Syntax Stratified MidCap ETF (SMDY US) – Portfolio Construction Methodology

The underlying Syntax Stratified MidCap Index provides mid-cap equity exposure by reweighting all S&P MidCap 400 constituents using Syntax’s stratified business-risk framework rather than market cap. The universe is constrained to securities that satisfy the S&P MidCap 400’s committee-based eligibility, including ongoing requirements for public float, financial viability and trading liquidity typical of U.S. mid-cap companies, which generally sit between the S&P SmallCap 600 and S&P 500 capitalization bands. Within this universe, Syntax groups each company’s revenue into granular business-risk segments, aggregates those into diversified business-risk groups and then assigns each group an equal target weight. Individual stock weights equal the sum of group weights multiplied by each company’s revenue share in those groups, which limits concentration in large issuers and crowded business lines. The index is fully invested, float-adjusted, rebalanced quarterly to restore group parity, and updated for corporate actions as they occur.

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