6 Reasons to Exclude a Sector from Your S&P 500 Portfolio

STRATEGY Ex-Sector
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  • The S&P 500 has been among the best known and the most widely used U.S. Equity benchmarks for decades. 

  • Today, investors increasingly demand customization and flexibility for their portfolios.

  • ProShares Ex-Sector ETFs allow investors to tailor the S&P 500, making it simple to underweight or even eliminate a sector in a portfolio. 

Here's how an Ex-Sector may be used as a core holding or a replacement for a traditional S&P 500 fund.
To potentially enhance return by avoiding a sector because of...
 

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A sector's long-term prospects: Could energy companies struggle to transition from fossil fuels to green energy sources?

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The business cycle: Could declining interest rates hurt financial companies' profits?


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Fundamentals and price: Are tech stocks richly valued relative to their projected future earnings? 

 

To potentially reduce risk by diversifying a concentrated holding...

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A professional working in a particular sector–a health care executive, for example–may be adequately exposed to that sector's fortunes.    

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An individual may want to manage the single-company risk of a stock gifted or inherited from a family member. 

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An investor may have "high-conviction" holdings focused in a particular sector. 

 

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SPXE

S&P 500 Ex-Energy ETF

Excludes oil, gas and consumable fuels, and energy equipment and services companies.

SPXN

S&P 500 Ex-Financials ETF

Excludes banks, diversified financials, such as consumer finance, asset management, investment banking and brokerage companies, insurance companies and REITs.

SPXT

S&P 500 Ex-Technology ETF

Excludes information technology companies, including software, technology hardware and equipment, and semiconductor companies.

SPXV

S&P 500 Ex-Health Care ETF

Excludes pharmaceuticals, biotechnology and life sciences tools and services companies, and health care providers, equipment and services companies.

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This information is not meant to be investment advice.

Investing is currently subject to additional risks and uncertainties related to COVID-19, including general economic, market and business conditions; changes in laws or regulations or other actions made by governmental authorities or regulatory bodies; and world economic and political developments.


Investing involves risk, including the possible loss of principal. This ProShares ETF is subject to certain risks, including the risk that the fund may not track the performance of the index and that the fund’s market price may fluctuate, which may decrease performance. Please see summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.


These funds are exposed to the stocks of large-cap companies, which tend to go through cycles of outperformance or underperformance lasting up to several years relative to other segments of the stock market. As a result, large-cap returns may trail the returns of the overall stock market or other market segments.


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The “S&P 500 Ex-Energy Index,” “S&P 500 Ex-Financials & Real Estate Index,” “S&P 500 Ex-Health Care Index,” and “S&P 500 Ex-Information Technology Index” are products of S&P Dow Jones Indices LLC and its affiliates and have been licensed for use by ProShares. “S&P®” is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones®” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. ProShares have not been passed on by S&P Dow Jones Indices LLC and its affiliates as to their legality or suitability. ProShares based on these indexes are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.

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