Liquid Alternatives: Simplify Launches Two New Income ETFs With Low Correlation To Credit And Duration Risks
While one ETF is designed to enhance yields on cash, the other delivers a significant income.
Simplify Asset Management as launched two new ETFs designed to enhance portfolio yield without significant credit or duration exposure, and which use sophisticated option-writing algorithms to enhance returns.
The Simplify Stable Income ETF (NYSEARCA: BUCK) is the firm’s first cash alternative ETF and is designed to enhance typical yields on cash via an option writing strategy with low correlation to traditional credit and duration exposures. The ETF has an expense ratio of 0.36%.
The Simplify Enhanced Income ETF (NYSEARCA: HIGH), is designed as an alternative high yield solution for investors and advisors with a focus on delivering significant income with low correlation to traditional credit and duration exposure. The ETF has an expense ratio of 0.51%. (Businesswire)
“We are very excited about today’s launch of BUCK and HIGH, two powerful new tools for investors and advisors in their search for yield,” said Paul Kim, CFA, CEO and Co-Founder with Simplify. “Traditional approaches to fixed income have been exposed this year as either under-delivering when it comes to generating income or being highly volatile in the midst of the market chaos that has marked so much of 2022.”
“With BUCK and HIGH, there is an equal focus on income generation and risk management, providing what we believe will be appealing alternatives to cash and high yield bonds, respectively, with the opportunities for boosted yields while managing tail risk.”
“Income investing is ripe for innovation, and we’re very excited to be adding BUCK and HIGH to our lineup as we continue to educate the investor marketplace about the role that options-driven approaches and other new ways of finding and delivering yield can play in portfolios,” added Kim.
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