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Simplify Launches Currency Strategy ETF (FOXY), Providing Actively Managed Solution for Implementing Exposure to Both Foreign Exchange Carry and Mean Reversion Return Premia

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Simplify Asset Management has launched the Simplify Currency Strategy ETF (FOXY), an actively managed fund designed to provide returns independent of stock and bond movements through foreign currency trading. The ETF implements two main strategies:

1. An Emerging Markets carry strategy involving eight currency pairs against the USD, going long on the four highest-interest-rate currencies and shorting the four lowest.

2. A G10 currency strategy focusing on six currency pairs, taking long positions in three currencies with the strongest yield momentum and shorting three with the lowest, aiming to benefit from mean reversion tendencies.

This approach differs from traditional passive currency ETFs by offering active management and dual-strategy exposure, potentially providing uncorrelated returns and portfolio diversification benefits.

Semplificare la Gestione degli Asset ha lanciato il Simplify Currency Strategy ETF (FOXY), un fondo gestito attivamente progettato per fornire rendimenti indipendenti dai movimenti di azioni e obbligazioni attraverso il trading di valute estere. L'ETF implementa due strategie principali:

1. Una che coinvolge otto coppie di valute rispetto al USD, prendendo posizioni lunghe sulle quattro valute con i tassi di interesse più elevati e posizioni corte sulle quattro più basse.

2. Una strategia valutaria G10 che si concentra su sei coppie di valute, assumendo posizioni lunghe in tre valute con la massima dinamica di rendimento e posizioni corte in tre con la più bassa, con l'obiettivo di beneficiare delle tendenze di ritorno alla media.

Questo approccio si differenzia dagli ETF valutari passivi tradizionali offrendo una gestione attiva e un'esposizione a doppia strategia, potenzialmente fornendo rendimenti non correlati e benefici di diversificazione del portafoglio.

Simplificar la Gestión de Activos ha lanzado el Simplify Currency Strategy ETF (FOXY), un fondo gestionado activamente diseñado para proporcionar rendimientos independientes de los movimientos de acciones y bonos a través del comercio de divisas extranjeras. El ETF implementa dos estrategias principales:

1. Una estrategia de carry en Mercados Emergentes que involucra ocho pares de divisas contra el USD, tomando posiciones largas en las cuatro divisas con las tasas de interés más altas y cortas en las cuatro más bajas.

2. Una estrategia de divisas G10 que se centra en seis pares de divisas, tomando posiciones largas en tres divisas con la mayor dinámica de rendimiento y cortando tres con la más baja, buscando beneficiarse de las tendencias de reversión a la media.

Este enfoque difiere de los ETF de divisas pasivos tradicionales al ofrecer gestión activa y exposición a estrategia dual, lo que potencialmente proporciona rendimientos no correlacionados y beneficios de diversificación de cartera.

자산 관리 간소화가 Simplify Currency Strategy ETF (FOXY)를 출시했습니다. 이는 외환 거래를 통해 주식 및 채권 움직임과 무관한 수익을 제공하도록 설계된 능동적으로 관리되는 펀드입니다. 이 ETF는 두 가지 주요 전략을 구현합니다:

1. 신흥 시장 캐리 전략으로, USD에 대한 여덟 개 통화 쌍이 포함되며, 네 개의 금리가 가장 높은 통화에서 롱 포지션을 취하고 네 개의 금리가 가장 낮은 통화에서 숏 포지션을 취합니다.

2. G10 통화 전략은 여섯 개 통화 쌍에 중점을 두고, 수익 모멘템이 가장 강한 세 개의 통화에서 롱 포지션을 취하고, 가장 낮은 세 개의 통화에서 숏 포지션을 취하며 평균 회귀 경향으로부터 이익을 얻는 것을 목표로 합니다.

이 접근 방식은 전통적인 패시브 통화 ETF와는 다르게 능동적인 관리와 이중 전략 노출을 제공하여 잠재적으로 비상관 수익과 포트폴리오 다각화 혜택을 제공합니다.

Simplifier la Gestion d'Actifs a lancé le Simplify Currency Strategy ETF (FOXY), un fonds géré activement conçu pour fournir des rendements indépendants des mouvements des actions et des obligations à travers le trading des devises étrangères. L'ETF met en œuvre deux stratégies principales :

1. Une stratégie de carry sur les Marchés Émergents, impliquant huit paires de devises par rapport au USD, prenant des positions longues sur les quatre devises avec les taux d'intérêt les plus élevés et des positions courtes sur les quatre plus bas.

2. Une stratégie de devises G10, qui se concentre sur six paires de devises, en prenant des positions longues dans trois devises ayant la plus forte dynamique de rendement et en intégrant des positions courtes dans trois des plus faibles, visant à tirer profit des tendances de retour à la moyenne.

Cette approche diffère des ETF de devises passives traditionnels en offrant une gestion active et une exposition à double stratégie, ce qui peut potentiellement fournir des rendements non corrélés et des avantages de diversification de portefeuille.

Vermögensverwaltung vereinfachen hat den Simplify Currency Strategy ETF (FOXY) ins Leben gerufen, einen aktiv verwalteten Fonds, der darauf abzielt, Renditen unabhängig von Bewegungen an Aktien- und Anleihemärkten durch den Handel mit fremden Währungen zu erzielen. Der ETF implementiert zwei Hauptstrategien:

1. Eine Carry-Strategie für Schwellenmärkte, die acht Währungspaare gegen den USD umfasst. Dabei wird in die vier Währungen mit den höchsten Zinssätzen investiert und in die vier mit den niedrigsten eine Leerverkaufsposition eingenommen.

2. Eine G10-Währungsstrategie, die sich auf sechs Währungspaare konzentriert, langfristige Positionen in drei Währungen mit dem stärksten Ertragsmomentum einnimmt und drei mit den niedrigsten verkauft, um von den Tendenzen zur Mittelwertbildung zu profitieren.

Dieser Ansatz unterscheidet sich von traditionellen passiven Währungs-ETFs, indem er aktives Management und eine doppelte Strategieexposition bietet, was potenziell unkorrelierte Renditen und Vorteile bei der Portfoliodiversifizierung bietet.

Positive
  • Offers portfolio diversification with returns uncorrelated to stocks and bonds
  • Provides dual-strategy exposure to both emerging and G10 currency markets
  • Implements sophisticated institutional-level currency trading strategies in an accessible ETF format
  • Features active management versus traditional passive currency ETFs
Negative
  • Currency market volatility could lead to unpredictable returns
  • Complex dual-strategy approach may increase operational risks
  • Performance heavily dependent on interest rate differentials and currency movements

Insights

The launch of the Simplify Currency Strategy ETF (FOXY) marks a significant evolution in currency investment accessibility, democratizing sophisticated institutional-level currency trading strategies for retail investors. This actively managed ETF employs two distinct approaches that warrant careful analysis:

The first strategy focuses on Emerging Market carry trades, where the ETF simultaneously: 1) Takes long positions in the four highest-yielding EM currencies against the USD 2) Short positions in the four lowest-yielding ones. This approach aims to capture the interest rate differential between currencies while managing directional risk through the paired long-short structure.

The second component targets G10 currency mean reversion, employing a momentum-based yield strategy across six currency pairs. This approach capitalizes on the historical tendency of developed market currencies to return to their average levels over time, potentially providing a stabilizing element to the overall strategy.

What makes FOXY particularly innovative is its active management approach in a space dominated by passive, single-currency products. This flexibility allows for dynamic adjustment to changing market conditions and interest rate environments. The dual strategy approach, combining EM carry with G10 mean reversion, provides natural diversification as these strategies typically respond differently to market stress events.

For portfolio construction, FOXY offers several compelling attributes: 1) Potential for returns uncorrelated with traditional assets, particularly valuable in the current high-correlation environment 2) Built-in risk management through the paired long-short structure 3) Exposure to both yield differentials and price appreciation opportunities.

However, investors should understand that currency strategies can face specific challenges: 1) Currency market volatility can overwhelm carry returns 2) Central bank interventions can disrupt mean reversion patterns 3) Emerging market currency exposure carries additional political and economic risks.

FOXY Is designed to provide returns independent of movements in stocks and bonds, applies a “carry” strategy to Emerging Market currencies and a mean reversion strategy to G10 currencies

NEW YORK--(BUSINESS WIRE)-- Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today introduced the Simplify Currency Strategy ETF (FOXY), an actively managed fund that takes long and short positions in foreign currencies, providing investors and advisors with a powerful portfolio building block designed to provide returns with little correlation to equities or bonds.

