Newcomer’s ETF Reweights S&P 500

January 07, 2019

Friday saw the arrival of another ETF newcomer when Syntax ETF Trust launched a fund tracking a reweighted version of the S&P 500 Index. The Syntax Stratified LargeCap ETF (SSPY) takes the popular index’s components and weights them according to their shared business risks.

SSPY comes with an expense ratio of 0.30% and lists on the NYSE Arca exchange.

The fund’s underlying index uses a stratified weighting approach, which groups companies according to shared business risks, meaning companies whose earnings are affected by the same fundamental drivers are classified together.

That translates into eight nontraditional sectors: consumer, energy, financials, food, health care, industrials, information and information tools. Companies, according to the prospectus, are “equally allocated” across those sectors, with rebalancings of the index occurring on a quarterly basis.

SSPY is one of the first ETFs to launch in 2019.

Contact Heather Bell at [email protected]

 

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