Should ProShares S&P 500 Ex-Technology ETF (SPXT) Be on Your Investing Radar?

Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the ProShares S&P 500 Ex-Technology ETF (SPXT) is a passively managed exchange traded fund launched on 09/22/2015.The fund is sponsored by Proshares. It has amassed assets over $200.08 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.Why Large Cap BlendCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.23%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 20.30% of the portfolio. Consumer Discretionary and Healthcare round out the top three.Looking at individual holdings, Amazon.com Inc (AMZN) accounts for about 6.12% of total assets, followed by Meta Platforms Inc-Class A (META) and Alphabet Inc-Cl A (GOOGL).The top 10 holdings account for about 27.04% of total assets under management.Performance and RiskSPXT seeks to match the performance of the S&P 500 Ex-Information Technology & Telecommunication Services Index before fees and expenses. The S&P 500 Ex-Information Technology Index provide exposure to the companies of the S&P 500 with the exception of those companies included in the information technology sector.The ETF return is roughly 4.68% so far this year and is up about 24.85% in the last one year (as of 01/24/2025). In the past 52-week period, it has traded between $77.96 and $95.85.The ETF has a beta of 0.95 and standard deviation of 15.10% for the trailing three-year period, making it a medium risk choice in the space. With about 435 holdings, it effectively diversifies company-specific risk.AlternativesProShares S&P 500 Ex-Technology ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPXT is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $610.05 billion in assets, SPDR S&P 500 ETF has $647.31 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 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 Alphabet Inc. (GOOGL): Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks