NEW YORK–(BUSINESS WIRE)–Simplify Asset Management (“Simplify”)an innovative provider of exchange-traded funds (“ETFs”) designed to solve today’s most pressing portfolio construction challenges, today launches its newest ETF, the Simplify Macro Strategy ETF (NYSE Arca: FIG).
FIG is a modern version of the Balanced Portfolio, designed to be a balanced portfolio in terms of asset class risk structured to seek equity-like returns with lower volatility. strategy based on the portfolio management team’s interpretation of major national, regional and global economic events.
“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 on course. With equities and fixed income both experiencing a period of negative returns due to the current market environment, investors are eager to find ways that will help them hedge their downside risk, deliver returns uncorrelated and generate revenue. We believe the traditional 60/40 portfolio no longer offers the protection and diversification it once did, so we’re excited to offer an easily accessible solution to the allocation problem,” said Michael Green, CFA. , portfolio manager and chief strategist at Simplify.
Simplify views FIG as a total portfolio solution for investors due to the Fund’s exposure to a diverse set of risk factors. Using a combination of equity futures, puts and calls, FIG aims to provide core equity exposure that is hedged and positively convex. Hedged exposures to credit risk and volatility premiums aim to provide income with limited duration exposure, while exposure to managed commodity and rate futures aims to add absolute return, sensitivity to inflation and a diversification of equities in the portfolio.
FIG is the latest addition to Simplify’s diverse lineup of unique and highly differentiated ETFs, which offers investors innovative solutions to navigate today’s challenging market environment.
Earlier this year, Simplify launched the ETFs Simplify Managed Futures Strategy (CTA) which seeks absolute returns with little correlation to the equity market, while ETFs such as the Simplify US Equity PLUS Downside Convexity ETF (SPD) and the Simplified Interest Rate Hedging ETF (PFIX) offer exposure to large cap domestic equities and fixed income securities, while using options to hedge against downside risk.
Simplify also offers the Simplify Healthcare ETF (ROSE)an actively managed ETF focused on leading companies in biotech and healthcare that is also the first ETF committed to donating all of its net fund management profits to Susan G. Komen®, the world’s leading cancer relief organization against breast cancer.
ABOUT SIMPLIFY ASSET MANAGEMENT INC.
Simplify Asset Management Inc. is a registered investment adviser founded in 2020 to help advisers address the most pressing portfolio challenges through an innovative set of options-based strategies. By taking into account real investor needs and market behavior, as well as the non-linear power of options, our strategies deliver the tailored portfolio results that clients seek. 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 investing.
Investing in the funds involves risks, including possible loss of capital.
The fund is actively managed and is subject to the risk that the strategy may not produce the expected results. The fund is new and has a limited operating history to assess.
The use of derivatives and futures contracts involves risks different from or possibly greater than the risks associated with a direct investment in transferable securities. These risks include (i) the risk that the counterparty to a derivative transaction will not fulfill its contractual obligations; (ii) risk of misvaluation or incorrect valuation; and (iii) the risk that changes in the value of the derivative or futures contract will not be perfectly correlated with the underlying asset, rate or index. Derivatives prices are highly volatile and can fluctuate significantly over a short period of time. The Fund’s use of leverage, such as borrowing money to buy securities or using options, will incur additional costs for the Fund and magnify the Fund’s gains or losses.
The Fund invests in ETFs (Exchange Traded Funds) and incurs higher expenses than if invested directly in the underlying ETF. 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 that are below investment grade credit quality (commonly referred to as “junk bonds”) which may be volatile, difficult to price and have less liquidity.
Although the option overlay is intended to enhance the performance of the Fund, there can be no assurance that it will do so. The use of an option overlay strategy involves the risk that as the buyer of a put or call option, the Fund may lose the entire premium invested in the option if the Fund does not exercise the option. In addition, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and therefore present more volatility and liquidity risk.
Simplify ETFs are distributed by Foreside Financial Services, LLC.
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