SPXT: Ex-Tech S&P 500 ETF Outperforming This Year Has Imperfections, A Hold

Vasily Zyryanov2.21K FollowersFollow5ShareSavePlay(13min)CommentsSummaryProShares S&P 500 Ex-Technology ETF is a passively managed ETF offering exposure to the S&P 500 without the GICS IT sector. With financials as the top allocation, SPXT is lighter in growth than IVV, with larger exposure to value and low volatility factors. Since September 2018, SPXT has underperformed IVV by almost 43%, delivering softer risk-adjusted returns as well. Even though SPXT has been doing a bit better than IVV this year, I believe it lacks a compelling risk/reward profile to justify a Buy rating. I do not see critical vulnerabilities that would justify a bearish stance either. deliormanli/iStock via Getty Images Today, I would like to present arguments why the ProShares S&P 500 Ex-Technology ETF (SPXT) does not possess a risk/reward profile appealing enough to buy into it. In other words, I do not anticipate it toThis article was written byVasily Zyryanov2.21K FollowersFollowVasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.