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 $200.75 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 Blend

Companies 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.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 1.40%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 20.70% of the portfolio. Healthcare and Consumer Discretionary round out the top three.

Looking at individual holdings, Amazon.com Inc (AMZN) accounts for about 5.47% of total assets, followed by Meta Platforms Inc-Class A (META) and Berkshire Hathaway Inc-Cl B (BRK/B).

The top 10 holdings account for about 25.14% of total assets under management.

Performance and Risk

SPXT 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 has lost about -1.85% so far this year and it's up approximately 9.92% in the last one year (as of 04/30/2025). In the past 52-week period, it has traded between $81.62 and $97.02.

The ETF has a beta of 0.92 and standard deviation of 15.91% 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.

Alternatives

ProShares S&P 500 Ex-Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPXT is an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.

The SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 ETF (VOO) track a similar index. While SPDR S&P 500 ETF has $575.77 billion in assets, Vanguard S&P 500 ETF has $585.72 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.

Bottom-Line

An 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.

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This article originally published on Zacks Investment Research (zacks.com).

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