Syntax Advisors launches Syntax Stratified US Total Market Hedged ETF
Syntax Advisors has launched the Syntax Stratified US Total Market Hedged ETF (SHUS) on NYSE Arca. SHUS launched with over USD43 million in AUM and it marks the fifth and latest ETF in Syntax’s expanded family of Stratified Weight funds.
Syntax offers an innovative alternative to cap weighted and equal weighted index products through a full suite of Stratified Weighted ETFs covering US LargeCap, MidCap, SmallCap, and US Total Market exposure. Stratified Weighting is designed to maintain diversified business risk exposure and capture a fuller range of market opportunities for investors.
Syntax’s investment approach, (Stratification) was developed over a 10-year period, and is based on a significant re-evaluation of cap weighted indexing. In recent years, this traditional approach has resulted in the over-concentration in many portfolios of a small group of large cap companies (ie, FANGS) in a similar industry (ie, technology).
Syntax takes the world's most widely used index benchmarks and reweights them to reflect diversified business risk across numerous industries. Instead of concentrating in the largest companies and the most popular sectors, Syntax’s patented process determines the common risks companies and industries face, then equally divides these stocks within carefully defined segments. This process seeks to provide investors with more balanced exposure across available business opportunities while still engaged in indexing.
SHUS utilises the Stratified Defined Risk Strategy, developed in conjunction with Swan Global Investments. In addition to seeking Stratified Weight exposure, SHUS utilises put options to hedge equity exposure with the goal of achieving risk-managed growth.