Syntax’ Riggs On Stratified Weighting

Rory Riggs, Founder, Syntax met with Julie Cooling, Founder & CEO, RIA Channel to discuss his methodology behind stratified-weighted indices. The idea behind Syntax’s stratified-weighting was inspired by Rigg’s longtime career in healthcare. In the medical field, studies stratify patients’ health risks in order to have a controlled outcome. “I always thought, why can’t we do this in finance?” says Riggs. Riggs set out to create a whole new way of classifying businesses. The proprietary process identifies sets of relating attributes and features. “We care more about what you do, versus how well you do it,” says Riggs on grouping companies by products and client type. The goal is to protect investors from market bubbles, through evenly distributed business risk. In January 2019, Syntax launched its first ETF, SSPY. In addition to the Syntax Stratified Large Cap Index, which is based on the S&P 500, the firm is working towards stratifying all of the major indexes and releasing related ETFs. To learn more on this topic, head to SyntaxIndices.com.