EXCLUSIVE: Tema ETF Tackles Mag 7 Concentration Risk With New S&P 500 Historical Weighting Strategy

Tema ETF, known for its active thematic investment strategies, has unveiled a novel approach to traditional indexing. On Tuesday, in collaboration with S&P Global Inc., the firm introduced the Tema S&P 500 Historical Weight ETF (NYSE:DSPY), a new ETF product designed to tackle unprecedented index concentration risk.

S&P 500 Overconcentration Raises Red Flags, Equal Weight ETF Falls Short As Fix

"Today's S&P 500 concentration is at an all-time high," said Maurits Pot, founder of Tema, in an exclusive interview with Benzinga.

The S&P 500 is increasingly dominated by a handful of tech giants, the so-called Magnificent Seven, which include Microsoft Corp. (NYSE:MSFT), Apple Inc. (NASDAQ:AAPL), NVIDIA Corp. (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META) and Tesla, Inc. (NASDAQ:TSLA).

These seven companies alone make up nearly 30% of the entire index. The ...

https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44593915/exclusive-tema-etf-tackles-mag-7-concentration-risk-with-new-sp-500-historical-weig