FOXY’s approach is built around two primary strategies.

First is an Emerging Markets carry strategy that utilizes eight Emerging Market currency pairs, with each currency paired against the U.S. dollar. The four currencies with the highest interest rates will be held “long,” while the four currencies with the lowest interest rates will be shorted. The differences in yield, or “carry,” combined with the changes in the currency levels become the fund’s profit.

The second strategy focuses on G10 currencies, utilizing six different currency pairs. The three currencies with the strongest yield momentum increase will be held “long” while the three currencies with the lowest yield momentum increase will be shorted. This strategy aims to benefit from the tendency for movements in G10 currencies to “mean-revert,” i.e. the tendency for these currencies to revert back to prior levels over time. The lower correlations between the G10 and Emerging Market strategies also serve to reduce risk.

“Historically, currency-focused ETFs have been passive vehicles and have largely focused on the movements of a single currency in relation to the U.S. dollar. But sophisticated institutions, hedge funds, and other large investors have long known the powerful role that an active carry strategy can play in managing currency exposure and tapping into sources for uncorrelated returns,” said David Berns, CIO and Co-Founder of Simplify. “With FOXY, investors and advisors now have a single-ticker solution to implement currency carry trades in their own portfolios and they can do so via the liquid, transparent ETF structure.”

“Where the U.S. dollar is headed in the months and years to come is anyone’s guess, and the same goes for the directions of those major currencies in both the developed and emerging markets,” said Berns. “But that type of volatility, actively managed, could be a source of opportunity for investors. We’re thrilled to be launching FOXY and further expanding our suite of active ETF offerings and we look forward to educating the marketplace about the role currency exposure can play in building a diversified, robust portfolio.”

For more information about FOXY, visit https://www.simplify.us/etfs/foxy-simplify-currency-strategy-etf

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.

GLOSSARY:

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

IMPORTANT INFORMATION:

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 subject to the risk that the strategy may not produce the intended results. The fund will also rely on the Futures Adviser’s judgments about the value and potential appreciation of particular securities which if assessed incorrectly could negatively affect the Fund. The fund is new and has a limited operating history to evaluate.

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.

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.

The Fund’s use of futures may involve different or greater risks than investing directly in securities and the contract may not correlate perfectly with the underlying asset. These risks include leverage risk which means a small percentage of assets invested in futures can have a disproportionately large impact on the Fund. This risk could cause the Fund to lose more than the principal amount invested. Futures contracts may become mispriced or improperly valued when compared to the adviser’s expectation and may not produce the desired investment results. The Fund’s exposure to futures contracts is subject to risks related to rolling. Extended periods of contango or backwardation can cause significant losses for the Fund. Any short sales of the futures contracts by the fund theoretically involves unlimited loss potential since the market price of securities sold short may continuously increase.

Investments linked to commodity or currency futures contracts including exposure to non-U.S. currencies can be highly volatile affected by market movements, changes in interest rates or factors affecting a particular industry or commodity. Changes in currency exchange rates can be unpredictable or change quickly which will affect the value of the Fund.

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

© 2025 Simplify ETFs. All rights reserved.

MEDIA CONTACT:

Rob Jesselson

Craft & Capital

rob@craftandcapital.com

Source: Simplify Asset Management

FAQ

What are the two main investment strategies of the FOXY ETF?

FOXY employs two strategies: an Emerging Markets carry strategy trading eight currency pairs against USD, and a G10 currency strategy focusing on six currency pairs based on yield momentum and mean reversion.

How does FOXY's emerging market carry strategy work?

The strategy goes long on the four emerging market currencies with highest interest rates and shorts the four with lowest rates, aiming to profit from interest rate differentials and currency movements.

What distinguishes FOXY from other currency ETFs?

FOXY is actively managed and implements dual currency strategies, unlike traditional passive currency ETFs that typically focus on single currency movements against the USD.

How does FOXY aim to provide portfolio diversification?

FOXY is designed to generate returns independent of stock and bond movements, utilizing currency carry trades and mean reversion strategies across both emerging and developed markets.

What is the mean reversion strategy FOXY uses for G10 currencies?

FOXY takes long positions in three G10 currencies with the strongest yield momentum and shorts three with the lowest, capitalizing on these currencies' tendency to revert to previous levels over time.

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