# S&P 500 Concentration Risk

> S&P 500 ETFs spread risk by reducing tech dominance.
- Title: S&P 500 Concentration Risk · Kiplinger | Shortify
- Summary: S&P 500 ETFs spread risk by reducing tech dominance. The Tema S&P 500 Historical Weight ETF (DSPY) and Invesco S&P 500 Revenue ETF (RWL) lower tech…
- Keywords: s&p 500, spym, dspy, rwls, tech concentration, etf, revenue weighting, market cap weighting, 500, Concentration, Risk, Kiplinger
- Source: Kiplinger — https://kiplinger.com/investing/etfs/the-s-p-is-more-concentrated-than-you-think-these-etfs-spread-your-risk
- Published: 2026-10-09T10:00:00+00:00
- Read time: 1 min
- Topics: s&p 500, spym, dspy, rwls, tech concentration, etf, revenue weighting, market cap weighting
## S&P 500 Concentration Risk
The S&P 500 carries considerable concentration risk as of October 7 with tech stocks accounting for 40.2% of SPYM.
## Tech Dominance in SPYM
Alphabet, Meta Platforms, and Netflix are classified as communication services stocks while Amazon and Tesla are consumer discretionary stocks.
## Mega-Cap Concentration
SPYM's 10 largest positions accounted for 38.8% of the fund with all Magnificent 7 stocks represented.
## Equal Weighting Strategy
The Invesco S&P 500 Equal Weight ETF (RSP) gives each S&P 500 constituent approximately the same starting weight at quarterly rebalances.
## Historical Weight ETF
The Tema S&P 500 Historical Weight ETF Strategy (DSPY) uses historical average S&P 500 constituent weights to moderate unusually large concentrations.
## DSPY's Portfolio Shift
DSPY has 7.8% less exposure to tech and 2.9% less to communication services compared with the S&P 500, with financial stocks receiving a 2.7% overweight.
## Mega-Cap Weight Reduction
Mega-cap S&P stocks like Nvidia, Apple, and Microsoft have roughly half their conventional S&P 500 allocations in DSPY.
## Revenue Weighting ETF
The Invesco S&P 500 Revenue ETF (RWL) reweights companies according to revenue with a 5% individual-stock cap and quarterly rebalancing.
## RWL's Portfolio Shift
RWL has a 23.2% underweight to tech and 11.2% overweight to healthcare compared with the S&P 500.
## Walmart's Revenue Impact
Walmart generates enormous sales from retail operations, becoming more prominent when ranked by revenue rather than market valuation.
## DSPY Performance
For the one-year period through August 31, DSPY returned 21.8% at net asset value compared with 20.3% for SPYM.
## RWL Performance
For the one-year period through August 31, RWL returned 25.3% at net asset value compared with 20.3% for SPYM.
## Key takeaway

The Tema S&P 500 Historical Weight ETF (DSPY) and Invesco S&P 500 Revenue ETF (RWL) lower tech concentration in the S&P 500 while maintaining strong returns.