Simplify Announces Launch of the Simplify Macro Strategy ETF (FIG) Led by Hedge Fund Veteran Michael Green
May 17 2022 - 8:56AM
Business Wire
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.
© 2022 Simplify ETFs. All rights reserved.
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MEDIA CONTACT: Chris Sullivan MacMillan Communications
(212) 473-4442 chris@macmillancom.com
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