higher trading costs for investors.

ITWO vs. SPDR S&P 500 ETF (SPY)

AUM99.64M

RegionNorth America

Expense Ratio0.55%

Beta1.01

IssuerProShares

Inception DateSep 04, 2024

Dividend YieldN/A

Asset ClassEquity

Index TrackedCboe Russell 2000 Daily Covered Call Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume53,548

30 Day Avg. Volume26,234

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

49.52

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering1918

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

ITWO Summary

The ProShares Russell 2000 High Income ETF (Ticker: ITWO) is an investment fund that focuses on small-cap companies in the U.S. These are smaller, often fast-growing businesses, and the ETF specifically includes companies that pay high dividends, offering a mix of growth and income. It tracks the Russell 2000 High Dividend Index, giving investors exposure to a wide range of industries like technology and healthcare. Some of its holdings include Bloom Energy and Credo Technology Group. This ETF might appeal to someone looking for diversification and the potential for higher returns from smaller companies. However, small-cap stocks can be more volatile, meaning their prices can rise or fall quickly.

How much will it cost me?The ProShares Russell 2000 High Income ETF (ITWO) has an expense ratio of 0.55%, which means you’ll pay $5.50 per year for every $1,000 invested. This is slightly higher than average because it is actively managed to focus on small-cap companies with high dividend yields, requiring more research and strategy compared to passively managed funds. Overall, it balances growth and income potential for investors.

What would affect this ETF?The ProShares Russell 2000 High Income ETF (ITWO) could benefit from a strong U.S. economy, as small-cap companies often thrive during periods of economic growth and innovation, particularly in sectors like technology and healthcare, which are heavily represented in this fund. However, rising interest rates or economic slowdowns could negatively impact small-cap stocks and dividend-paying companies, as borrowing costs increase and consumer spending declines. Regulatory changes or sector-specific challenges in industries like energy or financials may also influence the ETF's performance.

ITWO Top 10 Holdings

The ProShares Russell 2000 High Income ETF (ITWO) is leaning heavily on small-cap U.S. companies, with a notable focus on health care and financial sectors. Guardant Health is a rising star, delivering strong momentum despite financial challenges, while Bloom Energy’s growth potential is tempered by high leverage. IonQ and Kratos Defense are dragging the fund with mixed performance and valuation concerns, highlighting the volatility of small-cap stocks. Overall, the ETF’s sector diversity provides balance, but its reliance on niche players underscores the high-risk, high-reward nature of its strategy.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CRDO	Credo Technology Group Holding Ltd	0.69%	$681.27K	$25.99B	89.48%	77 Outperform
BE	Bloom Energy	0.66%	$652.23K	$22.46B	271.16%	62 Neutral
FN	Fabrinet	0.55%	$542.94K	$16.87B	89.98%	78 Outperform
SATS	Echostar	0.47%	$465.88K	$30.91B	360.02%	57 Neutral
IONQ	IonQ	0.45%	$445.04K	$17.84B	48.83%	51 Neutral
NXT	NEXTracker, Inc. Class A	0.41%	$404.86K	$12.87B	144.57%	78 Outperform
KTOS	Kratos Defense	0.41%	$404.41K	$12.83B	183.01%	60 Neutral
GH	Guardant Health	0.40%	$389.29K	$13.21B	193.64%	61 Neutral
BBIO	BridgeBio Pharma	0.38%	$375.45K	$14.48B	173.37%	59 Neutral
HL	Hecla Mining Company	0.37%	$360.68K	$12.60B	248.33%	74 Outperform

ITWO Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

39.46

Positive

100DMA

38.43

Positive

200DMA

35.84

Positive

Market Momentum

MACD

0.63

Negative

RSI

66.39

Neutral

STOCH

67.58

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ITWO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 39.50, equal to the 50-day MA of 39.46, and equal to the 200-day MA of 35.84, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 66.39 is Neutral, neither overbought nor oversold. The STOCH value of 67.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITWO.

ITWO Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
ITWO	―	―	$99.64M	0.55%	―
FLQS	―	―	$71.28M	0.35%	―
AFSM	―	―	$67.94M	0.75%	―
STXK	―	―	$67.24M	0.18%	―
FSCC	―	―	$65.60M	0.36%	―
BKSE	―	―	$61.97M	0.04%	―

Performance Comparison

ITWO

ProShares Russell 2000 High Income ETF

41.43

4.55

12.34%

FLQS

Franklin LibertyQ U.S. Small Cap Equity ETF

―

AFSM

First Trust Active Factor Small Cap ETF

―

STXK

Strive 2000 ETF

―

FSCC

Federated Hermes MDT Small Cap Core ETF

―

BKSE

BNY Mellon US Small Cap Core Equity ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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