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Here's an interesting one they talked about ETF IQ this week, the Tema S&P 500 Historical Weight ETF (DSPY). What that means is allocates to current constituents based on its "average monthly weighting since December 29, 1989."
The effect of that process is DSPY is less concentrated than the S&P 500. The Invesco Equal Weight S&P 500 ETF (RSP) came up in the conversation, the Tema CEO quipped, do you really want Campbell Soup to have the same weighting in your portfolio as Nvidia? I thought that was funny.
Here's a comparison between DSPY and one of the S&P 500 ETFs.
There's clearly differentiation there.
Not surprisingly, DSPY has lagged, it has less of the group of stocks that have been leading (carrying?) the broad market. I am surprised that DSPY didn't do slightly better during the April panic. SPXT is the S&P 500 excluding technology.
With less exposure to the Mag 7 and the rest of Big Tech, I would assume DSPY to be less volatile but only slightly so from testfol.io.
This is an interesting idea so the question is will underweighting the Mag 7 and the rest of Big Tech work if there is some sort of upheaval in the AI space.
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