Strive to Invest Smarter: SHUS Seeks Balance, Growth, and Volatility Hedge
In today’s dynamic markets, investors can face a constant balancing act — seeking growth opportunities while managing the risks of volatility and downturns. The Stratified LargeCap Hedged ETF (SHUS) offers a strategy tailored to these challenges. Think sector-smart, risk-savvy.
What Sets SHUS Apart?
SHUS offers investors a dual-layered approach to large-cap equity exposure by focusing on sector balance and diversification. Unlike traditional market-cap-weighted ETFs, SHUS employs a stratified weighting methodology, that works toward no single sector dominating the portfolio. Additionally, it utilizes an options spread to manage downside risk. This approach aims to reduce concentration risk and provide a more consistent risk-return profile, particularly during periods of market volatility.
The hedged portion of SHUS is designed to help investors manage downside risk while maintaining exposure to growth opportunities in large-cap equities. This component uses a systematic hedging strategy to reduce the impact of market declines, managing a layer of protection during periods of heightened volatility or economic uncertainty.
How SHUS Works for You
- Seeking Downside Protection*
The hedging mechanism aims to limit losses during market downturns, helping to preserve capital*. By potentially softening the blow of significant market declines, SHUS may allow investors to stay invested through challenging periods.
- Seeking Smoother Returns*
The inclusion of hedges reduces the overall volatility of the ETF*, resulting in a potentially steadier performance trajectory over time. This can be appealing to risk-averse investors or those nearing retirement, who prioritize resilience in their portfolios.
- Behavioral Support
During sharp market corrections, many investors are tempted to exit the market, locking in losses or realizing capital gains and potentially missing out on recoveries. The hedged portion develops a safety net, making it easier for investors to stick to their long-term investment plans.
- Complement to Sector Balancing
By combining a balanced sector-weighting strategy with hedging, SHUS mitigates concentration risk and market volatility simultaneously. This dual-layered approach offers a unique blend of diversification and risk mitigation.
The Behavioral Advantage: Supporting Long-Term Goals
Overall, the hedged portion of SHUS adds an extra layer of resilience*, helping investors weather market storms while remaining positioned for eventual recoveries. This makes SHUS an effective strategy for those seeking growth while managing uncertain market conditions.
Take Control of Your Financial Future
With SHUS ETF's dual-layered approach, you can get exposure to high-performing large-cap companies combined with a built-in mechanism to help shield against the unexpected. In an era where market volatility is the norm, SHUS may be a suitable choice for your portfolio's Large Cap Equity Exposure.
Take control of your financial future with SHUS, the ETF that blends balance, diversification, and manages downside protection—for a suitable way to stay invested, no matter what the market brings.
Have questions? Contact us today!
* There can be no guarantee the Fund will meet its investment objectives.
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. There can be no guarantee the Fund will meet its investment objectives.
SSPY Risks: The Fund is 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.
SHUS Risks: The Fund is actively managed using a proprietary process, and there can be no guarantee that the Fund's investment strategies will be successful. The Fund may invest in Underlying Funds or Securities that are managed with a passive investment strategy, attempting to track the performance of an unmanaged index of securities. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. Maintaining investments in securities regardless of their individual performance or market conditions could negatively affect the Fund's return. The Fund is subject to certain other risks, including but not limited to, equity securities risk, large-, mid-, and small-capitalization risk, and market trading risk. Investing in securities of small and mid-sized companies may involve greater volatility than investing in larger and more established companies. Certain investments may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Purchased put options may expire worthless and may have imperfect correlation to the value of the Fund’s sector based investments. Written call and put options may limit the Fund’s participation in equity market gains and may amplify losses in market declines. The Fund’s losses are potentially large in a written put or call transaction. If unhedged, written calls expose the Fund to potentially unlimited losses. The Fund invests in derivatives. Derivatives are financial instruments that derive their performance from an underlying reference asset, such as an index. The return on a derivative instrument may not correlate with the return of its underlying reference asset. Derivatives can be volatile and may be less liquid than other securities.
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.
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