ProShares S&P 500® ex-Energy ETF (SPXE)

Overview

The ProShares S&P 500 ex-Energy ETF (SPXE) seeks investment results that correspond to the performance of the S&P 500 Ex-Energy Index. It provides exposure to the S&P 500 while excluding companies classified within the energy sector. This offers investors targeted exposure to the U.S. equity market excluding energy.

Reputation and Reliability

ProShares is a well-established issuer known for its diverse range of ETFs, including leveraged and inverse products. It has a solid reputation for innovation and providing targeted investment strategies.

Management Expertise

ProShares has a dedicated team of investment professionals with extensive experience in managing and structuring ETFs. Their expertise in quantitative strategies contributes to the fund's management.

Goal

To seek investment results, before fees and expenses, that correspond to the performance of the S&P 500 Ex-Energy Index.

Investment Approach and Strategy

Strategy: This ETF tracks a specific index, the S&P 500 Ex-Energy Index.

Composition The ETF primarily holds stocks included in the S&P 500 index, excluding companies in the energy sector. It's a market-cap-weighted index.

Market Share: SPXE has a modest market share within the broader universe of S&P 500-related ETFs and specialized sector exclusion ETFs.

Total Net Assets (AUM): 35000000

Key Competitors

• SPY (SPY)
• IVV (IVV)
• VOO (VOO)

Competitive Landscape

The competitive landscape is dominated by broad market S&P 500 ETFs, SPY, IVV and VOO. SPXE offers niche exposure by excluding the energy sector, potentially appealing to investors with specific sector views. Competitors have higher liquidity and AUM, but SPXE provides targeted portfolio customization. However, due to the exclusion of energy, this fund does not perform the same as the S&P500.

Historical Performance: Historical performance will closely mirror the S&P 500 excluding energy sector performance. Data needs to be retrieved from financial data source to output in array format.

Benchmark Comparison: The ETFu2019s performance should closely track the S&P 500 Ex-Energy Index, demonstrating tracking effectiveness.

Expense Ratio: 0.09

Average Trading Volume

The ETF's liquidity, as measured by average trading volume, is moderate compared to more popular S&P 500 ETFs.

Bid-Ask Spread

The bid-ask spread for SPXE is typically wider than that of highly liquid ETFs like SPY.

Market Environment Factors

Economic indicators, market sentiment towards the energy sector, and overall equity market performance influence SPXE. Interest rate fluctuations, inflation, and geopolitical events impacting the broader market can affect SPXE's performance.

Growth Trajectory

Growth is tied to the overall performance of the S&P 500 excluding the energy sector. Changes in investor sentiment toward energy, regulatory changes, or shifts in sector composition within the S&P 500 can impact its future trajectory.

Competitive Edge

SPXE's competitive advantage lies in its targeted exposure. It offers investors a way to participate in the S&P 500 without the energy sector, appealing to those who want to avoid that sector for ethical, environmental, or economic reasons. The ETF simplifies the process of excluding energy stocks from an S&P 500 investment. SPXE offers a low-cost option, however, may lack diversification. It is one of the few ETFs offering this specific type of targeted S&P 500 exclusion.

Volatility

SPXE's volatility should be similar to the S&P 500, but may be slightly lower due to the exclusion of the energy sector, which can be volatile.

Market Risk

Market risk is inherent, as SPXE is subject to fluctuations in the overall equity market. Specific risks include sector concentration (excluding energy) and tracking error relative to the S&P 500 Ex-Energy Index.

Ideal Investor Profile

The ideal investor is someone who wants exposure to the S&P 500 but wishes to exclude the energy sector. This could be based on ethical concerns, investment strategies focusing on specific sectors, or views on the future performance of the energy sector.

Market Risk

SPXE is suitable for long-term investors seeking broad market exposure with a specific sector exclusion. Active traders could use it for tactical sector allocation, but should be aware of liquidity.

The ProShares S&P 500 ex-Energy ETF (SPXE) offers investors a targeted approach to investing in the S&P 500 while excluding the energy sector. It tracks the S&P 500 Ex-Energy Index, providing exposure to the broad market excluding energy companies. SPXE has a lower expense ratio than some specialized ETFs and may be suitable for investors seeking customization for sector selection. However, investors should be aware of the relative liquidity compared to other broad S&P500 ETFs.

Data Sources:

• ProShares Official Website
• Financial News Providers
• ETF Database

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and seek professional advice before making any investment decisions. Market data and information is obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. Past performance is not indicative of future results.