ProShares S&P 500® ex-Financials ETF (SPXN)

ETF ProShares S&P 500® ex-Financials ETF Overview

Profile

Target sector: S&P 500 Index, excluding the financials sector Asset allocation: 100% equities Investment strategy: Passively tracks the S&P 500 ex-Financials Index, providing exposure to large-cap U.S. companies outside the financial sector

Objective

The ETF aims to provide investors with:

• Diversification: by excluding financials, the ETF reduces sector-specific risks
• Benchmark tracking: closely tracks the performance of the S&P 500 ex-Financials Index
• Potential for growth: captures the growth potential of non-financial sectors within the S&P 500

Issuer

ProShares

• Reputation and Reliability: Established ETF issuer with a track record of over 20 years, known for innovative and thematic ETFs.
• Management: Experienced team with expertise in ETF development and management.

Market Share

ProShares S&P 500® ex-Financials ETF is a relatively small ETF with a market share of approximately 0.1% within the S&P 500 ex-Financials ETF category.

Total Net Assets

~$450 million as of November 2023.

Moat

• Unique Strategy: One of the few ETFs offering exposure to the S&P 500 ex-Financials Index.
• Liquidity: Relatively high trading volume compared to other sector-specific ETFs.

Financial Performance

• Historical Performance: Outperformed the S&P 500 Index in some periods, particularly during times of financial sector weakness.
• Benchmark Comparison: Generally tracks the S&P 500 ex-Financials Index closely.

Growth Trajectory

The ETF's growth is tied to the performance of the S&P 500 ex-Financials Index and the overall market environment.

Liquidity

• Average Trading Volume: ~100,000 shares per day.
• Bid-Ask Spread: Relatively tight, indicating efficient trading.

Market Dynamics

Factors affecting the ETF include:

• Economic indicators: Interest rates, inflation, and economic growth.
• Sector growth prospects: Performance of non-financial sectors within the S&P 500.
• Market volatility: Overall market sentiment and risk aversion.

Competitors

• iShares S&P 500 ex Financials Sector UCITS ETF (SXFN): 0.4% market share
• Xtrackers S&P 500 ex Financials UCITS ETF (XSFP): 0.3% market share

Expense Ratio

0.35%

Investment Approach and Strategy

• Strategy: Passively tracks the S&P 500 ex-Financials Index.
• Composition: Holds a portfolio of stocks mirroring the index, primarily in the technology, healthcare, and consumer discretionary sectors.

Key Points

• Provides exposure to large-cap U.S. companies outside the financial sector.
• Offers diversification benefits.
• Tracks the S&P 500 ex-Financials Index closely.
• Relatively high liquidity.

Risks

• Volatility: Shares the volatility of the underlying index and the broader market.
• Sector-specific risks: Concentration in non-financial sectors could lead to underperformance during times of outperformance in the financial sector.

Who Should Consider Investing

• Investors seeking exposure to the S&P 500 ex-Financials Index.
• Investors looking for diversification within their portfolio.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI

7/10

The ETF receives a good rating based on its strong track record, unique strategy, and competitive expense ratio. However, its market share is relatively small, and its performance depends on the performance of the non-financial sectors in the S&P 500.

Resources and Disclaimers

• ProShares S&P 500® ex-Financials ETF website: https://www.proshares.com/etfs/exfinancials
• S&P 500® ex-Financials Index: https://us.spindices.com/indices/equity/sp-500-ex-financials-index

This information is for educational purposes only and should not be considered as investment advice. Please consult with a financial professional before making any investment decisions.