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

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

Profile

SPXT is an exchange-traded fund (ETF) that tracks the S&P 500® ex-Technology Index. This index excludes companies in the technology sector, providing exposure to a broad range of other industries within the S&P 500. SPXT seeks to provide investment results that, before expenses, generally correspond to the performance of the S&P 500® ex-Technology Index.

Objective

The primary investment goal of SPXT is to provide investors with exposure to the US stock market, excluding the technology sector. This can be attractive to investors who believe the technology sector is overvalued or who want to diversify their portfolio beyond tech stocks.

Issuer

ProShares:

• Reputation and Reliability: ProShares is a well-established ETF issuer with a strong reputation for reliability and innovation. It manages over $80 billion in assets across various ETF products.
• Management: ProShares has a team of experienced investment professionals with expertise in index tracking and ETF management.

Market Share

SPXT has a 0.2% market share in the broad market US equity ETF category.

Total Net Assets

SPXT has approximately $1.5 billion in total net assets.

Moat

SPXT's competitive advantage lies in its unique focus on the non-technology sector of the S&P 500. This allows investors to gain exposure to a diversified basket of stocks outside the tech-heavy market, potentially offering lower volatility and a hedge against technology sector downturns.

Financial Performance

Historical Performance: SPXT has delivered a total return of 17.77% since its inception in 2018.

Benchmark Comparison: SPXT has outperformed the S&P 500 Index over the past year, reflecting the strong performance of non-technology sectors.

Growth Trajectory

The non-technology sector of the S&P 500 has shown consistent growth in recent years, driven by factors like increasing consumer spending and infrastructure development. This bodes well for SPXT's future growth prospects.

Liquidity

Average Trading Volume: SPXT has an average daily trading volume of over 1 million shares, indicating good liquidity.

Bid-Ask Spread: The bid-ask spread for SPXT is typically under 0.1%, ensuring low trading costs.

Market Dynamics

Factors affecting the ETF:

• Economic growth
• Sector performance outside technology
• Interest rate fluctuations
• Global economic events

Competitors

• iShares S&P 500 Growth ETF (IVW) - Market Share: 1.5%
• Vanguard S&P 500 Value ETF (VOOV) - Market Share: 1.8%
• Invesco S&P 500® Equal Weight Technology ETF (QQEW) - Market Share: 0.4%

Expense Ratio

The expense ratio for SPXT is 0.19%, which is lower than many other sector-specific ETFs.

Investment Approach and Strategy

• Strategy: SPXT tracks the S&P 500® ex-Technology Index, which means it passively invests in the same proportions as the index.
• Composition: The ETF holds a diversified portfolio of stocks across various sectors excluding technology, including healthcare, financials, industrials, and consumer discretionary.

Key Points

• Benefits: Diversification, low cost, potential for outperformance compared to the technology-heavy market.
• Features: Focus on non-technology sectors of the S&P 500, high liquidity, and low expense ratio.

Risks

• Volatility: SPXT can experience volatility due to market fluctuations and sector-specific factors.
• Market Risk: The ETF's performance is tied to the underlying non-technology sectors, which may underperform other sectors.

Who Should Consider Investing

• Investors seeking exposure to the US stock market outside the technology sector.
• Investors looking for diversification benefits and potential downside protection.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI

Based on an AI-powered analysis of the factors mentioned above, SPXT receives a 7.5 out of 10 fundamental rating. This rating considers the ETF's strong track record, competitive advantages, and growth potential. However, investors should be aware of the inherent market risks and volatility associated with sector-specific ETFs.

Resources and Disclaimers

• Website Sources: ProShares website, ETF.com, Yahoo Finance
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.