The Xtrackers S&P 500 Equal Weight UCITS ETF 2D (XDEU) is an Ireland-domiciled equity ETF managed by DWS under the Xtrackers brand. XDEU is the ticker for the fund's U.S. dollar listing on the London Stock Exchange.

The fund seeks to track the S&P 500 Equal Weight Index, a benchmark comprising the same companies included in the S&P 500 but assigning an equal weight to each constituent rather than weighting companies by market capitalization.

XDEU provides exposure to the U.S. equity market through a passive investment strategy and uses direct physical replication, holding the stocks included in its benchmark. The fund operates under the UCITS framework and follows a distributing income policy.

The S&P 500 Equal Weight Index starts with the S&P 500 universe and assigns a 0.20% weight to each constituent at each rebalancing. As a result, a company's weight in the index is not directly determined by its market capitalization.

Composition / Exposure Profile

XDEU holds companies across different segments of the U.S. economy, including:

• Information technology.

• Industrials.

• Financials.

• Health care.

• Consumer discretionary.

• Communication services.

• Consumer staples.

• Energy.

• Utilities.

• Materials.

Because each constituent receives the same weight at rebalancing, smaller companies within the S&P 500 universe have greater relative representation in XDEU than they would in a market-cap-weighted version of the index. Conversely, the largest companies carry significantly smaller individual weights.

This characteristic can also change the portfolio's sector allocation. Sectors dominated by a small number of mega-cap companies can have less representation than in the traditional S&P 500, while other areas of the market can carry greater weight.

The fund is concentrated in the U.S. equity market. Its performance can be influenced by factors including economic growth, corporate earnings, interest rates, monetary policy, and changes in U.S. equity valuations.

Structure and Costs

The fund and share class have the U.S. dollar as their base currency. On the London Stock Exchange, the USD listing trades under XDEU. The same distributing share class also has listings in other trading currencies, including XDED in GBP on the London Stock Exchange and in EUR on Xetra.

The ETF has an all-in fee of 0.15% per year and uses direct physical replication. It is domiciled in Ireland and operates as part of Xtrackers (IE) plc under the UCITS framework.

XDEU follows a distributing income policy. Dividends received from portfolio companies can therefore be periodically paid to shareholders rather than automatically reinvested within the fund.

History and Evolution of the ETF

The Xtrackers S&P 500 Equal Weight UCITS ETF 2D (XDEU) share class was launched in 2023 to provide exposure to S&P 500 companies through an equal-weight methodology.

Since its launch, the share class has maintained a passive strategy linked to the S&P 500 Equal Weight Index. Its methodology can result in performance that differs from the traditional S&P 500, particularly during periods when the market's largest companies perform significantly differently from the rest of the index.

Throughout its history, XDEU's performance has reflected both broader U.S. equity-market movements and the effects of equal weighting, which distributes exposure across S&P 500 companies differently from a market-cap-weighted approach.

Additional Information

Xtrackers S&P 500 Equal Weight UCITS ETF 2D (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $703.42 million.

Over the past 12 months, Xtrackers S&P 500 Equal Weight UCITS ETF 2D recorded a return of 10.34%, with its price trading between $88.53 and $107.52 during the same period.

The ETF is traded under the ticker XDEU.