ProShares S&P 500® ex-Technology ETF (SPXT)

Overview

The ProShares S&P 500u00ae ex-Technology ETF (SPXT) provides exposure to the S&P 500 while excluding companies classified in the Information Technology sector. It offers investors a way to diversify away from the tech-heavy components of the broader market, focusing on other sectors like Healthcare, Financials, and Industrials. Its investment strategy is to track the performance of the S&P 500 ex-Technology Index.

Reputation and Reliability

ProShares is a well-established ETF issuer known for its extensive suite of leveraged and inverse ETFs as well as other specialized products. They have a solid track record in delivering the intended investment outcomes.

Management Expertise

ProShares has a dedicated team of investment professionals with considerable experience in managing and tracking various indices and investment strategies.

Goal

To provide investment results that, before fees and expenses, correspond to the performance of the S&P 500u00ae ex-Technology Index.

Investment Approach and Strategy

Strategy: The ETF aims to replicate the performance of the S&P 500u00ae ex-Technology Index, which excludes all companies classified as Information Technology under the Global Industry Classification Standard (GICS).

Composition The ETF holds stocks of companies included in the S&P 500 index, excluding those in the Information Technology sector.

Market Share: SPXT's market share is small given the niche nature of its investment strategy.

Total Net Assets (AUM): 159792053

Key Competitors

• SPY (SPDR S&P 500 ETF Trust)
• IVV (iShares CORE S&P 500 ETF)
• VOO (Vanguard S&P 500 ETF)

Competitive Landscape

The ETF industry is highly competitive, dominated by large, broad-market ETFs like SPY, IVV, and VOO. SPXT distinguishes itself by offering a technology-excluding option, which can be advantageous when investors anticipate tech underperformance. SPXT's competitive advantage is its targeted exposure, but it suffers from lower liquidity and AUM compared to broad-based ETFs.

Historical Performance: Historical performance data needs to be sourced externally and will vary. A performance array cannot be statically generated without live data access.

Benchmark Comparison: The ETF's performance should be compared to the S&P 500 index's performance excluding the technology sector.

Expense Ratio: 0.09

Average Trading Volume

The average trading volume for SPXT is relatively low, which may impact ease of trading.

Bid-Ask Spread

The bid-ask spread can be wider compared to more liquid ETFs, potentially increasing transaction costs.

Market Environment Factors

Economic growth, interest rate changes, and sector-specific trends (outside of technology) influence SPXT's performance. Sector rotation strategies also play a role.

Growth Trajectory

SPXT's growth is dependent on investor demand for strategies that underweight technology stocks, and there have not been any major strategy changes or holding changes since inception.

Competitive Edge

SPXT's competitive edge lies in its targeted exclusion of technology stocks from the S&P 500, catering to investors with specific sector views. This unique approach differentiates it from broad-market ETFs. Investors may use SPXT to hedge against potential tech sector corrections or to overweight other sectors they believe will outperform. This sector-specific focus allows investors to tailor their exposure more precisely.

Volatility

Volatility is dependent on the sectors included in the ex-technology index, so its performance might be more volatile than the whole S&P 500.

Market Risk

Specific risks include sector concentration risk outside of technology, and the risk that the technology sector may outperform, leading SPXT to underperform the broader market.

Ideal Investor Profile

Investors seeking to underweight technology stocks or diversify their portfolio away from tech's influence may find SPXT suitable.

Market Risk

SPXT may be suited for both long-term investors seeking targeted sector exposure and active traders implementing sector rotation strategies.

The ProShares S&P 500u00ae ex-Technology ETF (SPXT) offers investors a means to gain exposure to the S&P 500 while specifically excluding technology stocks. This can be useful for those seeking to diversify away from the tech-heavy composition of the overall market or those who have a bearish outlook on the technology sector. Compared to broad-based S&P 500 ETFs, SPXT has lower liquidity and AUM. It caters to a niche investor profile seeking targeted sector exposure.

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Data Sources:

• ProShares Official Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on thorough research and consultation with a financial advisor.