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

Overview

The ProShares S&P 500 ex-Technology ETF (SPXT) seeks investment results that correspond to the performance of the S&P 500 ex-Information Technology Index. It provides exposure to large-cap U.S. equities while excluding companies in the Information Technology sector, offering diversification across other sectors.

Reputation and Reliability

ProShares is a well-established issuer known for its suite of strategy and alternative ETFs, with a good reputation for delivering targeted exposures.

Management Expertise

ProShares has a dedicated team experienced in managing various ETFs, including those with targeted sector exposures.

Goal

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

Investment Approach and Strategy

Strategy: The ETF employs a replication strategy, meaning it invests in all the securities of the underlying index in proportion to their weighting in the index.

Composition The ETF's composition consists primarily of stocks from the S&P 500 index, excluding the Information Technology sector. Holdings include companies in financials, healthcare, consumer discretionary, and other non-tech sectors.

Market Share: SPXT's market share within the ex-Technology ETF category is moderate, as it's a niche product.

Total Net Assets (AUM): 25880000

Key Competitors

• Invesco S&P 500 Equal Weight ETF (RSP)
• SPDR S&P 500 ETF Trust (SPY)
• Vanguard S&P 500 ETF (VOO)

Competitive Landscape

The competitive landscape includes broad market ETFs and other sector-specific ETFs. SPXT offers a unique value proposition by excluding the technology sector, appealing to investors seeking diversification away from tech. Competitors such as RSP offer equal weight exposure to the S&P 500, while SPY and VOO offer broad market exposure including tech.

Historical Performance: Historical performance varies based on the relative performance of the technology sector versus other sectors. Data must be requested from a financial API or source.

Benchmark Comparison: The ETF's performance is benchmarked against the S&P 500 ex-Information Technology Index. Data must be requested from a financial API or source.

Expense Ratio: 0.09

Average Trading Volume

The average trading volume is moderate, indicating sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting sufficient market interest and liquidity.

Market Environment Factors

Economic indicators, sector growth prospects outside of technology, and overall market sentiment significantly influence SPXT's performance.

Growth Trajectory

Growth depends on investor demand for non-tech exposure and the relative performance of other sectors compared to technology.

Competitive Edge

SPXT's competitive advantage lies in its targeted exposure to the S&P 500 excluding the tech sector. This allows investors to express a specific view on the tech sector's performance relative to the broader market. The ETF's low expense ratio also contributes to its attractiveness. It's suitable for investors seeking diversification or those who are underweight the technology sector in their portfolios.

Volatility

Volatility is expected to be similar to the S&P 500, potentially lower depending on the relative volatility of the tech sector.

Market Risk

Specific risks include sector concentration risk in non-tech sectors and the potential underperformance relative to the S&P 500 if the tech sector outperforms.

Ideal Investor Profile

The ideal investor is one who seeks broad market exposure while intentionally underweighting or excluding the technology sector.

Market Risk

This ETF is suitable for long-term investors seeking diversified exposure outside of technology, as well as those implementing tactical asset allocation strategies.

ProShares S&P 500 ex-Technology ETF (SPXT) offers a targeted exposure to the S&P 500 without the technology sector, making it appealing to investors seeking diversification or expressing a view on tech's relative performance. The ETF has moderate liquidity, a low expense ratio, and tracks its benchmark closely. While it carries sector concentration risk in non-tech areas, SPXT provides a valuable tool for strategic asset allocation. Its suitability is best for long-term investors aiming for broad market exposure while underweighting technology companies, or for tactical opportunities.

Data Sources:

• ProShares website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market share data can fluctuate.