ProShares S&P 500 Ex-Technology ETF (SPXT) seeks to track the S&P 500 Ex-Technology Index, which measures the performance of all S&P 500 companies except those classified in the technology sector. This large-cap equity ETF provides diversified exposure to approximately 400+ U.S. companies across sectors like healthcare, financials, consumer goods, and industrials.
How It Works
SPXT uses a passively managed, market-capitalization-weighted approach that mirrors its benchmark by holding all S&P 500 constituents except technology stocks. The fund maintains sector weights proportional to the modified index, with healthcare and financials typically representing the largest allocations. Rebalancing occurs quarterly to reflect index changes and maintain technology exclusion. With roughly 400 holdings, the ETF provides broad market exposure while eliminating technology sector concentration risk.
Key Features
- Eliminates technology sector concentration that represents 25-30% of standard S&P 500 index, reducing single-sector risk exposure
- Maintains large-cap quality and liquidity of S&P 500 companies while providing more balanced sector diversification across remaining industries
- Zero expense ratio makes it cost-competitive for investors seeking S&P 500 exposure without technology sector volatility and concentration
Risks
- This ETF can lose value when non-technology sectors underperform, potentially missing significant gains during technology sector rallies that drive broader market returns
- Sector rotation risk means the fund may lag during periods when technology stocks outperform, as seen in recent growth-driven market cycles
- Still subject to broad market downturns and could decline 25-35% in severe bear markets, though may show less volatility than tech-heavy indices
Who Should Own This
Best suited as a core holding (30-50% of equity allocation) for investors with 3+ year time horizons seeking S&P 500 exposure without technology concentration. Medium risk tolerance required for equity volatility. Ideal for investors concerned about technology sector valuations or seeking more balanced sector diversification in their large-cap U.S. equity exposure.