SSPY-ing a More Balanced Future: Cheers to 6 Years!

Time to pop the champagne! Today, we’re celebrating the anniversary of the Stratified Large Cap Index ETF (SSPY), the ETF that’s shaking up how we think about the S&P 500. Over the past year, SSPY has shown it’s not just another fund—it’s leading the charge for innovation, diversification, and balanced sector exposure.
 

Rethinking the S&P 500: The Stratified Difference

Stratified’s sector weighting of the S&P 500, at the time of rebalance, focuses on distributing investments across the 8 different sectors in a way that aims to reduce concentration risk and enhance diversification.

Instead of following traditional market cap weighting, which can lead to heavy reliance on a few large sectors, Stratified’s approach equalizes exposure to various sectors, with the goal of having a more balanced impact on the overall index performance.
 

Balancing the Scale: Sector Neutrality Explained

Stratified Weighting defines sector neutrality in an absolute, not relative, sense. When the fund rebalances, each of the eight primary FIS sectors is assigned an equal weight of 12.5% of the index. This equal weighting process continues within each primary sector’s subsectors. For example, Financials has three subsectors (Banking, Real Estate, and Insurance), so the target weight for each is about 4.17% (12.5% / 3). In total, each primary sector is subdivided into an additional four levels.
 

Seeking to Reduce Risk, Enhance Diversification: The SSPY Advantage

For investors looking to avoid the concentration risk and sector imbalances that can come with a traditional market cap or equal weighting, the Stratified Large Cap Index ETF offers a compelling alternative. Its focus on true sector balance aims for exposure to diverse industries, seeking growth potential for long-term portfolios.

With SSPY, achieving balance in investing is no longer just a goal—it’s a priority.

Celebrating Success: Thank You to Our Visionaries and Investors

As we celebrate the anniversary of SSPY, we want to extend a heartfelt thank you to the visionary investors and dedicated team who made this milestone possible. Your belief in SSPY’s mission to prioritize true balance and enhance diversification has been the driving force behind its success.

Congratulations to everyone who has been part of this journey! Together, we’ve proven that innovation in investing is not just achievable—it’s transformational. Here’s to SSPY’s continued success and to a future filled with growth and opportunity. Cheers!

Looking for a compelling alternative that’s shaking up how we think about the S&P 500? Learn more about the Stratified Large Cap Index ETF (SSPY) at StratifiedFunds.com.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (866) 972-4492 or visit our website at https://stratifiedfunds.com/investor-materials. Read the prospectus or summary prospectus carefully before investing.

The Funds are distributed by Foreside Fund Services, LLC. Exchange Traded Concepts, LLC serves as the investment advisor. Foreside Fund Services, LLC. is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates. 

Investing involves risk, including loss of principal. The Funds are subject to certain other risks, including but not limited to, equity securities risk, large-capitalization risk, index tracking risk, passive strategy/index risk, and market trading risk. Investing involves risk, including possible loss of principal.

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Investors may purchase or sell individual shares on an exchange on which they are listed. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. Eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times. Please see the prospectus for more details.

The Syntax Stratified LargeCap Index™ is the property of Syntax, LLC, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third-party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Syntax, LLC, the parent company of Syntax Advisors, LLC. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”).

The Syntax Stratified LargeCap Index™ is the property of Syntax, LLC, the Fund’s index provider. Syntax®, Stratified®, Stratified Indices®, Stratified Weight™, and FIS™ are trademarks or registered trademarks of Locus LP. Performance of an index is not illustrative of any particular investment. It is not possible to invest directly in an index.

Stratified Weight™ is the weighting methodology by which Syntax diversifies an index’s constituent companies that share “Related Business Risks.” Related Business Risk occurs when two or more companies provide similar products and/or services or share economic relationships such as having common suppliers, customers or competitors. The process of identifying, grouping, and diversifying holdings across Related Business Risk groups within an index is called stratification, and was designed by Syntax to seek to correct for business risk concentrations that regularly occur in capitalization-weighted indices and equal-weighted indices.

The Stratified Hedged Strategy combines the benefits of exposure to a Stratified Weight™ equity portfolio with a rules-based protection program managed by Exchange Traded Concepts to reduce the risk of losses due to market downturns.

Diversification does not ensure a profit or guarantee against a loss.

The S&P 500® Index is a market-capitalization-weighted index of the 500 leading publicly traded companies in the U.S.