SSPY returned 3.00% in Q1 2023 versus the S&P 500 Index that returned 7.50%. SSPY’s Stratified Weight seeks to diversify across sectors and sub-sectors to prevent one sector, industry, or company from becoming overconcentrated in the portfolio.
Syntax Advisors Insights
The Syntax Stratified Large Cap (SSPY) ETF outperforms the S&P 500 Equal Weight Index, with a challenging quarter against the tech-heavy S&P 500 Index. Apple and Microsoft’s large concentration in the S&P 500 Index drive its outperformance and pose a challenge to investors looking for diversified exposure to the U.S. equity market.
The Syntax Stratified Large Cap (SSPY) ETF continues to outperform the S&P 500 Index. Market volatility rewarded diversified ETFs in 2022.
SSPY outperforms S&P 500 in another difficult quarter. Stratified weight methodology seeks to create value by diversifying across sectors and sub-sectors to avoid over-exposure to companies with similar business risks.
SSPY outperforms S&P 500 in difficult quarter. Stratified diversification creates value by avoiding overweighting poorly performing growth segments (which are overweighed in the S&P 500) and relatively higher exposure to the strongly performing Energy and value stocks (which are underrepresented in the S&P 500).
In designing clinical trials, researchers use stratification to show that a new drug is effective across a particular group of people that are suffering from a disease or ailment.
The dominance of market-cap weighted indexing means that the carnage in technology isn’t done pummeling allocators.