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This paper from Syntax Data shows that after more than a decade of large-cap dominance, many advisor portfolios have become increasingly concentrated in a handful of mega-cap names. Small-cap stocks offer a potential counterbalance, as they are often priced at a meaningful valuation discount to large caps and provide exposure to a more domestically oriented segment of the U.S. equity market. For advisors looking to diversify away from technology-heavy market leadership, small caps are an increasingly relevant place to look. Each factor answers a different question, and the three are deliberately complementary. Value favors companies trading at reasonable prices relative to book value, sales, and earnings. Quality emphasizes stable, profitable companies with lower leverage and consistent earnings. Price momentum leans the index toward names the market is already rewarding, helping the strategy participate in small-cap rallies rather than relying only on companies that look inexpensive. Originally published by Syntax Data on June 24, 2026. Read the full article here. When financial advisors first encounter direct indexing, the most common question is also the most practical: how do I build something that looks like the broad market, but does it better? Quality and growth are the natural starting point. Quality companies (those with stable earnings, low leverage, and high profitability) have historically produced more consistent returns through the cycle. Growth companies, with strong earnings trajectories and reinvestment opportunities, have driven a disproportionate share of long-term equity returns. Combining the two creates an index that is recognizable to clients (large- cap, US, well-known names) while pursuing the kind of fundamental edge that justifies a custom portfolio over a passive ETF. This case study from Syntax Data walks through how an advisor can use Syntax Direct to construct a Quality + Growth tilted large-cap index, examines the resulting portfolio, and presents the backtest performance against the broad large-cap benchmark. Originally published by Syntax Data on May 11, 2026. Read the full case study here. Syntax Data, a financial data and technology provider offering data-optimized index solutions, announced a partnership with MSCI Inc. (NYSE: MSCI) to offer a range of MSCI indexes on the Syntax Direct platform: a forward-looking index development tool that revolutionizes the rapidly growing direct-to-index investment process. As part of this strategic collaboration, MSCI will help Syntax expand into the independent RIA channel by helping financial advisers gain access to an expanded set of ADR index universes while also providing distribution support for the wealth management community. American Depositary Receipts (ADRs) allow advisers to gain exposure to a broad range of international equities using indexes designed to deliver diversification benefits using U.S.-listed securities – without leaving U.S. exchanges. Originally posted on Business Wire on March 31, 2026. Read the full article here. Syntax Data, a financial data and technology provider offering data-optimized index solutions, today announced that Bruce Traan has joined the firm as President and COO of the Index Division. In this capacity, Traan will oversee operations, data policy, and business development for Syntax’s index business. He will also serve as an executive member of the Syntax Data LLC management committee, where his responsibilities will include overall business development and operations. Traan brings a fresh dynamic to Syntax’s index business, where his broad experience in multi-asset, international markets, and data distribution will augment and enhance Syntax’s world-class development and production teams. Syntax currently provides custom index services and solutions to a wide range of well-recognized global financial institutions. The company recently launched Syntax Direct, a forward-looking index development tool that revolutionizes the rapidly growing direct-to-index investment process. Originally published on Business Wire on November 3, 2025. Read full article here. Artificial intelligence (AI) has rapidly emerged as a compelling financial opportunity. As AI technologies advance at an unprecedented pace, proponents are excited by its potential to transform virtually every industry, from healthcare to logistics to insurance to manufacturing. The demand for AI technology from all corners of the economy has spurred massive growth in the many firms developing hardware, software, and services to support this work, with governments and corporations alike pouring billions into AI research and infrastructure. Correspondingly, AI has become an attractive strategic theme in investment portfolios, making it a focal point for those seeking high-growth, future-oriented opportunities. In this case study highlighting how an advisor can use Syntax Direct to create a custom index solution for a client looking to invest in the artificial intelligence space. Syntax demonstrates the steps taken to create the custom Artificial Intelligence Index and illustrate the information that is readily available in Syntax Direct to support the sample case study. In addition to enabling the creation of personalized index solutions, Syntax Direct supports the reporting and regulatory needs of advisors by providing immediate access to both factsheets and index rulebooks, compliance-ready documents that detail the key methodologies used to create and backtest each index. Originally published on SyntaxData.com on May 22, 2025. Read full article here. |
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