5 min readBy Ron Koren ETF Insider
How does the TDSA ETF work?
The TDSA ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
The ProShares S&P 500 Ex-Energy ETF (SPXE) is managed by ProShare Advisors, and it aims to provide investors with exposure to the companies included in the S&P 500® Index, excluding those in the Energy Sector. The S&P 500® Index represents the performance of large-cap U.S. stocks, and it is constructed and maintained by S&P Dow Jones LLC. The index classifies companies within sectors using the Global Industry Classification Standards (GICS), and as of June 30, 2021, it includes sectors such as Consumer Discretionary, Consumer Staples, Financials, Health Care, Industrials, Information Technology, Materials, Communication Services, Real Estate, and Utilities, while excluding the Energy Sector. SPXE follows a replication strategy, investing in component securities of the Index to mirror its performance and is designed to remain fully invested at all times without regard to market conditions or trends. The ETF may also concentrate its investments to a similar extent as the Index, and as of May 31, 2021, the Index had a significant concentration in the information technology industry group. For more detailed information, refer to the Fund's Prospectus under Investment Objectives, Principal Investment Strategies, and Related Risks.
The ProShares S&P 500 Ex-Energy ETF (SPXE) focuses on tracking the performance of the S&P 500® Index while excluding companies from the Energy Sector. While its primary goal is to mirror the index, it also reflects the dividend distribution of the underlying S&P 500®. Dividend distributions from SPXE generally follow the same schedule as the S&P 500®, occurring on a quarterly basis. These distributions are influenced by the individual dividend policies and financial performance of the constituent companies within the S&P 500®, excluding those in the Energy Sector. Investors considering SPXE for their portfolio can expect to receive dividend income consistent with the S&P 500® Index, which comprises a wide range of sectors, including Consumer Discretionary, Consumer Staples, Financials, Health Care, Industrials, Information Technology, Materials, Communication Services, Real Estate, and Utilities. SPXE aims to maintain at least 80% of its assets in component securities of the S&P 500® Index, offering exposure to the performance and dividend distributions of these companies. Please refer to the Fund's Prospectus for further details on investment objectives and related risks.
At the heart of the ProShares S&P 500 Ex-Energy ETF's (SPXE) investment strategy is the tracking of the S&P 500 Ex-Energy Index. SPXE achieves this by excluding companies in the energy sector, providing investors exposure to a diverse range of U.S. large-cap stocks across various industries, excluding energy-related businesses. The ETF serves as a valuable benchmark for those looking to navigate the performance of the broader U.S. equity market while excluding the energy sector's influence. SPXE's effective tracking methodology positions it as a compelling choice for investors seeking specific exposure within the S&P 500 universe.
The correlation aspect of the ProShares S&P 500 Ex-Energy ETF (SPXE) is a key factor in understanding its behavior in relation to the broader U.S. equity market. As SPXE seeks to track the performance of the S&P 500 Index while excluding companies from the Energy Sector, its correlation with the overall market is generally high, reflecting the performance of large-cap U.S. stocks excluding energy-related companies. Investors often use SPXE as a tool for portfolio diversification and risk management, especially if they want exposure to the broader market while avoiding energy-related fluctuations. For more in-depth analysis and visualization of correlations involving SPXE and other US ETFs, the ETF Insider web app offers valuable insights and data, helping investors make informed decisions and identify overlaps in their portfolios.
The ProShares S&P 500 Ex-Energy ETF (SPXE) provides exposure to companies in the S&P 500® Index, excluding those in the Energy Sector. The S&P 500® is a benchmark for large-cap U.S. stock market performance, consisting of 500 U.S. operating companies and real estate investment trusts. SPXE follows the Global Industry Classification Standards (GICS) to define companies within sectors, including Consumer Discretionary, Consumer Staples, Financials, Health Care, Industrials, Information Technology, Materials, Communication Services, Real Estate, and Utilities. By excluding energy companies, SPXE offers investors a unique opportunity to focus on other sectors within the S&P 500®, potentially reducing exposure to energy-related market fluctuations while maintaining diversified equity exposure.
The exposure characteristic of the ProShares S&P 500® Ex-Energy ETF (SPXE) is designed to track the performance of the S&P 500® Index, with the exception of companies included in the Energy Sector. The S&P 500® Index represents the performance of large-cap U.S. stocks, covering various sectors including Consumer Discretionary, Consumer Staples, Financials, Health Care, Industrials, Information Technology, Materials, Communication Services, Real Estate, and Utilities. SPXE achieves its investment objective by investing in a portfolio of equity securities that closely mimic the composition of the S&P 500® Index, excluding Energy Sector companies. This exposure allows investors to participate in the broader U.S. stock market while excluding energy-related companies from their portfolio.
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5 min readThe TDSA ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
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4 min readThe SPXE ETF is a specialized investment fund that focuses on global companies in the relevant sectors. This exchange-traded fund offers investors exposure to a diverse range of innovative and cutting-edge companies engaged in advancements in the industry. Discover the potential growth opportunities and risks associated with investing in this dynamic sector through the SPXE ETF.
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