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Simplify Launches U.S. Equity ETF Powered by the Machine Learning Approach Pioneered by Wolfe Research
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The Simplify Wolfe US Equity 150/50 ETF (WUSA) consists of long and short exposure to a range of U.S. equities, with a proprietary machine learning algorithm analyzing hundreds of fundamental factors to identify both long and short investment opportunities
September 24, 2024
NEW YORK – Simplify Asset Management (“Simplify”), an innovative provider of Exchange Traded Funds (“ETFs”), is today adding to its lineup of compelling equity exposures with the launch of the Simplify Wolfe US Equity 150/50 ETF (WUSA).
The fund is designed to seek capital appreciation by taking a long position in approximately 250 stocks and a short position in approximately 150 stocks. Equity selection is driven by a proprietary multi-factor, machine-learning stock selection model developed by Wolfe Research, WUSA’s subadvisor, and an industry-leading quantitative research firm.
“We’re very excited to be introducing WUSA in partnership with the team at Wolfe Research,” said CIO and Cofounder David Berns, Ph.d. with Simplify. “When it comes to machine learning-powered investment approaches, the model matters; and there is no firm more experienced or better qualified when it comes to the construction of sophisticated, differentiated models than Wolfe.”
The machine learning algorithm underpinning WUSA analyzes over 300 factors across thousands of data points to detect patterns that can help forecast securities prices. Unlike a quantitative model designed by humans, a machine learning model of this kind “learns” from historical data and develops its own model, free of human bias, through the identification of statistically significant patterns.
“As the algorithm ‘learns,’ it will identify those U.S. equities it has determined have the highest and lowest forward expected returns, respectively, and those stocks will in turn make up each basket of the WUSA portfolio,” added David. “Additionally, the fund’s 150/50 allocation structure widens the spectrum of returns, positive or negative, that WUSA can potentially harvest, making this a powerful new tool for investors and advisors looking for the opportunity to achieve capital appreciation from their equity exposures.”
WUSA joins a Simplify ETF lineup that has seen tremendous growth over the past year+, in terms of both new products and assets under management, with funds like the $1.3 billion Simplify MBS ETF (MTBA) and the Simplify Aggregate Bond ETF (AGGH) drawing attention for the income-producing capabilities, while the Simplify Volatility Premium ETF (SVOL), now at $1.2 billion in AUM, has become the largest fund in the firm’s equity suite.
“Today’s markets require new solutions, and with funds like WUSA, MTBA, AGGH, and SVOL, we are pleased to be providing the tools that can help address so many of the new challenges investors and advisors are facing,” added Simplify’s CIO and Cofounder David Berns, Ph.D.
More information on WUSA.
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.
The fund is designed to seek capital appreciation by taking a long position in approximately 250 stocks and a short position in approximately 150 stocks. Equity selection is driven by a proprietary multi-factor, machine-learning stock selection model developed by Wolfe Research, WUSA’s subadvisor, and an industry-leading quantitative research firm.
“We’re very excited to be introducing WUSA in partnership with the team at Wolfe Research,” said CIO and Cofounder David Berns, Ph.d. with Simplify. “When it comes to machine learning-powered investment approaches, the model matters; and there is no firm more experienced or better qualified when it comes to the construction of sophisticated, differentiated models than Wolfe.”
The machine learning algorithm underpinning WUSA analyzes over 300 factors across thousands of data points to detect patterns that can help forecast securities prices. Unlike a quantitative model designed by humans, a machine learning model of this kind “learns” from historical data and develops its own model, free of human bias, through the identification of statistically significant patterns.
“As the algorithm ‘learns,’ it will identify those U.S. equities it has determined have the highest and lowest forward expected returns, respectively, and those stocks will in turn make up each basket of the WUSA portfolio,” added David. “Additionally, the fund’s 150/50 allocation structure widens the spectrum of returns, positive or negative, that WUSA can potentially harvest, making this a powerful new tool for investors and advisors looking for the opportunity to achieve capital appreciation from their equity exposures.”
WUSA joins a Simplify ETF lineup that has seen tremendous growth over the past year+, in terms of both new products and assets under management, with funds like the $1.3 billion Simplify MBS ETF (MTBA) and the Simplify Aggregate Bond ETF (AGGH) drawing attention for the income-producing capabilities, while the Simplify Volatility Premium ETF (SVOL), now at $1.2 billion in AUM, has become the largest fund in the firm’s equity suite.
“Today’s markets require new solutions, and with funds like WUSA, MTBA, AGGH, and SVOL, we are pleased to be providing the tools that can help address so many of the new challenges investors and advisors are facing,” added Simplify’s CIO and Cofounder David Berns, Ph.D.
More information on WUSA.
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.
