The Simplify Downside Interest Rate Hedge Strategy ETF is Now the Simplify Bond Bull ETF
Simplify Asset Management has renamed the Simplify Downside Interest Rate Hedge Strategy ETF to the Simplify Bond Bull ETF, while maintaining its ticker symbol (RFIX) and investment strategy. The fund, launched in December 2024, aims to profit from falling long-term interest rates through a proprietary approach similar to a long-term call option on U.S. Treasury bonds.
The ETF is designed to maximize positive convexity and minimize time decay, serving as a hedge against market stress scenarios where Treasury yields typically decline. RFIX functions as a mirror image of the Simplify Interest Rate Hedge ETF (PFIX), which hedges against rising long-term rates. Since its launch on December 10, 2024, RFIX has accumulated approximately $100 million in AUM.
Simplify Asset Management ha rinominato il Simplify Downside Interest Rate Hedge Strategy ETF in Simplify Bond Bull ETF, mantenendo il suo simbolo ticker (RFIX) e la strategia di investimento. Il fondo, lanciato a dicembre 2024, mira a trarre profitto dalla diminuzione dei tassi d'interesse a lungo termine attraverso un approccio proprietario simile a un'opzione call a lungo termine sui titoli del Tesoro statunitense.
L'ETF è progettato per massimizzare la convexity positiva e minimizzare il decadimento temporale, fungendo da copertura contro scenari di stress di mercato in cui i rendimenti del Tesoro tendono a diminuire. RFIX funge da immagine speculare del Simplify Interest Rate Hedge ETF (PFIX), che si copre contro l'aumento dei tassi a lungo termine. Dalla sua creazione, il 10 dicembre 2024, RFIX ha accumulato circa $100 milioni in AUM.
Simplify Asset Management ha renombrado el Simplify Downside Interest Rate Hedge Strategy ETF como Simplify Bond Bull ETF, manteniendo su símbolo de cotización (RFIX) y su estrategia de inversión. El fondo, lanzado en diciembre de 2024, busca beneficiarse de la caída de las tasas de interés a largo plazo mediante un enfoque propietario similar a una opción de compra a largo plazo sobre los bonos del Tesoro de EE. UU.
El ETF está diseñado para maximizar la convexidad positiva y minimizar la pérdida de tiempo, sirviendo como una cobertura contra escenarios de estrés del mercado donde los rendimientos del Tesoro tienden a disminuir. RFIX funciona como una imagen especular del Simplify Interest Rate Hedge ETF (PFIX), que se protege contra el aumento de las tasas a largo plazo. Desde su lanzamiento el 10 de diciembre de 2024, RFIX ha acumulado aproximadamente $100 millones en AUM.
심플리 자산 관리(Simplify Asset Management)는 심플리 다운사이드 금리 헤지 전략 ETF의 이름을 심플리 본드 불 ETF(Simplify Bond Bull ETF)로 변경하였으며, 티커 기호(RFIX)와 투자 전략은 그대로 유지하고 있습니다. 2024년 12월에 출시된 이 펀드는 미국 재무부 채권에 대한 장기 콜 옵션과 유사한 독자적인 접근 방식을 통해 장기 금리가 하락할 때 이익을 추구합니다.
이 ETF는 긍정적인 볼록성을 극대화하고 시간 소멸을 최소화하도록 설계되어 있으며, 재무부 수익률이 일반적으로 하락하는 시장 스트레스 시나리오에 대한 헤지 역할을 합니다. RFIX는 장기 금리 상승에 대한 헤지를 제공하는 심플리 금리 헤지 ETF(PFIX)의 반영으로 기능합니다. 2024년 12월 10일 출시 이후, RFIX는 약 $100 백만의 AUM을 축적했습니다.
Simplify Asset Management a renommé le Simplify Downside Interest Rate Hedge Strategy ETF en Simplify Bond Bull ETF, tout en conservant son symbole boursier (RFIX) et sa stratégie d'investissement. Le fonds, lancé en décembre 2024, vise à profiter de la baisse des taux d'intérêt à long terme grâce à une approche propriétaire similaire à une option d'achat à long terme sur les obligations du Trésor américain.
