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New Year New Sectors

USA

Syntax lists alternative sector midcap ETF

Do you ever think sector definitions are subjective? Do you think you could do as good a job on your own, and have fun in the process? This new ETF certainly does. 

Syntax, a small new ETF provider that specialises in do-it-yourself sector exposures, is listing its second ETF. The Syntax Stratified MidCap ETF (SMDY), which lists this week, will track a modified version of the famous US medium sized companies index, the S&P MidCap 400 Index. 

SMDY will invest in every company in the S&P 400. But will vary the amount of each company it buys according to its own definitions of sectors in the US economy. The sectors that SMDY uses are made by assessing companies’ common business risks, suppliers, functions, and other criteria. 

In the end, the eight sectors SMDY will end up tracking are: consumer, energy, financials, food, healthcare, industrials, information, and information tools. Sectors each get an equal weighting. However, how companies are weighted within these sectors is kept secret. 

Syntax' first ETF, the Syntax Stratified LargeCap ETF (SSPY), has $27 million under management and was listed in January 2019.  


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Bernie Thurston

Bernie Thurston is the founder and CEO of Ultumus, a leading provider of ETF and index data, calculation, and workflow solutions. With over 20 years of experience in financial technology, Bernie has been at the forefront of index and ETF innovation since 2003.

His finance career began at Markit, where as Managing Director for Equities he designed and developed products for index and ETF composition and dividend forecasting from 2003 to 2011. He then founded and led DeltaOne Solutions as Managing Director, building it into a global provider of index and ETF trading data and technology services. The company managed over 100,000 multi-asset class products before being acquired by Markit in 2015.

Following the acquisition, while working for an ETF issuer, Bernie identified fundamental issues in how index and ETF data was represented across the industry. This led him to found Ultumus in 2016, building solutions for ETF primary market operations. Under his leadership, Ultumus has grown into a market leader serving major financial institutions globally, with its ETF Order Management System (OMS) supporting create and redeem workflows worldwide and its PCF platform calculating and distributing portfolio composition files for ETF issuers across every major market.

Bernie sold Ultumus to SIX Group in 2021, where it continues to expand across Europe, North America, and Asia-Pacific. Known for building lasting teams and leveraging cutting-edge technology, Bernie is focused on establishing Ultumus as the backbone of the global index and ETF industry through standardisation and automation.

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