Alternative Investments: Simplify Asset Management Launches Four New Disruptive Technology ETFs

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The ETFs will invest in fintech, robotic cars, clean energy along with cloud and cybersecurity, and pop culture and media.

Four new ‘bleeding edge’ ETFs are on the anvil from Simplify Asset Management. Founded by Paul Kim and David M. Berns, Ph.D., the firm’s new thematic ETFs focus on firms that have important technological or cultural edges and provide meaningful concentration to their stock price. (BusinessWire)

Investment philosophy – concentrated stock exposure

“Our thematic ETFs are designed to be an attractive alternative to watered-down thematic ETFs that try to buy every company in a particular theme. We believe in concentration for upside potential,” said Kim, chief executive officer. “We also believe that concentrated, professionally managed ETFs are an attractive alternative to single stock or options for many investors.”

Dr. Berns, chief investment officer, said: “We combine concentrated stock exposure with call options to add ‘convexity.’ But because of the inherent volatility of growth stocks, we also incorporate risk management, diversification, and downside hedges as a way to smooth out the experience of concentrated portfolios.”

Summing it up: “Identify the winners, enhance the upside, limit the downside. The full power of disruption + convexity.”

The four new ETFs focus on the themes of financial technology, robotic cars, clean energy along with cloud and cybersecurity, and pop culture and media.

Simplify Volt Fintech Disruption ETF (VFIN)

VFIN will concentrate on those few disruptive companies poised to dominate the new era of fintech and then enhance the concentrated exposures with options. Simplify deploys a sophisticated option overlay to create convexity in the portfolio to enhance the upside while improving drawdowns.

“Square (NYSE: SQ) and Lemonade (NYSE: LMND) are our lead anchors due to their ability to remove payment friction and disrupt legacy financial services,” says the factsheet.

The ETF has a gross expense ratio of 1.03%.

Simplify Volt RoboCar Disruption and Tech ETF (VCAR)

VCAR will concentrate on those few disruptive companies poised to dominate autonomous driving and then enhance the concentrated exposures with options. Simplify deploys a sophisticated option overlay to create convexity in the portfolio to enhance the upside while improving drawdowns.

“TSLA (NASDAQ: TSLA) is our winner-take-all anchor name in the robocar race due to its dominance across all relevant factors necessary to unlock autonomous driving,” says the factsheet.

The ETF has a gross expense ratio of 1.09%.

Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO)

VCLO will concentrate on those few disruptive companies poised to dominate the new era of the cloud and then enhance the concentrated exposures with options. Simplify deploys a sophisticated option overlay to create convexity in the portfolio to enhance the upside while improving drawdowns.

“Snowflake (NYSE: SNOW) and CrowdStrike (NASDAQ: CRWD) are our two anchor names in the portfolio, whose cloud-native approaches enable them to unlock the full power of the data revolution,” says the factsheet.

The ETF has a gross expense ratio of 1.02%.

Simplify Volt Pop Culture Disruption ETF (VPOP)

VPOP will concentrate on those few disruptive companies poised to dominate the new era of media and then enhance the concentrated exposures with options. Simplify deploys a sophisticated option overlay to create convexity in the portfolio to enhance the upside while improving drawdowns.

“Spotify (NYSE: SPOT) and Snap (NYSE: SNAP) are our two anchor names in the portfolio given their mission to empower content creators and disrupt legacy media,” says the factsheet.

The ETF has a gross expense ratio of 1.03%.

Related Story:  Suspected Russian Hack Attack Ignites Cybersecurity ETFs                                             

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