“An investment in the S&P 500 that excludes a particular sector gives you the flexibility to tailor your core U.S. equity exposure,” according to ProShares. “It can replace a traditional S&P 500 fund, allowing you to underweight or even eliminate a sector in your portfolio.”

Of course, when energy stocks swoon, as was the case last year, SPXE is likely to outperform not only that sector, but the S&P 500 as well. Over the past 12 months, the S&P 500 is higher by just over 3%, but SPXE’s gain during that period is 15.72%.

Prior to Thursday, the energy sector had been rebounding this year, but SPXE was up 9.55% year-to-date, an advantage of 42 basis points over the S&P 500.

For more on core investing strategies, please visit our Core ETF Channel.

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