Intech Launches Next-Generation ETFs to Challenge Market Concentration

Mar 13, 2025

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Press Releases

Harnessing volatility in pursuit of better index diversification, Intech ETFs offer seamless market exposure and alpha potential—without added complexity or high fees.

Equity markets are more concentrated than ever. And alternatives haven’t solved the problem—equal-weighted strategies tilt too far toward smaller stocks, and factor investing remains unpredictable. Intech, a leader in systematic equity investing for over 35 years, announces the launch of two new exchange-traded funds (ETFs) designed to push beyond the limitations of conventional indexing.

The Intech S&P Large Cap Diversified Alpha ETF (LGDX) and Intech S&P Small-Mid Cap Diversified Alpha ETF (SMDX)—backed by institutional investor capital—began trading on NYSE Arca on February 28, 2025. These funds aim 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.

"Markets reward those who adapt,” said Ryan Stever, PhD, Chief Investment Officer at Intech. "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.”

The Evolution of Index Investing

Index investing has transformed markets, offering uncomplicated, broad market exposure. But cap-weighted indexes potentially concentrate risk, equal-weighting strategies overemphasize smaller stocks, and factor-based investing remains cyclical. Intech ETFs are designed to overcome these inefficiencies by enhancing index diversification and systematically rebalancing portfolios while maintaining alignment with S&P Dow Jones Indices.

Seamless Market Coverage, Built for Long-Term Investors

Intech ETFs provide comprehensive U.S. equity exposure via the trusted S&P 1500^® framework, minimizing gaps and overlap. With just two funds, investors can efficiently allocate across market caps without the complexity of multi-cap or overlapping benchmarks.

LGDX: A Strategy with a 20-Year Track Record

LGDX is not a new strategy—it carries a live track record dating back to March 1, 2004. The fund’s long-standing investment process has now been converted into an ETF structure, providing investors with the same systematic approach in a more efficient and accessible format.

A Better Fit for Today’s Portfolios

Intech ETFs are built for investors who want diversified exposure without disrupting portfolio alignment. By systematically rebalancing, they aim to maintain broad market exposure while optimizing diversification—all while staying aligned with underlying S&P DJI indices.

"ETFs have reshaped investing, but core allocations need to evolve," said Jose Marques, PhD, Chief Executive Officer at Intech. "With these new funds, we're giving investors a way to stay aligned with trusted S&P DJI indices while optimizing their exposure to market dynamics."

With low tracking error and risk-aware rebalancing, Intech ETFs are designed to complement existing allocations, offering a seamless, efficient core equity solution in today’s concentrated market.

Available Now on NYSE Arca

The Intech S&P Large Cap Diversified Alpha ETF (LGDX) and Intech S&P Small-Mid Cap Diversified Alpha ETF (SMDX) officially launched on NYSE Arca on February 28, 2025. Both ETFs are now available for trading and accessible through major brokerage platforms.

Investors and financial professionals can explore fund details, historical research, and performance insights at IntechETFs.com.

About Intech

For over 35 years, Intech has been at the forefront of systematic investing, pioneering strategies that harness the power of diversification and rebalancing to optimize equity portfolios. With $13 billion in assets under management as of 12/31/2024, our research-driven approach—trusted by pension funds, endowments, and sovereign wealth funds—is now accessible to all investors through Intech ETFs, offering a new way to think about passive investing in a rapidly evolving market. Learn more at intechetfs.com.

Media Contact

Mo Shafroth
RF | Binder Partners
morrison.shafroth@rfbinder.com
720-470-3653

Article Disclosure Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, visit www.intechetfs.com. Read the prospectus or summary prospectus carefully before investing. Investing involves risk, including the possible loss of principal. There is no guarantee that Intech ETFs’ investment strategies will outperform their benchmarks. ETF shares trade on an exchange and may be bought and sold at market price (not NAV). They may trade at a premium or discount to NAV, and investors may incur brokerage commissions and bid-ask spreads when trading. LGDX performance history before 02/28/2025 reflects the results of the predecessor fund, a commingled private investment vehicle that was not registered under the Investment Company Act of 1940. The predecessor fund was managed using the same strategy and objectives as the ETF but was not subject to the same regulatory, fee, or expense structure, which may have affected results. Net asset values (NAVs) of the predecessor fund were used for both NAV and market price performance from inception to listing. Performance reflects the deduction of applicable predecessor fund fees and expenses. For periods after 02/28/2025, ETF performance reflects the deduction of all applicable fund expenses, including management fees, trading costs, and other operating expenses. The S&P 500®, S&P MidCap 400®, S&P SmallCap 600®, S&P 1000®, and S&P Composite 1500® indices are products of S&P Dow Jones Indices LLC (“SPDJI”), licensed for use by Intech. S&P®, S&P 500®, S&P 400®, S&P MidCap 400®, S&P 600®, S&P SmallCap 600®, The 500™, US 500™ and other index names are trademarks of S&P Global, used under license. Intech ETFs are not sponsored or sold by SPDJI, S&P Global, or their affiliates, which make no representation regarding investing. Indices are unmanaged, do not reflect fees, and are not available for direct investment. Equity Market Risk: Common stocks generally carry higher risk than preferred stocks or debt due to lower payment priority. Equity securities in the LGDX and SMDX may experience sudden declines or prolonged downturns. General Market Risk: Increasing global market interconnectivity raises the likelihood that a region’s economic or financial events will impact other markets or issuers. Market Capitalization Risk: SMDX invests in companies across various market capitalizations, each with unique risks. Large-cap stocks may be less volatile but offer slower growth. Small- and mid-cap stocks can experience higher volatility and liquidity risks. High Portfolio Turnover Risk: Frequent trading may increase LGDX and SMDX expenses and result in adverse tax consequences due to higher short-term capital gains. Models and Data Risk: LGDX and SMDX rely on proprietary models and third-party data. Errors or omissions in these inputs may lead to unintended security selections. Market Events Risk: LGDX and SMDX’s investments are subject to economic and market fluctuations, including volatility in investment prices due to factors such as economic growth or recession, interest rate changes, inflation, credit risks, and liquidity conditions. New Fund Risk: As newly launched funds, LGDX and SMDX have no operating history, making it difficult for investors to assess its performance. Foreside Fund Services, LLC distributes Intech ETFs. Intech Investment Management LLC is a registered investment advisor with the U.S. Securities and Exchange Commission. Investment Products: Not FDIC Insured • Not Bank Guaranteed • May Lose Value • Intech does not have any bank affiliates.

Intech Launches Next-Generation ETFs to Challenge Market Concentration