New fund will offer a modern take on the balanced portfolio, helping investors navigate the asset allocation challenge presented by the current market environment
Simplify Asset Management (“Simplify”), an innovative provider of Exchange Traded Funds (“ETFs”) designed to solve today’s most pressing portfolio construction challenges, is today launching its newest ETF, the Simplify Macro Strategy ETF (NYSE Arca: FIG).
FIG is a modern take on the balanced portfolio, designed to be a risk-balanced portfolio of asset classes structured to pursue equity-like returns with lower volatility The Fund will invest in equity, fixed income, and alternative ETFs and derivatives, with a trading strategy that is based on the portfolio management team’s interpretation of large economic events on the national, regional, and global scale.
“We are very pleased to add this fund to our growing lineup, building on our history of launching innovative ETFs that help reduce market volatility and improve investors’ ability to stay the course. With equities and fixed income both experiencing a period of negative returns due to the prevailing market environment, investors are eager to find ways that will help them hedge their downside risk, provide uncorrelated returns, and generate income. We believe the traditional 60/40 portfolio no longer provides the protection and diversification that it has in the past, so we are excited to offer an easily accessible solution to the allocation problem,” said Michael Green, CFA, Portfolio Manager and Chief Strategist with Simplify.
Simplify views FIG as a total portfolio solution for investors due to the Fund’s exposure to a diversified set of risk drivers. By utilizing a combination of equity futures, put options, and call options, FIG aims to provide core equity exposure that is hedged and positively convex. Hedged exposures to credit and volatility risk premia seeks to provide income with limited duration exposure, while managed futures exposure across commodities and rates intend to add absolute return, inflation sensitivity, and equity diversification to the portfolio.
FIG is the latest addition to Simplify’s diverse lineup of unique and highly differentiated ETFs, which provide investors with innovative solutions to navigate today’s challenging market environment.
Earlier this year, Simplify launched the Simplify Managed Futures Strategy ETF (CTA) which seeks absolute returns that have low correlation to the equities market, while ETFs like the Simplify US Equity PLUS Downside Convexity ETF (SPD) and the Simplify Interest Rate Hedge ETF (PFIX) offer exposure to domestic large cap stocks and fixed income, respectively, while utilizing options to hedge against downside risk.
Simplify also offers the Simplify Health Care ETF (PINK), an actively managed ETF focused on leading companies in biotech and healthcare which is also the first ETF committed to donating all of its net profits from managing the fund to Susan G. Komen®, the world’s leading breast cancer organization.
ABOUT SIMPLIFY ASSET MANAGEMENT INC
Simplify Asset Management Inc. is a Registered Investment Adviser founded in 2020 to help advisors tackle the most pressing portfolio challenges with an innovative set of options-based strategies. By accounting for real-world investor needs and market behavior, along with the non-linear power of options, our strategies allow for the tailored portfolio outcomes for which clients are looking. For more information, visit www.simplify.us.
Investors should carefully consider the investment objectives, risks, charges, and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF's prospectus containing this and other important information, please call (855) 772-8488, or visit SimplifyETFs.com. Please read the prospectus carefully before you invest.
An investment in the funds involves risk, including possible loss of principal.
The fund is actively-managed is subject to the risk that the strategy may not produce the intended results. The fund is new and has a limited operating history to evaluate.
The use of derivative instruments and futures contracts Involves risks different from, or possibly greater than, the risks associated with investing directly in securities. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative or futures contract may not correlate perfectly with the underlying asset, rate, or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses.
The Fund invests in ETFs (Exchange-Traded Funds) and entails higher expenses than if invested into the underlying ETF directly. The Fund will invest in fixed income ETFs that invest in debt securities of any credit quality or maturity. Fixed income ETFs may invest in securities with credit quality below investment grade (commonly referred to as “junk bonds”) which can be volatile, hard to price and have less liquidity.
While the option overlay is intended to improve the Fund’s performance, there is no guarantee that it will do so. Utilizing an option overlay strategy involves the risk that as the buyer of a put or call option, the Fund risks losing the entire premium invested in the option if the Fund does not exercise the option. Also, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.
Simplify ETFs are distributed by Foreside Financial Services, LLC.
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