DWS launches S&P 500 sector diversification ETF on NASDAQ

DWS launched the Xtrackers S&P 500 Diversified Sector Weight ETF (NASDAQ: SPXD) on July 24, 2025, expanding its exchange-traded fund offerings. The ETF tracks the S&P 500 Diversified Sector Weight Index, which reweights S&P 500 companies to reduce concentration risk and address sector imbalances.

The fund uses a revenue-based weighting methodology that equally weights eight primary sectors, then applies hierarchical weighting through sub-sectors down to business activities. Each company's weight is based on the proportion of revenue it generates within specific business activities. The index and ETF rebalance quarterly.

The ETF carries a net expense ratio of 0.09%. According to the company, the fund seeks to provide greater balance across sectors and improved stock-level diversification compared to market capitalization and equal sector-weighted approaches.

The index utilizes the Functional Information System framework developed by Syntax LLC, working with S&P Dow Jones Indices. Companies are weighted based on actual business revenue rather than traditional sector classifications.

This launch brings Xtrackers' U.S. product suite to 41 funds with approximately $27 billion in assets under management as of June 30, 2025. Globally, Xtrackers consists of over 170 funds with approximately €250 billion in assets under management as of July 16, 2025.

DWS Group manages €1.01 trillion in total assets as of March 31, 2025, and employs approximately 4,700 people worldwide. The company describes itself as a European asset manager with global reach, offering investment solutions across active, passive and alternative asset management.

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