SHUS | Syntax Stratified U.S. Total Market Hedged ETF

SHUS ISSUER

The Syntax Stratified U.S. Total Market ETF (SHUS) is managed by Syntax, LLC and offers a unique approach to U.S. equity market exposure. Syntax employs the Stratified Weight™ methodology to diversify its indices by grouping and distributing the weight of constituent companies that share related business risks. This approach aims to provide a more balanced and diversified exposure to all business opportunities in the U.S. market, mitigating the risk of concentration in large-cap or industry-specific stocks. SHUS employs a Defined Risk Strategy (DRS) that involves options strategies, including long-term S&P 500 Index put options to protect against large losses and shorter-term put and call options on equity indices to enhance returns. The ETF is actively managed and seeks to achieve its investment objective through investments in Syntax Stratified Weight ETFs or U.S. equity securities, along with index options for risk management and additional return generation.

SHUS DIVIDEND

While the primary objective of the Syntax Stratified US Total Market ETF (SHUS) is to provide stratified exposure to a broad range of US stocks, it also offers a dividend distribution component. Dividends for SHUS are influenced by the dividend policies and performances of the constituent companies within the Syntax Underlying Funds. Typically, these distributions occur on a quarterly basis. The ETF's investment strategy involves a defined risk strategy (DRS) that uses put and call options to protect against losses and potentially enhance returns. Investors can expect dividend eligibility based on the performance of the underlying index and the companies within it, making SHUS a potential choice for those seeking a combination of capital appreciation and dividend income.

SHUS TRACKING

Tracking the Syntax U.S. Total Market Index is the primary objective of the SHUS Tracking ETF. This ETF aims to achieve this goal by investing in Syntax Stratified Weight ETFs, U.S. equity securities utilizing the Stratified Weight methodology, and index options for risk management purposes. The strategy used by SHUS Tracking is called the Stratified Defined Risk Strategy, which includes the use of put options hedging, shorter-term put and call options on equity indices, and various longer-term spread option strategies. The ETF seeks to provide diversified exposure to a broad range of U.S. market capitalization, addressing related business risk concentrations that can occur in traditional market-weighted indices.

SHUS CORRELATION

The SHUS ETF's Stratified Weight™ methodology, developed by Syntax, LLC, is designed to address and mitigate the concentration risks that typically arise in traditional index-based investments, such as those that follow capitalization-weighted or equal-weighted strategies. By focusing on Related Business Risks, the Stratified Weight approach aims to diversify investments across companies that have similar products, services, or economic relationships, such as common suppliers, customers, or competitors. This method of stratification helps in reducing the undue influence that certain sectors or companies might have on the portfolio due to their size or market representation, which is a common issue in capitalization-weighted indices where larger companies dominate, or in equal-weighted indices where sectors with more constituents may be overrepresented. The underlying premise is that by diversifying exposure across different business risk groups rather than concentrating it in the largest companies or the most represented industries, the SHUS ETF can potentially offer a more balanced and less volatile investment experience. This diversified approach is expected to alter the fund's correlations with the broader market and within its own holdings, potentially leading to a more resilient investment portfolio during various market conditions. By reducing the risk of significant exposure to a single economic downturn or sector-specific decline, the Stratified Weight methodology aims to provide a smoother return profile over time. Furthermore, the SHUS ETF's Defined Risk Strategy (DRS), managed by Swan Global Investments, LLC, which includes the use of put options for hedging, adds another layer of risk management. This strategy aims to protect the portfolio against significant downturns in the equity markets, further affecting the ETF's correlation with the broader market. By employing put options, the DRS seeks to provide a safety net during market downturns, potentially reducing the fund's downside risk and volatility.

SHUS SECTOR

The Syntax Stratified U.S. Total Market ETF (SHUS) provides investors with diversified exposure to a broad range of stocks that represent approximately 90% of the total U.S. market capitalization. SHUS utilizes the Stratified Weight methodology, grouping and distributing the weight of constituent companies based on related business risks to create a more balanced portfolio. This approach aims to mitigate concentration in the largest companies or industries often seen in traditional market-cap-weighted indices, offering a unique way to access the entire spectrum of U.S. market opportunities. Additionally, SHUS employs a Defined Risk Strategy that involves options to protect against large losses and enhance returns, making it a versatile option for investors seeking a stratified approach to U.S. equities.

SHUS EXPOSURE

The exposure characteristic of the Syntax Stratified U.S. ETF (SHUS) is designed to provide investors with diversified exposure to approximately 90% of the total U.S. market capitalization. This ETF aims to achieve this by employing Syntax's Stratified Weight methodology, which groups and distributes the weight of its constituent companies based on related business risks. The fund's holdings span various sectors, including Consumer Products &Services, Energy, Financials, Food, Industrials, Information, Information Tools, and Healthcare, allowing investors to access a wide range of opportunities within the U.S. market. To explore SHUS's exposure in greater detail, you can use ETF Insider's web app, which offers comprehensive data and visualizations for all U.S. ETFs, helping you analyze overlaps, correlations, and more.