PCR’s private credit strategy focuses on BDCs and publicly traded closed-end funds, with a professionally managed credit hedge to mitigate adverse credit events

Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify VettaFi Private Credit Strategy ETF (PCR).

PCR seeks to provide investors with private credit exposure alongside a credit hedge strategy. The fund’s private credit strategy seeks to track the returns of the VettaFi Private Credit Index, which is derived from a universe of Business Development Companies (BDCs) and publicly traded Closed End Funds (CEFs) that are primarily engaged in private credit.

Eligible potential index constituents must meet minimum market capitalization and liquidity requirements and are selected based on percentile scores for volatility and yield.*

Additionally, and key to PCR’s points of differentiation, the fund also employs a proprietary credit hedging strategy that goes long stocks with high-quality metrics and short stocks that exhibit low-quality metrics. This hedge has historically had a positive correlation with credit spreads with a historical positive carry.

“Private credit has seen tremendous growth over the past decade as institutional and high net worth investors have increasingly turned to the category for yield and the powerful role it can play in diversifying a traditional 60/40 portfolio,” said David Berns, Chief Investment Officer and Co-Founder of Simplify. “However, for most investors, access to this market has typically been limited or marked by high fees, complex tax reporting, and severely limited liquidity. With PCR, we’re excited to deliver a compelling, liquid private credit solution that improves investor access and combines attractive potential income with credit hedges.”

“We believe BDCs and private credit-focused CEFs can offer more attractive yields than traditional high yield bond funds,” added Berns. “On top of that, PCR’s built-in credit hedge is designed to help manage downside risk during credit events and periods of credit spread widening.”

PCR is the latest addition to the fast-growing alternatives and income-focused segments of Simplify’s ETF lineup, which just this year has seen the firm introduce new barrier income and target distribution ETFs, a long/short currency strategy, and more.

For more information on the Simplify VettaFi Private Credit Strategy ETF (PCR), click here.

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.

Definitions:

Carry: The return obtained from holding an asset assuming the underlying price of the asset remains stable.

Credit Spread: The difference in yield between two debt securities of the same maturity but different credit quality.

Factor Hedging: A risk management strategy that aims to mitigate the impact of specific market factors on an investment portfolio

Quality-Junk: A long/short equity factor created by being long quality equity names while being short junk equity names. Quality equities generally have high margins, profit stability, and strong balance sheets. Junk names are generally those stocks with high sensitivity to an increase in debt refinancing costs.

Spread: The difference or gap between two prices, rates, or yields.

Volatility: A measure of how much and how quickly prices move over a given span of time.

VettaFi Private Credit Index: Targets exposure to private credit through Business Development Companies (BDCs) and Closed-End Funds (CEFs) that primarily invest in the private credit sector.

IMPORTANT INFORMATION:

^*The constituents in the BDC Sub-Universe and CEF Sub-Universe are then assigned proprietary percentile rank scores based on volatility and dividend yield. Volatility is calculated based on the last 180 trading days, and dividend yield is based on the trailing twelve-month dividend yield.

Investors should carefully consider the investment objectives, risks, charges, and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF's prospectus or Summary 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 fund involves risk, including possible loss of principal.

The fund is actively-managed and is subject to the risk that the strategy may not produce the intended results.

The Fund invests in ETFs (Exchange-Traded Funds) and entails higher expenses than if invested into the underlying ETF directly. The lower the credit quality, the more volatile performance will be. When junk bonds sell off, the lowest-rated bonds are typically hit hardest, known as blow up risk. Likewise, the riskiest bonds typically rise fastest in a bull market, however, these investments that don't have a credit rating are typically the most volatile, hard to price and the least liquid.

The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. 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 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's investment in fixed income securities is subject to credit risk (the debtor may default) and prepayment risk (an obligation paid early) which could cause its share price and total return to be reduced. Typically, as interest rates rise the value of bond prices will decline and the fund could lose value.

Credit Risk: The Fund will lose money if the issuer or guarantor of a credit instrument goes bankrupt or is unable or unwilling to make interest payments and/or repay principal. The value of a security may decline if there are concerns about an issuer’s ability or willingness to make interest and or principal payments.

High Yield Risk: The Fund may have exposure to high yield debt also known as “junk bonds”. High yield securities and unrated securities of similar credit quality are subject to greater levels of credit, call, and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Non-Diversified Fund Risk: Because the Fund is non-diversified and may invest a greater portion of its assets in fewer issuers than a diversified fund, changes in the market value of a single portfolio holding could cause greater fluctuations in the Fund’s share price than would occur in a diversified fund.

Swaps Risk: Swaps are subject to tracking risk because they may not be perfect substitutes for the instruments they are intended to hedge or replace.

New Fund Risk: The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.

©2025 Simplify ETFs. All rights reserved.

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“We believe BDCs and private credit-focused CEFs can offer more attractive yields than traditional high yield bond funds.” - David Berns, Chief Investment Officer and Co-Founder of Simplify Asset Management.