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

The ProShares S&P 500 Ex-Technology ETF (SPXT), a passively managed fund launched in 2015, tracks the S&P 500 excluding Information Technology and Telecommunication Services, currently holding over $207 million in assets. With a low 0.09% expense ratio, SPXT primarily allocates to Financials (20.90%), Consumer Discretionary, and Telecom, and has returned 14.99% over the past year. Ranked a Zacks ETF Rank 2 (Buy), this medium-risk ETF offers a diversified large-cap blend option for portfolios seeking to reduce concentration in the technology sector.

Analysis

The ProShares S&P 500 Ex-Technology ETF (SPXT) is a passively managed fund designed to provide investors with exposure to the large-cap blend segment of the U.S. market, specifically excluding companies in the Information Technology sector. With assets of $207.08 million, it is a mid-sized ETF featuring a competitive annual expense ratio of 0.09%. The fund's portfolio is heavily weighted towards the Financials sector, which constitutes 20.90% of its holdings. A critical nuance for investors is that despite its 'Ex-Technology' mandate, its top holdings include Amazon, Meta Platforms, and Alphabet, indicating these firms are classified outside the traditional IT sector by its underlying index. The top ten holdings account for a significant 26.74% of the fund's assets. From a performance perspective, SPXT has delivered a 14.99% return over the past year and 5.38% year-to-date as of July 1, 2025. Its risk profile is characterized as medium, with a beta of 0.91 suggesting slightly lower volatility than the broader S&P 500, and a three-year standard deviation of 14.87%. The fund's strategy and characteristics have earned it a Zacks ETF Rank of 2 (Buy), positioning it as a potentially favorable option.

Key Decisions for Investors

• Investors looking to de-risk from the high concentration in the Information Technology sector while maintaining broad U.S. large-cap exposure may find SPXT a suitable tactical tool, given its explicit exclusion of the IT sector and overweight in Financials.
• It is crucial to recognize that the 'Ex-Technology' label does not exclude major tech-adjacent firms like Amazon, Meta, and Alphabet, so investors will retain significant exposure to these mega-cap growth drivers.
• With a beta of 0.91 and a Zacks 'Buy' rating, the fund could be considered for portfolios seeking market participation with potentially lower volatility compared to tech-heavy benchmarks.
• While the 0.09% expense ratio is low, investors should weigh this against even cheaper broad-market alternatives like VOO (0.03%) and consider if the specific strategic tilt justifies the cost difference and the fund's more moderate asset base.