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Xtrackers Launches S&P 500 Diversified Sector Weight ETF: A Multi-Dimensional Approach to Sector Diversification in U.S. Large-Cap Equities
7/24/2025
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NEW YORK, NY – DWS, a leading European asset manager with global reach, today announced the launch of the Xtrackers S&P 500 Diversified Sector Weight ETF (NASDAQ: SPXD) (the “Fund”), expanding its suite of innovative, rules-based ETFs designed to address modern portfolio construction requirements. The ETF is available for trading on NASDAQ starting July 24, 2025. The Fund seeks investment results that correspond generally to the performance of the S&P 500 Diversified Sector Weight Index, which is designed to track the performance of the S&P 500 Index reweighted to mitigate concentration risk and address sector imbalances. This reweighting approach is intended to provide a return more representative of all the business opportunities inherent to the S&P 500, rather than a return tied principally to the business opportunities represented by the S&P 500’s largest constituent companies. The Index’s reweighting approach utilizes the Functional Information System (FIS ®) framework developed by Syntax LLC (“Syntax”), a financial data and technology company that works directly with S&P Dow Jones Indices.
“Investors are seeking allocation alternatives that avoid the concentration risks that we’re seeing in many large-cap benchmarks,” said Salvador Gomez, Head of Xtrackers Sales Americas. “With SPXD, we’reoffering a balanced exposure to the S&P 500 by rethinking sector classification and weighting — grounded in real business activity, not just labels.”
“At S&P Dow Jones Indices, we are excited that DWS has selected the S&P 500 Diversified Sector Weight Index as the underlying benchmark for its new exchange-traded fund,” said Rupert Watts, Head of Factors and Dividends at S&P Dow Jones Indices. “This index deploys Syntax's FIS taxonomy in an incredibly novel way, reweighting companies in the S&P 500 to enhance sector diversification and reduce individual stock concentration. We are proud of the innovation this index brings to the Factors and Dividends landscape and the access DWS is providing to such a high-quality index methodology.”
Redefining Sector Exposure Through Revenue-Based Weighting
The S&P 500 Diversified Sector Weight Index equally weights eight primary FIS sectors (such as Information, Energy, and Food), then applies a hierarchical weighting methodology through deeper layers, from sub-sectors down to business activities. Each company’s weight in the Index is ultimately based on the proportion of revenue it generates within business activities. Given this, the ETF seeks to provide a greater balance across sectors and improved stock-level diversification relative to both market cap and equal sector-weighted approaches. The Index and the ETF will rebalance on a quarterly basis.
“The Index doesn’t just diversify by broad sectors or equally by number of stocks — it seeks to diversify by economic reality,” said Henry Wu, Head of Xtrackers Products US. “In a world where companies generate revenue across multiple business activities, SPXD addresses that complexity in a rule-based approach. With the volatility witnessed in the US equity market, it’s a timely innovation for investors seeking economic diversification in equity exposure.”
The Fund is competitively priced with net/gross expense ratios of 0.09%.
Xtrackers U.S., Global Product Suite, and AuM Update
Globally, Xtrackers by DWS is a large and established provider of high-quality exchange traded funds (ETFs) and exchange traded commodities (ETCs). Providing efficient “passive” exposure to diversified indices or to single commodities, Xtrackers ETFs and ETCs provide a comprehensive set of dependable investment tools for effective portfolio allocation.
Xtrackers U.S., Global Product Suite, and AuM Update
The addition of the S&P 500 Diversified Sector Weight ETF expands the Xtrackers U.S. product suite to 41 funds, and as of June 30, 2025, approximately USD 27 billion in assets under management. Xtrackers globally now consists of over 170 UCITS ETFs as of July 16, 2025, with approximately EUR 250 billion in assets under management.