Introducing a New Index Strategy from one of the most Innovative minds on Wall Street
Is Your Index Fund
Really Diversified?
Most investors think theirs are.
But cap-weighted indexes may become heavily slanted, like towards tech these days. As stocks go up, they likely become a bigger piece of the portfolio. Stocks go down, they likely become less of the portfolio.
The Difference is
weighting
The patented Stratified process
determines the common risks companies
face and then equally divides stocks with
carefully-defined segments.
you get the stocks you want &
The balance YOU NEED
The Markets Are Reverting Back to Rational Investing
It’s well known that the S&P 500, the most popular index for passive strategies, is dominated by just a few tech juggernauts like Alphabet, Amazon, and Facebook, all of which have dropped significantly. But a deeper dive by research and data science firm Syntax shows that technology risk still makes up 42 percent of the benchmark.
The Difference is Weighting
In the Cap Weighting methodology, stocks are allocated solely due to relative company size. The larger the market cap of a company, the greater its relative allocation in the index. This results in random sector concentration problems that change over time.
Rory Riggs and the Evolution of Indexing
An early believer in index investing, Rory Riggs also thought that there had to be a more efficient way to passively capture market returns than either conventional cap or equal weighting and set out to uncover it.