With FIG, Simplify Helps Investors Navigate the Challenge of Asset Allocation

Simplify Asset Management today announced the launch of its newest ETF, the Simplify Macro Strategy ETF (NYSE Arca: FIG). Described in a news release as “a modern take on the balanced portfolio,” FIG is designed to be a risk-balanced portfolio of asset classes structured to pursue equity-like returns with lower volatility.

The fund will invest in equity, fixed income, and alternative ETFs and derivatives, with a trading strategy that is based on the portfolio management team’s interpretation of large economic events on the national, regional, and global scale.

“We are very pleased to add this fund to our growing lineup, building on our history of launching innovative ETFs that help reduce market volatility and improve investors’ ability to stay the course,” said Michael Green, portfolio manager and chief strategist with Simplify, in a news release. “With equities and fixed income both experiencing a period of negative returns due to the prevailing market environment, investors are eager to find ways that will help them hedge their downside risk, provide uncorrelated returns, and generate income.”

Added Green: “We believe the traditional 60/40 portfolio no longer provides the protection and diversification that it has in the past, so we are excited to offer an easily accessible solution to the allocation problem.”

Simplify views FIG as a total portfolio solution for investors due to the fund’s exposure to a diversified set of risk drivers. By utilizing a combination of equity futures, put options, and call options, FIG aims to provide core equity exposure that is hedged and positively convex.

Hedged exposures to credit and volatility risk premia seeks to provide income with limited duration exposure, while managed futures exposure across commodities and rates intends to add absolute return, inflation sensitivity, and equity diversification to the portfolio.

FIG is the latest addition to Simplify’s lineup of ETFs, which provide investors with innovative solutions to navigate today’s challenging market environment.

Earlier this year, Simplify launched the Simplify Managed Futures Strategy ETF (NYSE Arca: CTA), which seeks absolute returns that have low correlation to the equities market, while ETFs like the Simplify US Equity PLUS Downside Convexity ETF (SPD) and the Simplify Interest Rate Hedge ETF (PFIX) offer exposure to domestic large-cap stocks and fixed income, respectively, while utilizing options to hedge against downside risk.

Simplify also offers the Simplify Health Care ETF (PINK), an actively managed ETF focused on leading companies in biotech and healthcare, which is also the first ETF committed to donating all of its net profits from managing the fund to breast cancer organization Susan G. Komen.

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