Syntax Indices, a parent of Syntax Advisors, seeks to provide a more balanced exposure to commonly used benchmarks. “We all know there are inherent problems with cap-weighting,” says Cuocolo on the lack of diversification. Syntax’s method of stratification, originated in medical trials as a way to define population sets, and prevent skewed results.
In January of 2019, Syntax launched their first ETF, SSPY. The Syntax Stratified LargeCap ETF, aims to re-weight S&P 500 stocks based on business risk.