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Simplify Launches Single-Fund Solutions for Investors Looking to Add Capital Efficient Exposure to Gold PLUS Income & U.S. Small-Caps PLUS Income
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Simplify Gold Strategy PLUS Income ETF (YGLD) provides leveraged exposure to gold with an income-generating options overlay while the Simplify US Small Cap PLUS Income ETF (SCY) targets 100% exposure to U.S. small-caps with an options overlay
December 03, 2024
NEW YORK – Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today added two unique new funds to its suite of income-oriented strategies with the launch of the Simplify Gold Strategy PLUS Income ETF (YGLD) and Simplify US Small Cap PLUS Income ETF (SCY).
Designed for investors seeking to balance growth, income, and capital efficiency, these funds blend enhanced asset exposure with monthly income-generating potential through their proprietary options overlay strategies.
“At Simplify, one of our core missions is designing tools that allow investors and advisors to build the most capital efficient portfolios possible, and it’s precisely that thinking that drove the creation of YGLD and SCY,” said David Berns, Chief Investment Officer and Cofounder of Simplify. “Both gold and small-cap equities have a role to play in a diversified portfolio and now, through these new ETFs, they can play that role while simultaneously providing an enhanced income stream. We’re very excited to be bringing these funds to market at a time when the search for enhanced yield has perhaps never been more front and center.”
YGLD is an actively managed ETF that aims to provide a 150% exposure to gold through the use of gold futures contracts. The Fund will rebalance to that 150% exposure level on a quarterly basis, a schedule designed to reduce the volatility drag associated with leveraged approaches that rebalance daily. The options overlay for YGLD will primarily be involved in selling put spreads on a variety of underlying instruments and may add to the Fund’s total return in addition to providing attractive monthly income.
SCY is also actively managed and designed to provide 100% exposure to U.S. small-cap equities while also generating enhanced income via an options overlay focused on writing short-term spreads on a variety of underlying assets.
“The capital efficient approach underpinning SCY provides a monthly income stream without capping upside gains,” continued Berns. “This is a key contrast to other U.S. small-cap equity + income strategies currently on the market, which all put a cap on potential gains, a significant drawback for what is, at its heart, a growth exposure.”
Berns also noted that neither fund provides investors with a K-1 tax form.
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.
Designed for investors seeking to balance growth, income, and capital efficiency, these funds blend enhanced asset exposure with monthly income-generating potential through their proprietary options overlay strategies.
“At Simplify, one of our core missions is designing tools that allow investors and advisors to build the most capital efficient portfolios possible, and it’s precisely that thinking that drove the creation of YGLD and SCY,” said David Berns, Chief Investment Officer and Cofounder of Simplify. “Both gold and small-cap equities have a role to play in a diversified portfolio and now, through these new ETFs, they can play that role while simultaneously providing an enhanced income stream. We’re very excited to be bringing these funds to market at a time when the search for enhanced yield has perhaps never been more front and center.”
YGLD is an actively managed ETF that aims to provide a 150% exposure to gold through the use of gold futures contracts. The Fund will rebalance to that 150% exposure level on a quarterly basis, a schedule designed to reduce the volatility drag associated with leveraged approaches that rebalance daily. The options overlay for YGLD will primarily be involved in selling put spreads on a variety of underlying instruments and may add to the Fund’s total return in addition to providing attractive monthly income.
SCY is also actively managed and designed to provide 100% exposure to U.S. small-cap equities while also generating enhanced income via an options overlay focused on writing short-term spreads on a variety of underlying assets.
“The capital efficient approach underpinning SCY provides a monthly income stream without capping upside gains,” continued Berns. “This is a key contrast to other U.S. small-cap equity + income strategies currently on the market, which all put a cap on potential gains, a significant drawback for what is, at its heart, a growth exposure.”
Berns also noted that neither fund provides investors with a K-1 tax form.
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.
