How SPXD Delivers a More Balanced S&P 500 Exposure

• The top 10 S&P 500 Index stocks make up 38.88%¹ of the Index
• The S&P 500 Index Tech sector alone accounts for 34.78%.²
• The “Mag 7” stocks represent 34.54%³ of the S&P 500 Index’s total market capitalization and contribute a substantial 46.44%⁴ of its overall risk.

For investors seeking to address these growing concentration risks, the Xtrackers S&P 500 Diversified Sector Weight ETF (SPXD) provides a practical alternative. SPXD is specifically designed to reduce concentration risk at both the stock and sector levels within the S&P 500 Index.

Utilizing the Syntax FIS sector taxonomy, SPXD follows a rules-based methodology that equally weights its eight sectors, helping to avoid excessive exposure to any single area. Unlike traditional methodologies that assign each company to just one sector, SPXD distributes weights across multiple sectors based on each company’s diverse revenue streams. This multi-dimensional classification offers a more nuanced and accurate reflection of the companies’ true business activities, resulting in a portfolio that is both more balanced and representative of the broader U.S. economy.

SPXD offers investors a more diversified approach than the S&P 500 Index by maintaining a broader effective number of holdings and imposing lower caps on maximum stock weights. This results in a portfolio that is less top-heavy: the 10 largest positions in SPXD collectively represent just 15.41% of the fund’s total assets, compared to the much higher concentration seen in the S&P 500 Index. Additionally, SPXD achieves this diversification with a low expense ratio of only 0.09%, providing investors with a cost-effective and transparent ETF solution.

Learn how the Xtrackers S&P 500 Diversified Sector Weight ETF can deliver broader market exposure and capture the full spectrum of opportunities across the U.S. economy.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.

Glossary:

Magnificent 7: A group of high-performing and influential companies in the U.S. stock market: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and NVIDIA, and Tesla.

S&P 500 Index: An index of U.S large-cap equites that includes 500 leading companies and covers approximately 80% of available market capitalization.

1,2,3,4 Source: S&P Dow Jones Indices 9/30/2025

5: Source: Bloomberg 9/30/2025

Disclosures: 

Risk: Because Exchange Traded Funds (ETFs) trade on a securities exchange, their shares may trade at a premium or discount to their net asset value. ETFs also incur fees and expenses so they may not fully match the performance of the indexes they are designed to track.  Investing involves risk, including the possible loss of principal. Stocks may decline in value.  An investment in the fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. Please read the prospectus for more information.

The S&P 500 Diversified Sector Weight Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and Syntax LLC and has been licensed for use by DBX Advisors LLC.  S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); Functional Information System® are trademarks of Syntax LLC and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by DBX Advisors LLC. The Xtrackers S&P 500 Diversified Sector Weight ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or Syntax LLC and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Diversified Sector Weight Index.

War, terrorism, sanctions, economic uncertainty, trade disputes, public health crises and related geopolitical events have led and, in the future, may lead to significant disruptions in U.S. and world economies and markets, which may lead to increased market volatility and may have significant adverse effects on the fund and its investments.

Carefully consider the fund's investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the fund's prospectus, which may be obtained by calling 1-844-851-4255 or by visiting www.Xtrackers.com. Read the prospectus carefully before investing.

You cannot directly invest into an index. Diversification does not guarantee against a loss.

Xtrackers ETFs ("ETFS") are managed by DBX Advisors LLC (the "Adviser") and distributed by ALPS Distributors, Inc. ("ALPS"). The Adviser is a subsidiary of DWS Group GmbH & Co. KGaA and Is not affiliated with ALPS.

Shares are not individually redeemable, and owners of Shares may acquire those Shares from the Fund, or tender such Shares for redemption to the Fund, in Creation Units only.

The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc., and RREF America L.L.C., which offer advisory services.

Investment products: No bank guarantee  |  Not FDIC insured  |  May lose value

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