MTBA Profile
Simplify MBS ETF is an actively managed exchange-traded fund (ETF) with a focus on mortgage-backed securities (MBS). The fund commits at least 80% of its net assets to MBS, which includes both agency and non-agency securities. These securities are backed by residential or commercial mortgages and may also include related financial instruments such as futures contracts, forward agreements, swap contracts, or options linked to MBS. The funds investment approach is designed to provide exposure to the mortgage market through a diverse array of MBS products.
The primary investment strategy of Simplify MBS ETF involves targeting securities issued by major government-sponsored enterprises, including the Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC). By focusing on MBS issued by these entities, the fund aims to leverage the relative stability and creditworthiness associated with government-backed mortgage securities, while also capturing opportunities in the broader MBS market.
In addition to investing in traditional MBS, the fund may utilize a range of derivative instruments to enhance its exposure and manage risk. These derivatives include futures, forwards, swaps, and options, which are employed to hedge against interest rate fluctuations and other market variables. The funds active management style allows it to adapt to changing market conditions and optimize its portfolio in response to shifts in the MBS market.
Simplify MBS ETF seeks to deliver attractive risk-adjusted returns by strategically investing in mortgage-backed securities and utilizing advanced financial instruments to manage risk and enhance performance. The funds focus on high-quality, government-backed MBS combined with its use of derivatives aims to provide investors with a robust and dynamic investment vehicle within the mortgage market.
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