SMDY Profile
The Syntax Stratified MidCap Fund aims to provide investment results that closely match the performance of the Syntax Stratified MidCap Index. This index, developed by Syntax LLC, a subsidiary of the fund’s investment adviser, represents a stratified-weight variant of the widely recognized S&P MidCap 400 Index. The fund will invest at least 95% of its total assets in the securities included in this index, ensuring a high degree of alignment with its performance.
The Syntax Stratified MidCap Index mirrors the S&P MidCap 400 Index in terms of its constituent securities, which include a diverse array of mid-cap companies across various sectors of the U.S. economy. However, the stratified-weight approach modifies the traditional market capitalization weighting of the S&P MidCap 400 Index. This method aims to enhance diversification by allocating weights to securities based on a broader set of characteristics beyond just market capitalization, such as factors related to industry sectors or geographical regions.
By employing a stratified weighting methodology, the Syntax Stratified MidCap Fund seeks to mitigate concentration risk and reduce potential volatility inherent in market-cap-weighted indexes. This approach allows for a more balanced exposure to mid-cap companies, potentially improving the risk-return profile of the investment. The fund is designed to capture the performance of mid-sized U.S. companies with an emphasis on maintaining broad-based representation across various economic sectors.
Investors in the Syntax Stratified MidCap Fund benefit from exposure to a diversified portfolio of mid-cap stocks, which are typically characterized by their growth potential and higher risk compared to large-cap equities. The fund's strategy aims to deliver returns that reflect the performance of the Syntax Stratified MidCap Index while providing a diversified investment option within the mid-cap segment of the U.S. stock market.
|
