ProShares S&P 500 Ex-Technology ETF (SPXT) Covered Calls

ProShares S&P 500 Ex-Technology ETF is an exchange-traded fund that tracks the performance of the S&P 500 Ex-Information Technology Index. The fund provides exposure to large-cap U.S. equities within the S&P 500 while specifically excluding companies classified in the information technology sector. This strategy allows investors to maintain broad market exposure to diversified industries such as financials, healthcare, and industrials without the concentration risk of the tech sector.

You can sell covered calls on ProShares S&P 500 Ex-Technology 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 SPXT (prices last updated Fri 4:16 PM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

Core Business and Products

ProShares S&P 500 Ex-Technology ETF (SPXT) is a specialized investment vehicle designed for investors seeking broad-based exposure to the U.S. large-cap equity market while intentionally avoiding the technology sector. The fund tracks the S&P 500 Ex-Information Technology Index, which includes all constituents of the standard S&S 500 Index except for those assigned to the Information Technology Global Industry Classification Standard (GICS) sector.

By removing technology companies, the ETF provides a diversified portfolio that emphasizes other major segments of the American economy. The core holdings are typically distributed across sectors such as financials, healthcare, consumer discretionary, and industrials. This structure offers a tactical tool for investors who believe the technology sector is overvalued or who already have significant tech exposure through other investments and wish to balance their overall portfolio risk.

Competitive Landscape

The competitive environment for SPXT consists of other sector-specific and "ex-sector" ETFs, as well as broad market index funds. While most investors flock to tech-heavy indices, SPXT appeals to a niche audience looking for "old economy" stability or defensive positioning against tech volatility. The fund is highly liquid and trades on major exchanges, allowing for efficient entry and exit for institutional and retail traders alike.

Key peers and investment alternatives in the large-cap and sector-filtered ETF space include:

1. SPDR S&P 500 ETF Trust: The standard benchmark for U.S. large-cap equities, which includes the technology sector.
2. Invesco QQQ Trust: A primary alternative that represents the opposite strategy, focusing heavily on technology and non-financial leaders.
3. Health Care Select Sector SPDR Fund: A sector-specific peer that represents one of the largest overweights in the SPXT portfolio.
4. Financial Select Sector SPDR Fund: Another major sector component that gains higher relative weighting within an ex-tech framework.
5. ProShares S&P 500 Ex-Health Care ETF: A sibling fund that applies a similar exclusion strategy to a different primary sector.

Strategic Outlook and Innovation

The strategic value of this fund lies in its role as a portfolio construction tool. As the broader market indices become increasingly concentrated in a handful of mega-cap technology names, the demand for "ex-sector" vehicles has grown. The fund provides an automated, low-cost way to achieve diversification that would otherwise require complex manual trading of hundreds of individual stocks.

Innovation for this product is centered on its index-tracking efficiency and the maintenance of low tracking error. By utilizing a passive management approach, the fund ensures that its performance closely mirrors the underlying index without the higher costs associated with active management. This commitment to transparency and cost-effectiveness makes it a foundational tool for tactical asset allocation and long-term risk management in a modern investment portfolio.

Want more examples? SPXS Covered Calls | SPXU Covered Calls