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Tema ETFs (“Tema”) announces the launch of the Tema S&P 500 Historical Weight ETF Strategy (“DSPY”), now trading on NYSE Arca. DSPY seeks to reflect the S&P 500 but adjusts company weightings to match the S&P 500's average concentration level since 1989. S&P 500 concentration levels have reached 50-year highs amidst a prolonged stock-market bull run led by the Magnificent Seven. DSPY is the first innovation addressing S&P 500 concentration since the S&P 500 Equal Weight ETF launched in 2003. DSPY has an expense ratio of 0.18% and marks the launch of Tema’s core ETF solutions vertical, with plans to expand the core suite later this year.
“The DSPY ETF is the first innovation on S&P 500 concentration in 22 years, launched in association with S&P Global Inc.,” said Maurits Pot, Chief Executive Officer and Founder of Tema. “DSPY addresses two growing risks following a strong decade for the S&P 500: Firstly, the top 10 holdings in the S&P 500 are ~39% of the index1, the highest concentration in over 50 years. Secondly, the overlap between S&P 500 and S&P 500 Equal Weight is down to under 50%1, increasing the tracking error to a multi-decade high as concentration reduces this overlap. DSPY provides an innovative rules-based solution by reducing both S&P 500 concentration and S&P 500 Equal Weight tracking error.”
The Tema S&P 500 Historical Weight ETF Strategy (DSPY) seeks to reflect the S&P 500 but adjusts company weightings to match the S&P 500's average concentration levels since 1989. In this context, “historical weight” is defined as the average monthly weight of each S&P 500 index ranking (1 to 500) since December 29, 1989. DSPY takes the average weight of each index ranking (1 to 500) rather than the weight of each individual company, given the index’s constituents and rankings may change over time. This historical average weight is then assigned to the company currently holding that rank within the S&P 500.
The top 10 holdings in DSPY will seek to represent 22% of the total exposure, whereas the top 10 constituents in the S&P 500 represent 39% of the index1, and 2% in the S&P 500 Equal Weight.
Learn More about DSPY
The Tema S&P 500 Historical Weight ETF Strategy (DSPY) launched on the NYSE Arca on April 1, 2025. DSPY is now available for trading and accessible through major brokerage platforms. The DSPY Total Return (DSPYTR) Index is the benchmark for the Tema S&P 500 Historical Weight ETF. The DSPYTR Index is designed to track the historical weighted version of the S&P 500. The DSPYTR Index is calculated by S&P Global, Inc.
Investors and financial professionals can explore fund details, research, and performance insights at www.TemaETFs.com/DSPY.
