New Syntax ETF Has More Granular Approach

New Syntax ETF Has More Granular Approach

The fund covers the same market as an existing Syntax ETF, but invests mainly in individual stocks rather than other ETFs.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Today, Syntax Advisors rolled out an ETF that ostensibly covers the same market as one of its existing ETFs, but takes a slightly different approach.  

The new Syntax Stratified Total Market II ETF (SYII) and the existing Syntax Stratified U.S. Total Market ETF (SYUS) both seek to achieve capital growth that meets or exceeds the performance of the S&P Composite 1500 Index.  

SYII comes with an expense ratio of 0.35% and lists on the NYSE Arca, just like SYUS.  

The main difference between the two funds is that SYUS invests primarily in other Syntax ETFs that implement the firm’s proprietary stratified weighting approach, while SYII can invest in individual equities and other ETFs, allowing for greater granularity. Both are actively managed.  

SYUS, with just under $7 million in assets under management, holds the Syntax Stratified LargeCap ETF (SSPY), the Syntax Stratified MidCap ETF (SMDY) and the Syntax Stratified SmallCap ETF (SSLY). However, the newly launched SYII has a portfolio of nearly 300 stocks and four ETFs.  

Syntax’s stratified weighting approach groups stocks by their common business risks and distributes weights within a strategy based on those risks.  

At launch, SYII’s largest three securities included the iShares Biotechnology ETF (IBB), at 10.95%; the Vanguard Information Technology ETF (VGT), at 4.91%; and Apple Inc., at 1.55%.  

 

Contact Heather Bell at [email protected] 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.