Stratified LargeCap Index ETF

Frequently Asked Questions About SSPY

What does SSPY invest in?

SSPYs index aims to provide equal exposure to companies that share related business risks, using a proprietary stratified weighting methodology. The fund manager sorts S&P 500 companies into groups based on their underlying business functions and relationships such as common suppliers, customers, competitors, and products. When two or more companies earnings are affected by these fundamental drivers, they are grouped, and their weight is redistributed across the other components. The objective is to provide a more unbiased return on the large-cap space than market-cap-weighted funds. Rebalanced quarterly, the index includes 500 components from all eight industry sectors. On September 27, 2024, the fund acquired all assets and liabilities of the Syntax Stratified ETF suite, LargeCap, MidCap, SmallCap, Total Market II, and U.S. Total Market ETF (SYUS), which had about $50.1 million combined AUM.

What is the expense ratio of SSPY?

Stratified LargeCap Index ETF (SSPY) charges an expense ratio of 0.45%. This is the annual fee deducted from fund assets to cover management and operations.

What is SSPY's distribution yield?

SSPY's trailing-twelve-month yield is 1.19%, calculated from the sum of distributions over the past year divided by the current price.

How does SSPY's covered-call strategy work?

SSPY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is SSPY?

Stratified LargeCap Index ETF (SSPY) manages $131.3M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is SSPY actively managed or an index fund?

SSPY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.