Tema S&P 500 Historical Weight ETF

Profile

The Tema S&P 500 Historical Weight ETF is an exchange-traded fund designed to represent U.S. large-cap equities by tracking a proprietary index that recalibrates the familiar S&P 500 Index. Unlike traditional S&P 500 products, which are weighted by current market capitalization, this ETF adjusts its constituent company weights to reflect the average concentration levels the S&P 500 has maintained since 1989. This approach seeks to address the increasing concentration of recent years, in which a handful of mega-cap companies dominate the index, by allocating exposure more in line with historical norms. The fund’s unique rules-based methodology assigns weights to companies based on their current rank, mapped to the long-term average weight for that rank across more than three decades, rather than to the specific company itself. As a result, the top 10 holdings in the fund typically represent around 22% of the portfolio, in contrast to the roughly 39% concentration seen in today’s S&P 500 and the roughly 2% seen in equal-weighted versions. By reducing concentration risk and the tracking error relative to both the cap-weighted and equal-weighted S&P 500 indices, the Tema S&P 500 Historical Weight ETF plays a distinctive role within the broad-based U.S. equities segment, offering an alternative for investors seeking diversified exposure to the U.S. stock market.