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

The ProShares S&P 500 Ex-Technology ETF (SPXT) was launched on 09/22/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.

The fund is sponsored by Proshares. It has amassed assets over $207.08 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 Blend

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

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 1.28%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector--about 20.90% of the portfolio. Consumer Discretionary and Telecom round out the top three.

Looking at individual holdings, Amazon.com Inc (AMZN) accounts for about 5.88% of total assets, followed by Meta Platforms Inc-Class A (META) and Alphabet Inc-Cl A (GOOGL).

The top 10 holdings account for about 26.74% 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 gained about 5.38% so far this year and it's up approximately 14.99% in the last one year (as of 07/01/2025). In the past 52-week period, it has traded between $81.62 and $97.02.

The ETF has a beta of 0.91 and standard deviation of 14.87% 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 $636.24 billion in assets, Vanguard S&P 500 ETF has $687.64 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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