XEWE: A Simple Guide to the Xtrackers S&P 500 Equal Weight Scored & Screened UCITS ETF
Investing in exchange-traded funds (ETFs) has become very popular. ETFs allow people to buy a group of stocks in one product, making investing easier and often cheaper. One interesting ETF in Europe is called XEWE. It is part of the Xtrackers fund family from DWS Group.
XEWE is not just another S&P 500 ETF. Instead of giving more weight to the biggest companies, it gives equal weight to every stock in the index. It also adds ESG filters, which means it removes companies that do not meet certain environmental, social, or governance standards.
This article explains XEWE in a simple way — what it is, how it works, its costs, performance, and who it might be good for.
1. What is XEWE?
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Full Name: Xtrackers S&P 500 Equal Weight Scored & Screened UCITS ETF
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Ticker Symbols:
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XZEW (unhedged version)
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XEWE (EUR-hedged version)
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ISIN Codes:
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IE0004MFRED4 (1C Accumulating class)
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IE000IDLWOL4 (2C EUR-Hedged class)
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Domicile: Ireland (UCITS-compliant fund)
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Provider: Xtrackers (DWS Group)
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Main Exchanges: Xetra, Borsa Italiana, London Stock Exchange, SIX Swiss Exchange
2. How XEWE Works
XEWE tries to copy the performance of the S&P 500 Equal Weight Scored & Screened Index.
Here’s how it is different from a normal S&P 500 ETF:
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Equal Weighting: Each stock in the fund has the same weight. Apple and Microsoft are not bigger than smaller firms like Ralph Lauren.
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ESG Screening: Companies that fail certain sustainability standards are removed.
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Physical Replication: The fund actually owns the stocks in the index.
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Currency Options: Investors can choose the version that is EUR-hedged (XEWE) or unhedged (XZEW).
3. Launch Dates and Costs
| Share Class | Launch Date | Annual Fee (TER) |
|---|---|---|
| 1C (Unhedged, Accumulating) | December 6, 2022 | 0.17% |
| 2C (EUR-Hedged) | May 17, 2023 | 0.22% |
These fees are low compared to many actively managed funds, and are reasonable for an equal-weight fund.
4. Assets Under Management
| Share Class | Assets Managed | Currency |
|---|---|---|
| 1C (Unhedged) | ~€1.2 billion | EUR |
| 2C (Hedged) | ~€468 million | EUR |
The fund has grown quickly in size since launch, which shows that investors are interested.
5. Holdings and Portfolio
XEWE does not hold all 500 companies from the S&P 500 because of the ESG filters. It usually holds around 280–310 stocks.
Examples of Top Holdings
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Tapestry
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CVS Health
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Gilead Sciences
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Ralph Lauren
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AMD
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Western Digital
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Invesco
Each of these stocks makes up less than 0.5% of the fund, because of equal weighting.
Read also: Lessinvest.com Worth
Sector Allocation
| Sector | % of Fund |
|---|---|
| Technology | 14–15% |
| Industrials | 13–14% |
| Health Care | 13% |
| Financials | 13% |
| Consumer Discretionary | ~11% |
| Communication Services | ~9% |
| Energy | ~7% |
| Others | Balance |
This means the fund is well spread across industries, with no single sector dominating too much.
6. Geographic Exposure
Even though the S&P 500 is made up of U.S. companies, the fund sometimes shows small exposure outside the U.S. due to company structures.
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United States: ~92%
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Ireland: ~3%
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United Kingdom: ~1–2%
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Other countries: ~3–4%
7. Performance and Risk
Performance
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1-Year Return (2024): +19%
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Since Inception (1C class): +13.9%
Risk Numbers
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1-Year Volatility: ~18–19%
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Maximum Drawdown: -22%
Equal-weight funds can move up and down more than regular S&P 500 funds, because they include smaller companies. But in some years, they may perform better, especially when mid-size companies do well.
8. Advantages and Disadvantages
Advantages
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Diversified: Reduces the dominance of mega-cap stocks like Apple or Microsoft.
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ESG Focus: Fits with sustainable investing goals.
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Hedged Option: Protects European investors from USD/EUR swings.
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Low Cost: Cheaper than many active funds.
Disadvantages
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More Volatile: Prices can move up and down faster.
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Different from S&P 500: May not match the performance of the traditional index.
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Frequent Rebalancing: Equal weighting requires regular adjustments.
9. Who Should Invest?
XEWE may be a good fit for:
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Investors who want ESG screening in their U.S. stock investments.
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Those who dislike concentration risk in mega-cap tech stocks.
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European investors who prefer currency-hedged options.
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Long-term investors who already own a normal S&P 500 ETF and want to add variety.
10. Available Resources
Investors can find more details from:
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Factsheets (monthly performance and holdings updates)
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Prospectus (legal and structural details)
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Key Information Documents (KIDs) (summary info)
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Annual and Semi-Annual Reports
These can be found on the Xtrackers website or exchange websites like Xetra and Borsa Italiana.
Conclusion
XEWE is an ETF that gives investors a different way to invest in U.S. large companies. By giving equal weight to stocks and adding ESG screens, it reduces reliance on a few mega-cap firms and supports sustainable investing.
It has grown quickly, with over €1.5 billion in assets across its classes, and charges low fees. However, it comes with higher volatility and may not always perform like the traditional S&P 500.
For investors who want diversification, ESG focus, and protection against currency risk (via the EUR-hedged version), XEWE can be a smart addition to their portfolios.
