ProShares S&P 500 Ex-Technology ETF: Key Facts and Insights
The ProShares S&P 500 Ex-Technology ETF (SPXT) aims to provide broad exposure to the Large Cap Blend segment of the U.S. equity market. Launched on September 22, 2015, it is a passively managed exchange-traded fund (ETF) sponsored by ProShares. With assets exceeding $200.75 million, SPXT ranks as an average-sized ETF targeting this segment of the market.
Understanding Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. These firms are usually stable and exhibit predictable cash flows, making them less volatile compared to mid and small cap companies. Blend ETFs combine both growth and value stocks, embodying characteristics from both investment categories.
Cost Considerations
Cost plays a crucial role in choosing the right ETF. Lower-cost funds often outperform their pricier counterparts when other fundamentals remain the same. SPXT features annual operating expenses of just 0.09%, positioning it among the least expensive options in its category. Additionally, it boasts a 12-month trailing dividend yield of 1.40%.
Sector Exposure and Holdings
While ETFs typically provide diversified exposure, it’s important for investors to examine individual fund holdings. Fortunately, most ETFs, including SPXT, maintain transparency about their holdings. This ETF allocates approximately 20.70% of its portfolio to the Financials sector, followed closely by Healthcare and Consumer Discretionary sectors.
A significant portion of SPXT’s assets is concentrated in major companies. Amazon.com Inc (AMZN) constitutes about 5.47% of the total assets, followed by Meta Platforms Inc-Class A (META) and Berkshire Hathaway Inc-Class B (BRK/B). The top ten holdings combined represent roughly 25.14% of total assets under management.
Performance and Risk Profile
SPXT’s goal is to match the performance of the S&P 500 Ex-Information Technology & Telecommunication Services Index, excluding companies in those sectors. So far this year, the ETF has declined approximately -1.85%, while it has gained around 9.92% over the past year, as of April 30, 2025. Over the last 52 weeks, SPXT has traded between $81.62 and $97.02.
With a beta of 0.92 and a standard deviation of 15.91% for the trailing three-year period, SPXT is categorized as a medium-risk choice. It encompasses about 435 holdings, effectively mitigating company-specific risks.
Alternative Options
SPXT holds a Zacks ETF Rank of 2 (Buy), based on factors such as expected asset class return, expense ratio, and momentum. This makes it a solid choice for investors focusing on the Style Box – Large Cap Blend segment. There are other ETFs worth considering, such as the SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 ETF (VOO), which also track similar indices. The SPDR S&P 500 ETF has $575.77 billion in assets, while the Vanguard S&P 500 ETF holds $585.72 billion. SPY has an expense ratio of 0.09%, compared to VOO’s 0.03%.
Conclusion
Passively managed ETFs like SPXT have gained popularity among both retail and institutional investors. They offer several advantages, including low costs, transparency, flexibility, and tax efficiency, making them appealing vehicles for long-term investors.
For more detailed information about SPXT and other ETFs, it’s beneficial to research products that align with your investment objectives and stay updated on industry developments.
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ProShares S&P 500 Ex-Technology ETF (SPXT): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Meta Platforms, Inc. (META): Free Stock Analysis Report
The views expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.
