Simplify Asset Management has expanded its fund lineup with the new Simplify US Equity PLUS QIS ETF (NYSE Arca: SPQ). The fund seeks long-term capital appreciation by overlaying a basket of quantitative investment strategies on top of core U.S. equity exposure.
Launched today on the NYSE, SPQ will invest in U.S. equities through low cost equity ETFs and equity futures. Meanwhile, about half of the fund’s assets will be invested in shares of the Simplify Multi-QIS Alternative ETF (QIS). The ETF provides exposure to an optimized collection of 10-20 quant-driven strategies. Launched in July, QIS already has almost $120 million in assets.
Simplify’s CIO David Berns said the goal of SPQ’s 100% equity + 50% QIS portfolio is “to enhance both the absolute and risk-adjusted returns of a core equity investment.” He added that clients “have been seeking a simple way to gain exposure to an alternative return source without reducing equity exposure.” And according to Berns, “that is exactly what we have designed with SPQ.”
A Growing Lineup of Simplify ETFs
The launch of SPQ follows a series of ETFs that the company has rolled out this year. In addition to QIS, the firm launched in June the actively managed opportunistic credit ETF, the Simplify Opportunistic Income ETF (CRDT). The issuer also launched in June the machine learning fund, the Simplify Market Neutral Equity Long/Short ETF (EQLS).
“Simplify has successfully brought institutional expertise into the ETF industry in recent years,” said VettaFi’s Head of Research Todd Rosenbluth. “It’s great to see them provide more tools for advisors in an accessible format.”
SPQ carries an expense ratio of 100 basis points.
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