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

Overview

The ProShares S&P 500 ex-Financials ETF (SPXN) seeks investment results that correspond to the performance of the S&P 500 ex-Financials Index. It aims to provide exposure to the S&P 500 while excluding companies in the Financials sector, offering a different sector weighting compared to the broader S&P 500.

Reputation and Reliability

ProShares is a well-known issuer of ETFs, particularly recognized for its leveraged and inverse products. It has a long track record and is considered a reliable provider.

Management Expertise

ProShares has a dedicated management team with experience in creating and managing various types of ETFs, including sector-specific and strategic beta products.

Goal

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

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, seeking to replicate the performance of the S&P 500 ex-Financials Index.

Composition The ETF holds a portfolio of stocks that constitute the S&P 500 Index, excluding those classified within the Financials sector. It is generally heavily weighted towards technology.

Market Share: SPXN has a moderate market share within the universe of S&P 500 ex-sector ETFs.

Total Net Assets (AUM): 68130000

Key Competitors

• SPDR S&P 500 ETF Trust (SPY)
• Invesco QQQ Trust (QQQ)
• iShares Core S&P 500 ETF (IVV)

Competitive Landscape

The competitive landscape is dominated by broad market ETFs like SPY and IVV. SPXN offers a niche alternative for investors seeking to avoid Financials sector exposure. Its advantage lies in its specific sector exclusion, but it lacks the broad appeal and liquidity of larger, more diversified ETFs.

Historical Performance: Historical performance mirrors the S&P 500, excluding Financials, showing strong gains in bull markets and declines in bear markets. Specific numerical data requires external source lookup.

Benchmark Comparison: The ETF's performance should closely track the S&P 500 ex-Financials Index. Any deviations are primarily due to fees and tracking error.

Expense Ratio: 0.09

Average Trading Volume

The average trading volume is moderate, reflecting its smaller AUM compared to broad market ETFs.

Bid-Ask Spread

The bid-ask spread is typically relatively tight, indicating good liquidity for typical trading sizes.

Market Environment Factors

Economic growth, interest rate movements, and overall market sentiment all influence SPXN. The performance of the non-financial sectors within the S&P 500 heavily dictates its returns.

Growth Trajectory

The ETF's growth is tied to investor demand for sector-specific exposure. Any changes to the underlying index composition or strategy would impact its trajectory.

Competitive Edge

SPXN's competitive edge lies in its targeted exposure to the S&P 500 without the Financials sector. This allows investors to express a view on the relative performance of non-financial sectors. The ETF differentiates itself through its niche focus, catering to investors who may have concerns about the financial sector's performance or prefer a different sector allocation within their portfolio. While it doesn't have a wide economic moat, its specialized approach offers a distinct investment option.

Volatility

The ETF's volatility is generally comparable to the S&P 500, though excluding financials can lead to slightly higher or lower volatility depending on the market environment.

Market Risk

Market risk is a primary concern, as the ETF is subject to broad market fluctuations. Sector-specific risks related to the non-financial sectors within the S&P 500 also apply.

Ideal Investor Profile

Investors who want exposure to the S&P 500 but wish to avoid the Financials sector are the ideal investors. Those seeking sector diversification or have a negative outlook on the financial industry.

Market Risk

Suitable for long-term investors looking for broad market exposure but with a modified sector allocation. Active traders may use it for tactical sector plays.

The ProShares S&P 500 ex-Financials ETF (SPXN) provides investors with exposure to the S&P 500 while excluding companies in the Financials sector. This allows for a targeted investment strategy based on sector preferences or outlook. It's suitable for investors seeking a modified version of the S&P 500, but it has lower AUM and trading volumes compared to broader market ETFs. The ETF's performance closely tracks its benchmark, and its expense ratio is competitive.

Data Sources:

• ProShares official website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.