Simplify Launches CTAP ETF, Combining 100% Exposure to Large-Cap U.S. Equities and 100% Exposure to a Systematic Managed Futures Strategy

New fund further augments firm’s lineup of “Equity PLUS” ETFs and joins the $1.1 billion CTA ETF in delivering managed futures exposure

NEW YORK--(BUSINESS WIRE)--Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP).

This new fund seeks long-term capital appreciation by combining 100% exposure to large cap U.S. equities with 100% exposure to a systematic managed futures strategy, providing a capital-efficient means for investors to gain exposure to each asset without requiring additional capital outlay.

CTAP offers 100% exposure to a systematic long/short managed futures strategy designed by Altis Partners, which has 20 years of experience in the category. The strategy is designed to invest across global commodities and interest rates. The exposure in CTAP is obtained via a total return swap based on the underlying performance of the Simplify Managed Futures Strategy ETF (CTA), designed for absolute return and portfolio diversification. CTA, which has been live since early 2022, has gathered more than $1.1 billion in assets.

On the equity side, CTAP delivers 100% exposure to U.S. large-caps via a market cap-weighted, passive exposure to stocks, obtained primarily via a low-cost, liquid ETF.

“We are very excited to be launching CTAP, which we designed with two key goals in mind: delivering portfolio diversification and doing so in a highly capital-efficient manner,” said David Berns, Co-Founder and Chief Investment Officer at Simplify. “Historically, stocks and managed futures have exhibited a low correlation with each other, making them effective partners in a two-strategy combination. An investor that substitutes a portion of their equity portfolio with CTAP can then gain the diversification benefits of managed futures without reducing their exposure to other asset classes and without having to make additional capital outlays. It’s an approach we’re very excited to discuss with the marketplace.”

For more on the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP), visit https://www.simplify.us/etfs/ctap-simplify-us-equity-plus-managed-futures-strategy-etf.

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.

DEFINITIONS

Correlation: A statistic that measures the degree to which two variables move in relation to each other.

Long or Short Positions: A long position involves buying a financial asset with the expectation that its price will rise, generating a profit if the asset’s value increases above the purchase price. Conversely, a short position involves selling an asset you do not own, usually borrowed, expecting its price to fall so it can be repurchased at a lower price for a profit. Both terms represent opposite investment strategies based on anticipated price movements.

Managed Futures: An investment where a portfolio of futures contracts is actively managed by professionals. Managed futures are considered an alternative investment and are often used by funds and institutional investors to provide both portfolio and market diversification.

Total Return Swap: A derivative contract in which one party (the total return payer) transfers the total economic performance of an underlying asset to another party (the total return receiver).

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 [phone], 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 and is subject to the risk that the strategy may not produce the intended results. The fund will also rely on the Futures Adviser’s judgments about the value and potential appreciation of particular securities which if assessed incorrectly could negatively affect the Fund.

The Fund’s use of futures may involve different or greater risks than investing directly in securities and the contract may not correlate perfectly with the underlying asset. These risks include leverage risk which means a small percentage of assets invested in futures can have a disproportionately large impact on the Fund. This risk could cause the Fund to lose more than the principal amount invested. Futures contracts may become mispriced or improperly valued when compared to the adviser’s expectation and may not produce the desired investment results. The Fund’s exposure to futures contracts is subject to risks related to rolling. Extended periods of contango or backwardation can cause significant losses for the Fund. Any short sales of the futures contracts by the fund theoretically involves unlimited loss potential since the market price of securities sold short may continuously increase.

Investments linked to commodity or currency futures contracts including exposure to non-U.S. currencies can be highly volatile affected by market movements, changes in interest rates or factors affecting a particular industry or commodity. Changes in currency exchange rates can be unpredictable or change quickly which will affect the value of the Fund.

Equity Securities Risk. The net asset value of the Fund will fluctuate based on changes in the value of the equity securities held by the Fund. Total Return Swap Risk. Leverage inherent in total return swaps will tend to magnify the Fund’s losses if the reference asset or assets declines in price. 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.

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

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