Tema Launches the S&P 500 Historical Weight ETF Strategy (DSPY), First S&P 500 Concentration Innovation Since 2003

NEW YORK--(BUSINESS WIRE)-- 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.

About Tema ETFs

Tema ETFs is an institutional active ETF investment manager founded in 2023 focused on delivering innovative and durable ETF portfolio solutions. For more information, visit www.temaetfs.com.

1	Bloomberg as of January 31, 2025.

Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus or summary prospectus, which may be obtained by visiting www.temaetfs.com. Read the prospectus carefully before investing.

Investors in the Fund should be willing to accept a high degree of volatility in the price of the Fund's shares and the possibility of significant losses. An investment in the Fund involves a substantial degree of risk. Therefore, you should carefully consider the following risks before investing in the Fund.

Investing involves risk including possible loss of principal. There is no guarantee the adviser’s investment strategy will be successful.

Large-Capitalization Risk. Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. The securities of large-capitalization companies may also be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large-capitalization companies may also be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes.

Calculation Methodology Risk. The Adviser relies on various sources of information to "weight-adjust" the S&P 500, including information that may be based on assumptions and estimates. Neither the Fund nor the Adviser can offer assurances that the calculation methodology or sources of information will provide accurate "weight-adjusted" S&P 500. Errors in the S&P 500 data, S&P 500 computations or the construction of the S&P 500 in accordance with its methodology, and errors in the process of "weight- adjusting" the S&P 500 may occur from time to time and may not be identified and corrected by the Index Provider or the Adviser for a period of time or at all, which may have an adverse impact on the Fund and its shareholders.

"Standard & Poor’s," "S&P", and "S&P 500" are trademarks of Standard & Poor’s Financial Services, LLC and have been licensed for use by Tema ETFs LLC ("Tema"). Tema S&P 500® Historical Weight ETF Strategy is not sponsored, endorsed, sold, or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in Tema S&P 500® Historical Weight ETF Strategy.

Tema ETFs LLC serves as the investment adviser to Tema S&P 500 Historical Weight ETF Strategy (the “Fund”), and NEOS Investments, LLC serves as a sub adviser to the Fund. The Fund is distributed by Foreside Fund Services LLC, which is not affiliated with Tema ETFs LLC nor NEOS Investments, LLC. Check the background of Foreside on FINRA’s BrokerCheck. For inquiries: info@temaetfs.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250401952675/en/

Alexander Fribourg, VP Product & Strategy

Email: af@temaetfs.com

Source: Tema