Simplify Adds Three Funds to Its Suite of Equity ETFs Offering Downside Convexity

Rhea-AI Summary

Simplify Asset Management has launched three new ETFs: RTYD (US Small Cap PLUS Downside Convexity), EAFD (Developed Ex-US PLUS Downside Convexity), and EMGD (Emerging Markets PLUS Downside Convexity). These funds are designed to provide investors exposure to various markets while incorporating systematic options overlays to enhance performance during market volatility. CEO Paul Kim emphasized the importance of these offerings amidst ongoing global market uncertainties. Simplify's ETF assets recently surpassed $1 billion, highlighting growing investor interest.

Positive

• Launch of three new ETFs: RTYD, EAFD, EMGD.
• Funds aim to provide downside convexity amid market volatility.
• Recent ETF assets surpassed $1 billion, indicating strong investor interest.

Negative

• The funds are new with limited operating history, presenting uncertainties.
• Investment in options involves risks that may not correlate with underlying assets.

New ETFs provide exposure to U.S. small caps, Developed ex-U.S., and Emerging Markets, respectively; all with systematic options overlays designed to boost performance during extreme market moves

NEW YORK--(BUSINESS WIRE)-- Simplify Asset Management (“Simplify”), an innovative provider of Exchange Traded Funds (“ETFs”) designed to solve today’s most pressing portfolio construction challenges, is today announcing the start of trading for three new funds that continue to highlight the firm’s leadership in delivering sophisticated exposures with downside convexity.

Launching today are:

• The Simplify US Small Cap PLUS Downside Convexity ETF (RTYD);
• The Simplify Developed Ex-US PLUS Downside Convexity ETF (EAFD); and
• The Simplify Emerging Markets PLUS Downside Convexity ETF (EMGD).

In each case, the fund’s respective core holdings are delivered via cost-effective index exposure. A modest option overlay budget is then deployed into a series of options positions for each ETF that create downside convexity. The goal in each case is to provide investors with the opportunity for capital appreciation while also potentially boosting performance during extreme selloffs via the systematic options overlay.

“Equity and convexity were the focus of the first funds we brought to market in late 2020 and we’ve been thrilled with the response from investors and advisors who have gravitated to the twin goals these funds have of allowing performance participation on the upside and convex equity payoffs on the downside,” said Paul Kim, CEO & Co-Founder of Simplify. “Adding to our suite of equity and convexity ETFs has continued to be one of our main goals, and we’re very pleased to be launching RTYD, EAFD and EMGD.”

“Global market volatility is likely to remain a fact of investors’ lives for the foreseeable future, amidst geopolitical uncertainty, diverging Central Bank policies, inflation concerns and a number of other key factors,” continued Kim. “With these new funds and others already in our fund family, we’re working to provide a complete toolset for investors in domestic and international equities to build and maintain a diversified portfolio with added opportunity for downside convexity.”

RTYD, EAFD and EMGD join a Simplify ETF lineup that recently crossed the $1 billion mark. For more information on Simplify’s full lineup of ETFs, please 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.

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 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 Fund invests in ETFs (Exchange-Traded Funds) and is therefore subject to the same risks as the underlying securities in which the ETF invests as well as entails higher expenses than if invested into the underlying ETF directly. The fund invests primarily in ETFs that invest in securities domiciled in countries outside the U.S. and Canada that may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. and Canadian companies. These companies may be subject to

additional risks, including political and economic risks, civil conflicts and war, greater volatility, expropriation and nationalization risks, currency fluctuations, higher transaction costs, delayed settlement, and less stringent investor protection and different disclosure standards.

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.

Simplify ETFs are distributed by Foreside Financial Services, LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220111005416/en/

MEDIA:

Chris Sullivan

MacMillan Communications

(212) 473-4442

chris@macmillancom.com

Source: Simplify Asset Management

FAQ

What are the new ETFs launched by Simplify Asset Management?

Simplify Asset Management has launched three new ETFs: RTYD, EAFD, and EMGD.

What is the purpose of the downside convexity strategy in the new ETFs?

The downside convexity strategy aims to enhance performance during market selloffs.

How much have Simplify's ETF assets surpassed recently?

Simplify's ETF assets recently surpassed $1 billion.

Who is the CEO of Simplify Asset Management?

The CEO of Simplify Asset Management is Paul Kim.

When were the new funds RTYD, EAFD, and EMGD launched?

The new funds RTYD, EAFD, and EMGD were launched on January 11, 2022.