Simplify Launches First-of-its-Kind Multi-Quantitative Strategy ETF (QIS)
Simplify team curates a diversified portfolio of quantitative strategies from across Wall Street to create ETF access to an investment category used by the biggest hedge funds and institutions
QIS is designed to play a key role for advisors and investors in delivering positive absolute returns and income and seeks to do so by investing in a diversified portfolio of third-party quantitative investment strategies across equities, interest rates, commodities, and currencies.
The QIS approach begins with Simplify evaluating thousands of quantitative strategies managed by the biggest investment banks, narrowing that universe down to the few hundred with the most compelling risk-adjusted return characteristics. Simplify’s highly experienced team of investment professionals then works with each third-party strategy provider to perform an in-depth quantitative and qualitative review of their strategy to further pare the list down, arriving at an optimized collection of 10-20 strategies seeking to achieve positive returns and mitigate asset class- and single-strategy risks.
“Access to best-in-class quant-driven strategies is a must-have for investors and advisors seeking to position their portfolios amidst a range of risks, both known and unknown, and a consistently elevated level of volatility that has defined every asset class for the past several years,” said David Berns, PhD, Simplify’s Chief Investment Officer and Cofounder. “Yet even for those more institutional investors who can gain access to leading quantitative approaches, the question quickly becomes which ones will provide truly differentiated return premia with low correlations to traditional equity and bond exposures. The type of research required to answer that question often requires its own team of quants to measure and gauge quant performance and performance drivers.”
“With QIS, we’re able to leverage the access Simplify has to the most experienced and differentiated quantitative investment providers in the world, as well as our deep understanding of how to review, select and manage ongoing exposures across quant approaches. We’re very pleased to be bringing QIS to market and believe this fund represents a major step forward in the evolution of the alternative ETF category,” added Berns.
More information on QIS can be found 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:
Options: An option is a contract that gives the buyer the right to either buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a pre-determined price ("strike") by a specific date ("expiry"). An "outright" is another name for a single option leg. A "spread" is when options are bought at one strike and an equal amount of options are sold at a different strike, all at the same expiry.
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 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 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 earnings and prospects of small and medium-sized companies are more volatile than larger companies and may experience higher failure rates than larger companies. Small and medium-sized companies normally have a lower trading volume than larger companies, which may tend to make their market price fall more disproportionately than larger companies in response to selling pressures and may have limited markets, product lines, or financial resources and lack management experience.
Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.
©2023 Simplify ETFs. All rights reserved.
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MEDIA:
Chris Sullivan
Craft & Capital
(212) 473-4442
chris@craftandcapital.com
Source: Simplify Asset Management Inc.