L'ETF est conçu pour maximiser la convexité positive et minimiser l'érosion temporelle, servant de couverture contre des scénarios de stress de marché où les rendements des obligations du Trésor ont tendance à diminuer. RFIX fonctionne comme un reflet du Simplify Interest Rate Hedge ETF (PFIX), qui se couvre contre la hausse des taux à long terme. Depuis son lancement le 10 décembre 2024, RFIX a accumulé environ $100 millions en AUM.
Simplify Asset Management hat den Simplify Downside Interest Rate Hedge Strategy ETF in Simplify Bond Bull ETF umbenannt, während das Tickersymbol (RFIX) und die Anlagestrategie beibehalten werden. Der Fonds, der im Dezember 2024 gestartet wurde, zielt darauf ab, von fallenden langfristigen Zinssätzen zu profitieren, indem er einen proprietären Ansatz verfolgt, der einer langfristigen Kaufoption auf US-Staatsanleihen ähnelt.
Der ETF ist darauf ausgelegt, die positive Konvexität zu maximieren und den Zeitverfall zu minimieren, und dient als Absicherung gegen Markstress-Szenarien, in denen die Renditen von Staatsanleihen typischerweise sinken. RFIX funktioniert als Spiegelbild des Simplify Interest Rate Hedge ETF (PFIX), der sich gegen steigende langfristige Zinsen absichert. Seit seiner Einführung am 10. Dezember 2024 hat RFIX etwa $100 Millionen in AUM angesammelt.
- Fund has attracted $100 million in AUM within weeks of launch
- Offers unique strategy for profiting from falling interest rates
- Provides hedging capabilities against market stress scenarios
- None.
Insights
The rebranding of RFIX to Simplify Bond Bull ETF marks a significant development in the fixed-income ETF landscape, particularly given the fund's impressive $100 million AUM accumulation in just two months. This rapid adoption suggests strong market demand for sophisticated interest rate hedging tools.
The fund's strategy employs advanced options mechanics that deserve attention. By maximizing positive convexity, RFIX offers potentially amplified returns when interest rates fall, while the emphasis on minimizing time decay addresses a critical challenge in options-based strategies - the erosion of option value over time. This combination creates a more efficient vehicle for expressing directional views on interest rates compared to traditional bond positions.
The timing of this product and its subsequent rebranding is particularly noteworthy within the current market context. As investors navigate uncertainty around the Federal Reserve's monetary policy trajectory, RFIX provides a specialized tool for positioning portfolios for potential rate decreases. The fund's structure, which mimics long-term call options on Treasury bonds, offers a more capital-efficient approach than direct bond purchases for investors seeking to capture price appreciation in a falling rate environment.
The complementary relationship between RFIX and PFIX creates a comprehensive suite for interest rate risk management, allowing investors to tactically adjust their rate exposure based on market outlook. This versatility is particularly valuable for institutional investors and sophisticated portfolio managers seeking precise tools for expressing directional views on interest rates.
New name for recent addition to Simplify’s ETF family better reflects the Fund’s strategy, which has proven popular with investors seeking to hedge against falling long-term interest rates
The fund’s ticker symbol (RFIX), investment strategy and objective all remain the same.
RFIX is built for investors seeking to profit from falling long-term interest rates by utilizing a proprietary approach which functions similarly to a long-term call option on
“We’ve been pleased with the response that RFIX has received since we brought it to market just a few weeks back, but we also thought ‘let’s call this fund what it is,’ so for bond bulls, this is the ETF for you,” said Harley Bassman, Managing Partner at Simplify, and creator of the approach underpinning both RFIX and PFIX.
Since launching on December 10, 2024, RFIX has grown to approximately
For more information on RFIX and the entire Simplify ETF family, visit: https://www.simplify.us/
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.
DEFINITIONS:
Convexity: A measure of how the duration of a bond changes as interest rates change. The greater the convexity of a bond, the greater that change will be for a specific interest rate shift.
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 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 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.
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.
TIPS Risk: TIPS are debt instruments issued by the by the United States Department of the Treasury. The principal of TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. 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. Volatility Risk. Significant short-term price movements could adversely impact the performance of the Fund. The Fund’s performance may be volatile, which means that the Fund’s performance may be subject to substantial short-term changes up or down.
Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250218525338/en/
Media:
Rob Jesselson
rob@craftandcapital.com
Craft & Capital
Source: Simplify Asset Management Inc.
FAQ
What is the new name of the Simplify Downside Interest Rate Hedge Strategy ETF (RFIX)?
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