Intech, a firm specializing in systematic equity investing for over 35 years, has launched two exchange-traded funds designed to overcome the limitations of conventional indexing by “turning volatility into opportunity.”
According to the firm, equity markets are too highly concentrated, alternatives are not a solution because equal-weighted strategies are biased toward smaller stocks, and factor investing is unpredictable and cyclical.
The firm’s two new offerings — Intech S&P Large Cap Diversified Alpha ETF (LGDX) and Intech S&P Small-Mid Cap Diversified Alpha ETF (SMDX) — began trading on NYSE Arca on Feb. 28. They are intended to “restore balance to core equity investing, seeking to enhance diversification, mitigate concentration risk, and unlock uncorrelated alpha while staying aligned with trusted S&P Dow Jones Indices,” according to a news release from Intech.
“Markets reward those who adapt,” Ryan Stever, Chief Investment Officer at Intech, said in the release. “Our ETFs go beyond conventional investing by turning volatility into opportunity. It’s about capturing the best of both worlds — efficiency and transparency, with a design that actively aims to mitigate unintended risks.”
Intech stated that its ETFs enhance index diversification and systematically rebalance portfolios while staying aligned with S&P Dow Jones Indices.
The two funds offer comprehensive U.S. equity exposure through the S&P 1500 framework, which the firm says minimizes gaps and overlap. With just two funds, investors can efficiently allocate across market caps without the complexity of multi-cap or overlapping benchmarks.
LGDX is based on a longstanding investment process that has been converted into an ETF structure, offering the same systematic approach in a more efficient and accessible format, the firm said.
