## [# Daily ETF Watch: Twist On Sectors Launches](/sections/daily-etf-watch/daily-etf-watch-twist-sectors-launches)
# Daily ETF Watch: Twist On Sectors Launches
ProShares debuts sectors funds that exclude an individual sector.
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[By Cinthia Murphy](/contributors/cinthia-murphy)
Sep 24, 2015
Edited by: Cinthia Murphy
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ProShares, the ETF provider behind various widely known alternative strategies, is launching today [four S&P 500 ETFs](https://www.proshares.com/media/prospectus/spxe_statutory_prospectus.pdf), but each excludes an individual sector.
The funds are a new twist on sector investing. The idea is that investors might want broad exposure to the S&P 500 but would like to underweight a specific sector they don’t want.
Yes, they could obtain that exposure by owning eight out of nine S&P 500 sectors through individual sector ETFs, but ProShares says a one-stop-solution would minimize fees and commission, as well as rebalancing individual allocations.
The funds are:
- S&P 500 Ex-Energy ETF (SPXE)
- S&P 500 Ex-Financial ETF (SPXN)
- S&P 500 Ex-Health Care ETF (SPXV)
- S&P 500 Ex-Technology ETF (SPXT)
“We've taken a strategy that has been used by institutional investors for a long time; namely, buying a segment of the market or an index, leaving out a sector,” ProShares CEO Michael Sapir told ETF.com. “These products turn sector funds on their head.”
There’s no question sector investing is popular. The SPDR suite of S&P 500 sector ETFs, alone, has more than $85 billion in combined assets.
ProShares’ new funds will each cost 0.27 percent in expense ratio, or $27 per $10,000 invested. That’s roughly two times the cost of an individual SPDR sector ETF.
ProShares has some $26 billion in ETF assets, making it the 9th-largest ETF issuer in the U.S.
**New ETF Issuer Debuts Utility ETF**
Reaves Asset Management is the latest fund manager to enter the ETF space with the launch today of its first actively managed ETF, the [Reaves Utilities ETF (UTES)](https://www.reavesetfs.com/).
UTES, which is managed by Reaves and brought to market via Virtus, invests solely in utilities “without regard to market cap or dividend yield,” according to a press release. The fund is the first actively managed utilities ETF to come to market.
The sector is widely covered by a dozen or so passive funds, none bigger than the [Utilities Select SPDR (XLU | A-89)](https://www.etf.com/XLU), with $6.1 billion in assets.
The company is hoping its active pursuit of relative value—and its 50-plus years of experience in the utility segment—will allow UTES to deliver outperformance relative to other utility funds.
UTES comes to market with a 0.95 percent expense ratio—a price akin to leverage and inverse strategies in the space. XLU costs 0.15 percent.
**FlexShares Adds Two ETFs To Lineup**
FlexShares is bringing to market today [two additions to its ETF lineup](https://www.flexshares.com/).
The first is a fixed-income fund comprising long-dated bonds with a keen focus on credit quality and long-term solvency, the company said. The idea is to offer investors a new way of “optimizing” credit risk.
The other is a large-cap U.S. equity ETF that looks at quality, value and momentum factors to create a portfolio that delivers “dividend income while controlling for market risk,” the company said.
They are:
- FlexShares’ Credit Scored U.S. Long Corporate Bond Index Fund (LKOR)
- FlexShares’ U.S. Quality Large Cap Index Fund (QLC)
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*Contact Cinthia Murphy at* [*cmurphy@etf.com*](mailto:cmurphy@etf.com).
[ Cinthia Murphy ](/contributors/cinthia-murphy)
Cinthia Murphy is head of digital experience, advocating for the user in all that etf.com does. She previously served as managing editor and writer… [View Bio](/contributors/cinthia-murphy)
Related Topics [Equity](http://www.etf.com/topics/equity)
[Large Cap](http://www.etf.com/topics/large-cap)
[U.S.](http://www.etf.com/topics/us)
[Utilities](http://www.etf.com/topics/utilities)