Index Sync is a new feature developed to power our newest exchange fund benchmarked to the S&P 500 and to help overcome key limitations in traditional exchange fund construction. Historically, exchange funds diversify concentrated stock positions by pooling contributions from multiple investors, a process that can get more complex as the benchmark broadens.
With Index Sync, we rebalance the fund’s holdings using an ETF that mirrors the benchmark. This allows us to gain exposure to the index’s constituents, even if they aren’t contributed directly to the fund. Because ETFs can adjust to shifting index weights tax-efficiently, this mechanism enables the exchange fund to track its benchmark more precisely.
Index Sync is available exclusively in our Select Fund series, open to Qualified Purchasers (those with 5 million or more in investable assets), covering the S&P 500, S&P 500 Growth, and Nasdaq-100 benchmarks.