Ex-Sector ETFs Can Be Used to Tailor Core U.S. Equity Exposure
BETHESDA, Md., February 14, 2022--(BUSINESS WIRE)--ProShares, a premier provider of ETFs, announced that it has lowered the net expense ratio for its suite of S&P 500 Ex-Sector ETFs by 67% – from 27 to 9 basis points. The Ex-Sector ETFs allow investors to acquire the S&P 500 without an unwanted economic sector, including energy, financials, technology and health care.
"With this fee reduction, we wanted to eliminate a possible obstacle for investors to access a strategy that could help them build better portfolios," said ProShares CEO Michael L. Sapir. "ProShares Ex-Sector ETFs provide a cost-effective way to tailor the S&P 500 index to avoid overconcentration in a certain sector or a sector expected to underperform."
Launched in September 2015, the ProShares S&P 500 Ex-Sector ETFs include:
S&P 500 Ex-Energy ETF
S&P 500 Ex-Energy Index
S&P 500 Ex-Financials ETF
S&P 500 Ex-Financials & Real Estate Index
S&P 500 Ex-Health Care ETF
S&P 500 Ex-Health Care Index
S&P 500 Ex-Technology ETF
S&P 500 Ex-Information Technology Index
* With Contractual Waiver ending 9/30/23.
ProShares S&P 500 Ex-Sector ETFs allow investors to reduce or eliminate exposure to a sector they believe may underperform. Alternatively, an investor might already have enough exposure to a sector through work or other holdings and can use these ETFs to avoid that sector. Prior to the introduction of Ex-Sectors, investors would need to purchase, monitor and rebalance a portfolio of sector ETFs to create the portfolio available as a single Ex-Sector ETF.
All four ETFs are traded on NYSE Arca.
SPXE and SPXN earned an Overall Morningstar Rating of 5 stars, and SPXV earned an Overall Morningstar Rating of 4 stars, in the U.S. Large Blend Category as of December 31, 2021.
About the Indexes
Each S&P 500 Ex-Sector Index seeks to provide exposure to the companies of the S&P 500 except those in the specific sector excluded. The S&P 500 is a measure of large-cap U.S. stock market performance. It is a float-adjusted, market capitalization weighted index of 500 U.S. operating companies and real estate investment trusts selected through a process that factors in criteria such as liquidity, price, market capitalization and financial viability.
The indexes market-cap weight each component security according to the same rules as the S&P 500. They classify each company in the S&P 500 using S&P’s Global Industry Classification Standards ("S&P GICS"). The following sectors are included within the S&P GICS: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services and utilities. The portion represented by the excluded sector is redistributed among the remaining S&P 500 companies on a pro rata basis.
ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than $65 billion in assets. The company is the leader in strategies such as dividend growth, interest rate hedged bond and geared (leveraged and inverse) ETF investing. ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.
Investing involves risk, including the possible loss of principal. These ProShares ETFs are subject to certain risks, including the risk that the funds may not track the performance of the indexes and that the funds’ market prices 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.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.
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.
Star rating is © 2022 Morningstar, Inc. All Rights Reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The Morningstar RatingTM for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. Star ratings are calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars, and the bottom 10% receive one star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. SPXE, SPXV and SPXN were rated against the following numbers of U.S.-domiciled Large Blend funds for the following time periods: 1244 for the last three years and 1109 for the last five years, ending 12/31/21. With respect to these Large Blend funds, SPXE received a Morningstar Rating of 4 stars for the three-year period and 5 stars for the five-year period. SPXN received 4 stars for the three-year period and 5 stars for the five-year period. SPXV received 4 stars for the three-year period and 4 stars for the five-year period. Past performance is no guarantee of future results.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor.
©2022 PSA PR-2022-3752772.2
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