SPXT owns the S&P 500 excluding information technology, preserving other sectors; it can be used alone to eliminate tech exposure or combined with an S&P 500 or active managers to reduce, though not eliminate, tech exposure. SPXT and TDV offer materially better diversification than many other funds.

The first one is SPXT, which is an ETF that allows investors to own the S&P 500 while excluding the information technology sector as a whole.

Let's talk about SPXT for a moment. At the basic level, what exactly is the ProShares S&P 500X technology ETF? And why might an investor want to own the S&P 500 without the information technology sector?

The good news is it's easy to explain. you own the S&P 500 without the tech sector. And the piece that is the tech sector is just spread like peanut butter over everything else.

So you're not trying to guess anything else. It's just extracting the tech sector from the S&P 500, hence the a ticker SPXT.

So what's the use case here? Listen, if you don't like my investment policy statement story and you really have extreme conviction, this is the surgical answer that will give you the S&P 500 without the tech sector and it preserves all the rest of the diversification elements that are there.

You're still going to have your energy piece, you're going to have your staples piece, all those pieces are still going to be there. But a more I wouldn't say prudent but more in line with the investment policy statement kind of story is you're likely to combine SPXT with other equity instruments in your portfolio.

Whether it be just 50/50 plain vanilla S&P 500. So now instead of 40% you have 20. That would be extremely prudent.

Or whether it's an active manager who you know in your portfolio has plenty of exposure maybe even more than 40%. combining it with other equity strategies in your portfolio to reduce but likely not eliminate the technology exposure.

Those are the quintessential people that buy the book actually should have spxt no technology in their equity holdings because they got so much exposure through their uh through their livelihood.

SPXT may appeal to someone who believes they already have enough technology exposure and they want the rest of the S&P 500 without that specific part of that sector. SPXT delivers the S&P without the tech sector.

So they're going to be people with so much uh conviction with regards to the bearish view that it is a perfect tool to completely eliminate the tech sector. But as we were discussing, it also works very well as a combination with other equity investments, whether they're concentrated single stock positions or active managers or just the S&P 500 that's super concentrated.

So it can be used to give you the S&P without it absolutely or in conjunction with other uh with other vehicles to reduce the exposure.

I think it's pretty fair to say that SPXT and TDV both offer materially better opportunities for diversifying your equity holdings than a lot of other I'll I'll say a lot of other stuff out there.

There really is a ton of overlap and you got to look you got to look under the hood because you can have five or 10 ETFs and they might all be looking almost exactly the same but SPXT and TDV will not will likely not look like the other funds that you might own or be thinking of.