Rethinking65 profiled Intech’s recent ETF launch as a response to one of the most pressing issues in passive investing today: concentration in mega-cap stocks. The article outlines how Intech is bringing its 35+ years of systematic equity experience to a retail audience via two new ETFs—LGDX and SMDX—that aim to harness volatility in pursuit of better index diversification and consistent alpha potential.
The article outlines how Intech distinguishes its approach from others, which may introduce different types of risk:
- Equal-weighted strategies as being overly tilted toward smaller, riskier stocks
- Factor investing as cyclical and hard to time
- Cap-weighted indexing as prone to top-heaviness
Instead, Intech offers:
- LGDX (Large Cap Diversified Alpha ETF), aligned with the S&P 500®
- SMDX (Small-Mid Cap Diversified Alpha ETF), built on the S&P 1000®
Both ETFs prioritize volatility- and correlation-aware construction and are systematically rebalanced to maintain enhanced diversification and capture trading opportunities.
“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.”
