Simplify Launches New Suite of Innovative Model Portfolios

Using firm’s fast-growing suite of Exchange Traded Funds, new model portfolios seek to provide advisors and investors with capital efficiency, convexity and enhanced carry strategies

Simplify Asset Management (“Simplify”), an innovative provider of Exchange Traded Funds (“ETFs”) designed to solve today’s most pressing portfolio construction challenges, has today unveiled a new suite of ETF-driven model portfolios built using the firm’s lineup of first-of-their-kind funds.

In total, Simplify is today launching four model portfolios, with a variety of underlying fixed income and equity exposures available to financial professionals.

The four portfolios cover the risk/return spectrum, ranging from Conservative to Moderate to Growth, with a fourth approach focused on income generation.

For the fixed income sleeves of the various portfolios, Simplify starts with a core exposure to the firm’s Simplify Risk Parity Treasury ETF (TYA), and then layers on allocations to the Simplify High Yield PLUS Credit Hedge ETF (CDX), Simplify Volatility Premium ETF (SVOL) and the Simplify Interest Rate Hedge ETF (PFIX).

“TYA allows us to create the duration exposure of a typical fixed income portfolio at a fraction of the usual cost. CDX provides an opportunity for enhanced income with credit exposure that includes tail hedges, while SVOL allows us to deploy the equity volatility premium as a dominant risk-adjusted source of income. Finally, PFIX aims to create a hedge against rising rates when starting in a low yield environment,” said David Berns, PhD, CIO & Co-Founder with Simplify. “Working with these building blocks, we are able to create and manage a powerful new set of tools that provide a modernized approach to fixed income.”

Within the equity sleeves, the Simplify US Equity PLUS Downside Convexity ETF (SPD) and/or other tail hedged equity strategies from Simplify provide a base upon which allocations to the Simplify US Equity PLUS Upside Convexity ETF (SPUC), Simplify Hedged Equity ETF (HEQT) and Simplify US Equity PLUS GBTC ETF (SPBC) are added to provide what the firm believes to be a more modernized approach to navigating equity exposure.

“Our mission at Simplify is not just to build the industry’s leading suite of ETFs focused on convexity, tail risk hedging and volatility premiums, it is to help empower investors to put these approaches to work in efficient and effective ways that are tailored to their specific needs and risk tolerances,” added Berns. “We’re thrilled to finally roll out our model portfolios, showcasing the precise role that each ETF exposure we have launched since inception plays in portfolios, and giving allocators an explicit yet simple guide to utilizing our novel suite of ETFs.”

For more information on Simplify’s suite of model portfolios, please visit https://www.simplify.us/model-portfolios.

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.

Important Information

The ETFs used within the models involve risks including the possible loss of principal. There is no guarantee that the allocation of ETFs in certain percentages will result in objectives of Conservative, Moderate, Growth and Income. Actual investment outcomes will vary. Fixed income investments are subject to credit, prepayment and interest rate risk. As interest rates rise the value of bond prices will decline and an investor may lose money. Bonds rated below investment grade such as high yield securities (“junk bonds”) involve greater risk of default.

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 view/download a prospectus online at https://www.simplify.us/etfs. Please read the prospectus carefully before you invest.

Tail Risk Hedge: The Fund may engage in transactions such as options to hedge against a decline in the value of securities owned or an increase in the price of securities which a Fund plans to purchase. As the buyer of a put or call options, the Fund risks losing the entire premium invested in the option if the Fund does not exercise the option.

Convexity: A measure of how the duration of a bond changes in correlation to an interest rate change. The greater the convexity of a bond the greater the exposure of interest rate risk to the portfolio.

Simplify ETFs are distributed by Foreside Financial Services, LLC.

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