Tema S&P 500 Historical Weight ETF (DSPY) Launches to Address Concentration Risk

How DSPY ETF Works

DSPY applies a historical perspective to a widely followed index. Instead of relying on market capitalization, it assigns each stock a weight based on its average rank in the S&P 500 over more than three decades. The result is a portfolio shaped by long-term patterns, rather than short-term market dominance.

The fund is rebalanced quarterly to reflect updates to the index and invests at least 80% of its assets in current S&P 500 constituents. With a 0.18% expense ratio and the tax efficiency of an ETF wrapper, DSPY provides exposure to the U.S. equity market through a differentiated lens.

Here are the top 10 holdings of DSPY as of March 31, 2025.

Why Investors Might Consider DSPY

DSPY offers exposure to the S&P 500 while addressing historically high concentration levels. Its weighting method reduces dependence on a handful of mega-cap stocks by reflecting a broader historical distribution.

It can be used to diversify traditional S&P 500 holdings or as an alternative to equal-weight strategies with potentially lower tracking error.

DSPY may also complement large-cap growth allocations or serve as a cost-effective replacement for higher-fee active strategies, using a methodology grounded in 35 years of index data.

About Tema ETFs

Tema ETFs specializes in innovative ETF solutions designed to improve diversification, risk management, and investment precision. With a focus on unique market segments and strategic index methodologies, Tema aims to empower investors with durable, data-driven investment opportunities.

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.