ProShares S&P 500 Ex-Energy ETF (SPXE) Covered Calls

The S&P 500 ex-Energy ETF is an exchange-traded fund that tracks the S&P 500 ex-Energy Index. The fund provides exposure to the constituents of the S&P 500 Index while specifically excluding companies classified within the energy sector. This allows investors to maintain a diversified core equity position in large-cap U.S. stocks while eliminating direct sensitivity to oil, gas, and consumable fuel prices, as well as energy equipment and services providers.

You can sell covered calls on ProShares S&P 500 Ex-Energy ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for SPXE (prices last updated Wed 4:16 PM ET):

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S&P 500 ex-Energy ETF (SPXE) is a specialized core equity vehicle designed for investors seeking the broad-market performance of the S&P 500 without the volatility or environmental footprint of the energy sector. By excluding companies involved in the exploration, production, and refining of fossil fuels, the fund provides a "cleaner" version of the flagship U.S. index. This makes it an ideal building block for environmentally conscious portfolios or for investors who already have significant private exposure to energy assets.

The fund’s performance is driven by the remaining ten sectors of the S&P 500, with heavy weightings in information technology, healthcare, and financial services. Because the energy sector traditionally moves in a low correlation to other sectors like technology, removing it can alter the fund’s total risk profile. During periods of rising oil prices, this fund may underperform the standard S&P 500, but it typically offers a smoother ride during energy market downturns or transitions toward a low-carbon economy.

Portfolio Strategy and Exclusionary Screening

The investment strategy is straightforward and rules-based. The fund starts with the universe of the S&P 500 and removes every constituent categorized under the Global Industry Classification Standard (GICS) Energy Sector. The remaining stocks are then market-cap weighted, ensuring that the largest American enterprises—such as Apple, Microsoft, and Amazon—remain the primary drivers of returns. This methodology ensures that the fund remains a highly liquid and representative proxy for the "non-energy" domestic economy.

Competitive Landscape

The fund competes with traditional broad-market indices and other ESG-focused (Environmental, Social, and Governance) investment products. Key competitors and related optionable securities include:

1. SPDR S&P 500 ETF Trust: The primary benchmark that investors use to compare the performance of this "ex-sector" strategy.
2. Energy Select Sector SPDR Fund: The fund representing the exact sector that SPXE excludes; often used in "pair trades" against this ETF.
3. iShares MSCI USA ESG Advanced ETF: A major competitor that uses broader sustainability criteria to filter the U.S. stock market.
4. Invesco QQQ Trust: A technology-heavy competitor that naturally has very low energy exposure, appealing to a similar investor demographic.
5. iShares Core S&P 500 ETF: A low-cost alternative for broad-market exposure that includes the energy sector.

Strategic Outlook and Market Utility

The strategic utility of the fund is closely tied to the global energy transition and the increasing institutional demand for fossil-fuel-free investment options. As more pension funds and endowments commit to divestment, products like this provide a simple, transparent, and low-cost way to implement those mandates without sacrificing exposure to the rest of the U.S. economy. Innovation in the "ex-sector" space continues to focus on providing granular control over portfolio tilts for sophisticated asset allocators.

Management focuses on maintaining low tracking error relative to the ex-energy index and high tax efficiency for its shareholders. While the fund is often used as a long-term core holding, it also serves as a tactical tool for traders who believe that the energy sector faces structural headwinds or regulatory challenges. By offering a standardized way to "short" the importance of oil and gas within a diversified portfolio, the fund remains a vital instrument for modern, thematic investing.

Want more examples? SPXC Covered Calls | SPXL Covered Calls