SPD Profile
The Simplify US Equity PLUS Downside Convexity ETF is a unique investment vehicle that combines equity exposure with an innovative downside protection strategy. The fund's investment approach involves allocating a significant portion of its assets to U.S. equity securities while also implementing a downside convexity option overlay. This strategy is designed to provide both growth potential and protection against significant market declines.
Under normal market conditions, the fund invests at least 80% of its net assets, including any borrowed funds used for investment purposes, in equity securities of U.S. companies. This typically involves purchasing shares of U.S. companies directly or through exchange-traded funds (ETFs) that track the broader U.S. equity market. The focus is on capturing the growth potential of U.S. equities while leveraging the diversification and liquidity advantages offered by ETFs.
In addition to its core equity investments, the fund employs a downside convexity option overlay strategy. This involves the use of options contracts to protect against significant declines in the value of the fund’s equity holdings. The downside convexity strategy aims to mitigate losses during market downturns while allowing the fund to participate in market gains. This sophisticated approach helps balance the risks and rewards associated with equity investing.
The Simplify US Equity PLUS Downside Convexity ETF is designed for investors seeking a combination of equity growth and enhanced downside protection. By investing in a diversified portfolio of U.S. equities and employing a strategic options overlay, the fund aims to offer a more resilient investment option in volatile market conditions. This strategy aligns with the needs of investors who are looking for growth potential while managing the risks associated with equity market fluctuations.
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