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

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Tema ETFs has launched the S&P 500 Historical Weight ETF Strategy (DSPY) on NYSE Arca, marking the first S&P 500 concentration innovation since 2003. The ETF aims to address high concentration risks in the S&P 500, where the top 10 holdings currently represent ~39% of the index.

DSPY adjusts company weightings to match the S&P 500's average concentration levels since 1989, with the top 10 holdings seeking to represent 22% of total exposure. The ETF features an expense ratio of 0.18% and uses a rules-based approach that reduces both S&P 500 concentration and S&P 500 Equal Weight tracking error.

The strategy assigns weights based on historical average rankings rather than individual companies, considering the index's changing constituents over time. The DSPY Total Return (DSPYTR) Index, calculated by S&P Global Inc., serves as the ETF's benchmark.

Tema ETFs ha lanciato la Strategia ETF Storico di Peso S&P 500 (DSPY) su NYSE Arca, segnando la prima innovazione di concentrazione S&P 500 dal 2003. L'ETF mira a affrontare i rischi di alta concentrazione nell'S&P 500, dove i primi 10 titoli attualmente rappresentano circa il 39% dell'indice.

DSPY regola i pesi delle aziende per corrispondere ai livelli medi di concentrazione dell'S&P 500 dal 1989, con i primi 10 titoli che cercano di rappresentare il 22% dell'esposizione totale. L'ETF presenta un rapporto di spesa dello 0,18% e utilizza un approccio basato su regole che riduce sia la concentrazione dell'S&P 500 che l'errore di tracciamento dell'S&P 500 Equal Weight.

La strategia assegna pesi basati su classifiche medie storiche piuttosto che su singole aziende, considerando i cambiamenti nei componenti dell'indice nel tempo. L'Indice di Rendimento Totale DSPY (DSPYTR), calcolato da S&P Global Inc., funge da benchmark per l'ETF.

Tema ETFs ha lanzado la Estrategia ETF de Peso Histórico S&P 500 (DSPY) en NYSE Arca, marcando la primera innovación de concentración del S&P 500 desde 2003. El ETF tiene como objetivo abordar los altos riesgos de concentración en el S&P 500, donde las 10 principales participaciones representan actualmente aproximadamente el 39% del índice.

DSPY ajusta los pesos de las empresas para que coincidan con los niveles promedio de concentración del S&P 500 desde 1989, buscando que las 10 principales participaciones representen el 22% de la exposición total. El ETF cuenta con una relación de gastos del 0,18% y utiliza un enfoque basado en reglas que reduce tanto la concentración del S&P 500 como el error de seguimiento del S&P 500 Equal Weight.

La estrategia asigna pesos basados en clasificaciones promedio históricas en lugar de en empresas individuales, considerando los cambios en los componentes del índice a lo largo del tiempo. El Índice de Rendimiento Total DSPY (DSPYTR), calculado por S&P Global Inc., sirve como referencia para el ETF.

Tema ETFs는 NYSE Arca에서 S&P 500 역사적 비중 ETF 전략(DSPY)를 출시하여 2003년 이후 처음으로 S&P 500 집중 혁신을 기록했습니다. 이 ETF는 현재 상위 10개 보유 자산이 지수의 약 39%를 차지하는 S&P 500의 높은 집중 위험을 해결하는 것을 목표로 합니다.

DSPY는 1989년 이후 S&P 500의 평균 집중 수준에 맞추기 위해 기업 비중을 조정하며, 상위 10개 보유 자산이 총 노출의 22%를 차지하도록 합니다. 이 ETF는 0.18%의 비용 비율을 특징으로 하며, S&P 500 집중도와 S&P 500 균등 가중치 추적 오류를 줄이는 규칙 기반 접근 방식을 사용합니다.

이 전략은 개별 기업이 아닌 역사적 평균 순위를 기준으로 비중을 할당하며, 시간에 따른 지수 구성 요소의 변화를 고려합니다. S&P Global Inc.에서 계산한 DSPY 총 수익 지수(DSPYTR)는 ETF의 벤치마크 역할을 합니다.

Tema ETFs a lancé la Stratégie ETF de Poids Historique S&P 500 (DSPY) sur NYSE Arca, marquant la première innovation de concentration S&P 500 depuis 2003. L'ETF vise à traiter les risques de forte concentration dans le S&P 500, où les 10 principales participations représentent actuellement environ 39% de l'indice.

