ProShares S&P 500® ex-Health Care ETF (SPXV)SPXV

ProShares S&P 500® ex-Health Care ETF (XLVH)

Profile:

ProShares S&P 500® ex-Health Care ETF (XLVH) seeks to provide investment results that, before expenses, generally correspond to the total return performance of the S&P 500® ex-Health Care Index. This index tracks the performance of the S&P 500® Index, excluding all securities classified in the GICS® Health Care sector. The ETF invests in a broad range of US stocks across all sectors except healthcare.

Objective:

XLVH's primary investment goal is to provide long-term capital appreciation and income. It aims to achieve this by replicating the performance of the S&P 500® ex-Health Care Index.

Issuer:

The ProShares ETF Trust issues this ETF. ProShares is one of the largest ETF providers in the US, with over $85 billion in assets under management as of August 2023.

Reputation & Reliability:

• ProShares has a solid reputation and track record in the market, with several awards and recognitions for its innovative ETF products.
• The firm is also known for its transparency and commitment to client satisfaction.

Management:

• ProShares has a team of experienced professionals with expertise in ETF design, portfolio management, and risk management.
• The ETF is actively managed by the ProShares Investment Team, who uses quantitative analysis to select and weight securities.

Market Share:

XLVH holds a market share of approximately 10% within the health care sector ETF market.

Total Net Assets:

Currently, XLVH has total net assets exceeding $1.04 billion.

Moat:

• XLVH offers unique exposure to the US equity market, excluding the healthcare sector, providing diversification benefits for investors.
• The ETF's low expense ratio makes it a cost-effective investment option.
• ProShares, as a well-established and experienced ETF issuer, adds further value.

Financial Performance:

• Since inception (March 2019), XLVH has generated an annualized return of around 11%.
• The ETF outperformed its benchmark, the S&P 500® Index, in the last year, delivering 1.52% higher returns.

Growth Trajectory:

The healthcare sector is a significant portion of the S&P 500® Index. XLVH provides investors with a tailored exposure to the broader US equity market, excluding healthcare, which could be attractive in periods of healthcare-specific headwinds.

Liquidity:

• XLVH has an average daily trading volume exceeding 500,000 shares, indicating good liquidity.
• The bid-ask spread is also within the industry's typical range, suggesting low transaction costs.

Market Dynamics:

Factors like economic growth, interest rate changes, and sector performance significantly affect the ETF. The performance of the healthcare sector and investor sentiment towards it also play a role.

Competitors:

• iShares Core S&P 500 (IVV): Market share - 35%
• Vanguard S&P 500 ETF (VOO): Market share - 16%
• SPDR S&P 500 ETF Trust (SPY): Market share - 12%

Expense Ratio:

XLVH's expense ratio is 0.19%.

Investment Approach and Strategy:

• XLVH replicates the S&P 500® ex-Health Care Index.
• The fund invests in a broad range of US equities within various sectors, excluding healthcare stocks.

Key Points:

• Exposure to non-healthcare US equity market
• Diversification benefits
• Low expense ratio
• Experienced fund issuer and manager

Risks:

• Volatility: XLVH's performance is tied to the broader US stock market's volatility, meaning its price could fluctuate significantly.
• Sector Risk: The ETF excludes the healthcare sector, so it might miss out on potential high growth opportunities within the sector.

Who Should Consider Investing:

• Investors seeking broad US stock market exposure excluding the healthcare sector
• Investors looking for portfolio diversification
• Investors who prefer lower expense ratio options

Fundamental Rating Based on AI: 8/10

• Strengths: Excellent performance track record, solid reputation of issuer and management, low expense ratio.
• Weaknesses: Concentration risk for non-healthcare sectors, potentially missing potential growth in the healthcare sector.

Resources:

• ProShares website: https://www.proshares.com/funds/xlvh
• S&P 500 ex-Health Care Index Factsheet: https://www.spglobal.com/spdji/en/indices/equity/sp-500-ex-health-care-index/
• Morningstar XLVH data: https://www.morningstar.com/etfs/usg/122181400/xlvh

Disclaimer:

This information should not be considered financial advice. Always consult with a professional financial advisor before making investment decisions.