Guarding Against Tech Creep In Portfolios

Syntax Data73 FollowersFollow5ShareSavePlay(7min)Comment(1)SummaryAs Growth has outperformed Value by 49% over the last decade, the S&P 500 has evolved. What was once a balanced core benchmark now carries a pronounced growth bias, dominated by a handful of tech giants. At the same time, we’ve seen considerable interest on the Syntax Direct platform for yield-focused strategies.Given this market shift, we examined how the growth bias in the S&P 500 has - or has not - influenced three large dividend-focused ETFs: Vanguard Dividend Appreciation (VIG), Schwab U.S. Dividend Equity (SCHD), and Vanguard High Dividend Yield (VYM).Ultimately, guarding against “tech creep” requires more than looking at a label like core or dividend that is attached to an investment. It requires a clear understanding of the embedded underlying exposures. ChayTee/iStock via Getty Images There is a lot to like about the 15.5% annualized return of the S&P 500 (SPY) over the past decade. Still, its story has been a tale of two styles: the S&P 500 Growth Index returned 17.34% perThis article was written bySyntax Data73 FollowersFollowSyntax LLC is a financial data and technology company that codifies business models into a relational system we call Affinity Data™. Syntax operates through three segments: Affinity Data™, Syntax Direct™, and Syntax Indices™. Using its patented FIS® technology inspired by systems sciences, the Affinity Data™ segment offers the most comprehensive, granular, and accurate product line revenue data available on the market.

The Syntax Direct™ segment then uses this abundance of data to facilitate the near instantaneous creation and ongoing management of boundless direct indexing solutions and rules-based equity portfolios through a fully automated platform.

The Syntax Indices™ segment offers customized and proprietary indices, including core global benchmarks and micro- and macro-thematic, smart beta, defined outcome, and target volatility indices. These indices are foundational for a range of financial products, such as ETFs, UITs, and structured products.