DSPY ajuste les poids des entreprises pour correspondre aux niveaux de concentration moyens du S&P 500 depuis 1989, les 10 principales participations cherchant à représenter 22% de l'exposition totale. L'ETF présente un ratio de dépenses de 0,18% et utilise une approche basée sur des règles qui réduit à la fois la concentration du S&P 500 et l'erreur de suivi du S&P 500 Equal Weight.

La stratégie attribue des poids basés sur des classements historiques moyens plutôt que sur des entreprises individuelles, en tenant compte des changements dans les composants de l'indice au fil du temps. L'Indice de Rendement Total DSPY (DSPYTR), calculé par S&P Global Inc., sert de référence pour l'ETF.

Tema ETFs hat die S&P 500 Historische Gewichtung ETF Strategie (DSPY) an der NYSE Arca gestartet, was die erste Konzentrationsinnovation des S&P 500 seit 2003 markiert. Das ETF zielt darauf ab, hohe Konzentrationsrisiken im S&P 500 zu adressieren, wo die 10 größten Positionen derzeit etwa 39% des Index ausmachen.

DSPY passt die Unternehmensgewichte an, um den durchschnittlichen Konzentrationslevels des S&P 500 seit 1989 zu entsprechen, wobei die 10 größten Positionen 22% der Gesamtexposition repräsentieren sollen. Das ETF weist eine Kostenquote von 0,18% auf und verwendet einen regelbasierten Ansatz, der sowohl die Konzentration des S&P 500 als auch den Tracking-Fehler des S&P 500 Equal Weight reduziert.

Die Strategie weist Gewichte basierend auf historischen Durchschnittsrankings zu, anstatt auf einzelnen Unternehmen, und berücksichtigt die sich über die Zeit ändernden Bestandteile des Index. Der DSPY Total Return (DSPYTR) Index, berechnet von S&P Global Inc., dient als Benchmark für das ETF.

Positive
  • First innovation in S&P 500 concentration management since 2003
  • Competitive expense ratio of 0.18%
  • Addresses market concentration risk through historical weighting methodology
  • Partnership with S&P Global Inc. for index calculation
Negative
  • New product with no established track record
  • May underperform in markets where high concentration benefits returns

Insights

Tema's launch of the S&P 500 Historical Weight ETF Strategy (DSPY) represents a significant innovation in the index fund space, addressing a critical issue that's been building for years. With the S&P 500's concentration reaching 50-year highs—where the top 10 holdings now comprise 39% of the index—DSPY offers a timely middle-ground solution between the standard cap-weighted S&P 500 and its equal-weighted counterpart.

The key differentiator is DSPY's methodology that reweights companies to match the S&P 500's average concentration since 1989, targeting top 10 holdings at 22% exposure versus the current 39% in the standard index. This potentially reduces concentration risk without the dramatic sector reallocations that come with equal-weighting (where top 10 holdings represent just 2%).

With a competitive 0.18% expense ratio, DSPY positions itself as a core holding alternative for investors concerned about mega-cap dominance but unwilling to fully commit to equal-weighting. This launch also signals Tema's strategic expansion into core ETF solutions, indicating more products may follow.

As the first meaningful innovation addressing S&P 500 concentration in over two decades, DSPY arrives at a pivotal moment when "Magnificent Seven" concentration has become a significant portfolio risk factor for passive investors.

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.

Alexander Fribourg, VP Product & Strategy

Email: af@temaetfs.com

Source: Tema

FAQ

What is the expense ratio of the new DSPY ETF?

The DSPY ETF has an expense ratio of 0.18%.

How does DSPY differ from the traditional S&P 500 in terms of top holdings concentration?

DSPY targets 22% concentration in top 10 holdings versus 39% in the traditional S&P 500.

When did the DSPY ETF launch on NYSE Arca?

DSPY launched on NYSE Arca on April 1, 2025.

How does DSPY determine its historical weights?

DSPY uses average monthly weights of each S&P 500 index ranking (1 to 500) since December 29, 1989.

What problem does the DSPY ETF aim to solve?

DSPY addresses high concentration risk in the S&P 500, which has reached 50-year highs, and reduces tracking error versus equal-weight strategies.
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