"I'll take the S&P, but hold the energy."
A new set of exchange-traded funds offered by ProShares allows investors to get exposure to the entire S&P 500, save for one or another given sector. Specifically, the company now offers ETFs tracking the S&P 500 ex-energy (trading under the ticker symbol SPXE), ex-financials (SPXN), ex-health care (SPXV) and ex-technology (SPXT).
In a Thursday interview with CNBC's "Trading Nation," ProShares' head of investment strategy, Simeon Hyman, highlighted two anticipated uses for the ETFs: diversification and tactical decision-making.
Hyman provides the example of an investor who already has high exposure to a given sector—such as an executive compensated in a company's stock, or an inheritor who has received a large number of shares—and does not want to take on excess exposure.
"Previously you'd have to maybe call up a trust company or find someone to run a custom strategy for you to avoid that sector, and here it's just very straightforward: Buy an ETF. The sector's out, it's redistributed across the other names on a market-cap-weighted basis, you don't have to worry about it," Hyman said.
Second, the ETFs are designed for those who believe a given sector, such as energy, is set to underperform the rest of the market. "If you have that conviction, this is a very straightforward and easy way to effect that view," he said.