Alternative Investments: As [60:40] Crumbles, Simplify Launches Macro Strategy ETF
The new Macro Strategy ETF is a modern take on the balanced portfolio.
Simplify Asset Management has launched the Simplify Macro Strategy ETF (NYSEARCA: FIG) offering it to investors as a total portfolio solution through exposure to a diversified set of risk drivers. By utilizing a combination of equity futures, put options, and call options, the new ETF aims to provide core equity exposure that is hedged and positively convex. (BusinessWire)
Simplify Macro Strategy ETF (NYSEARCA: FIG)
According to the fund manager, FIG is the latest addition to its diverse lineup of unique and highly differentiated ETFs, which provide investors with innovative solutions to navigate today’s challenging market environment, particularly after the demise of the [60:40] portfolio allocation system.
“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,” said Michael Green, CFA, Portfolio Manager and Chief Strategist with Simplify. “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.”
The ETF will therefore 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.
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.
The fund has a gross expense ratio of 0.75%.
Image Credit: Picpedia.org
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