The Simplify Downside Interest Rate Hedge Strategy ETF is Now the Simplify Bond Bull ETF

Business Wire

Thu, Feb 20, 2025, 11:06 AM 5 min read

RFIX is built for investors seeking to profit from falling long-term interest rates by utilizing a proprietary approach which functions similarly to a long-term call option on U.S. Treasury bonds. The fund’s design also maximizes positive convexity and minimizes time decay, providing investors with a significant hedge against market stress scenarios where Treasury yields tend to decline. RFIX, launched in December 2024, provides exposure that is akin to a mirror image of the Simplify Interest Rate Hedge ETF (PFIX), which seeks to hedge interest rate movements from rising long-term rates.

"We’ve been pleased with the response that RFIX has received since we brought it to market just a few weeks back, but we also thought ‘let’s call this fund what it is,’ so for bond bulls, this is the ETF for you," said Harley Bassman, Managing Partner at Simplify, and creator of the approach underpinning both RFIX and PFIX.

Since launching on December 10, 2024, RFIX has grown to approximately $100 million in AUM.

For more information on RFIX and the entire Simplify ETF family, visit: https://www.simplify.us/

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.

DEFINITIONS:

Convexity: A measure of how the duration of a bond changes as interest rates change. The greater the convexity of a bond, the greater that change will be for a specific interest rate shift.

IMPORTANT INFORMATION

Investors should carefully consider the investment objectives, risks, charges, and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF's prospectus or Summary 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 Fund invests in ETFs (Exchange-Traded Funds) and entails higher expenses than if invested into the underlying ETF directly. The lower the credit quality, the more volatile performance will be. When junk bonds sell off, the lowest-rated bonds are typically hit hardest known as blow up risk. Likewise, the riskiest bonds typically rise fastest in a bull market however these investments that don't have a credit rating are typically the most volatile, hard to price and the least liquid.

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's investment in fixed income securities is subject to credit risk (the debtor may default) and prepayment risk (an obligation paid early) which could cause its share price and total return to be reduced. Typically, as interest rates rise the value of bond prices will decline and the fund could lose value.

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.

TIPS Risk: TIPS are debt instruments issued by the by the United States Department of the Treasury. The principal of TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Non-Diversified Fund Risk. Because the Fund is non-diversified and may invest a greater portion of its assets in fewer issuers than a diversified fund, changes in the market value of a single portfolio holding could cause greater fluctuations in the Fund’s share price than would occur in a diversified fund. Volatility Risk. Significant short-term price movements could adversely impact the performance of the Fund. The Fund’s performance may be volatile, which means that the Fund’s performance may be subject to substantial short-term changes up or down.

Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250218525338/en/

Contacts

Media:
Rob Jesselson
rob@craftandcapital.com
Craft & Capital

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