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ProShares S&P 500 Ex-Technology ETF likely to underperform due to tech exposure limits and factor mix.

Analyst Insights
15 Aug 2026, 04:47 WIB
Seeking Alpha
View Source
Bearish
ProShares S&P 500 Ex-Technology ETF likely to underperform due to tech exposure limits and factor mix.

The ProShares S&P 500 Ex-Technology ETF (SPXT) aims to reduce the heavy concentration of IT stocks in the S&P 500 but struggles to outperform the broader market. SPXT cannot completely avoid tech-like exposures, and excluding IT sector stocks limits its potential gains, negatively impacting both cumulative and risk-adjusted returns. Its portfolio leans more towards value and low volatility stocks compared to the iShares Core S&P 500 ETF (IVV), but it falls short on growth-at-a-reasonable-price (GARP) metrics, which is a key weakness. Due to this factor composition, SPXT is unlikely to outperform IVV in the current year.

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