Introducing The Simplify VettaFi Private Credit Strategy ETF (PCR), Providing Private Credit Exposure with A Built in Credit Hedge

NEW YORK – Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify VettaFi Private Credit Strategy ETF (PCR).

PCR seeks to provide investors with private credit exposure alongside a credit hedge strategy. The fund’s private credit strategy seeks to track the returns of the VettaFi Private Credit Index, which is derived from a universe of Business Developments Companies (BDCs) and publicly traded Closed End Funds (CEFs) that are primarily engaged in private credit.

Eligible potential index constituents must meet minimum market capitalization and liquidity requirements and are selected based on percentile scores for volatility and yield. 

Additionally, and key to PCR’s points of differentiation, the fund also employs a proprietary credit hedging strategy that goes long stocks with high quality metrics and short stocks that exhibit low quality metrics. This hedge has historically had a positive correlation with credit spreads with a historical positive carry.  

“Private credit has seen tremendous growth over the past decade as institutional and high net worth investors have increasingly turned to the category for yield and the powerful role it can play in diversifying a traditional 60/40 portfolio,” said David Berns, Chief Investment Officer and Co-Founder of Simplify. “However, for most investors, access to this market has typically been limited or marked by high fees, complex tax reporting, and severely limited liquidity. With PCR, we’re excited to deliver a compelling, liquid private credit solution that improves investor access and combines attractive potential income with credit hedges.”

“We believe BDCs and private credit-focused CEFs can offer more attractive yields than traditional high yield bond funds,” added Berns. “On top of that, PCR’s built-in credit hedge is designed to help manage downside risk during credit events and periods of credit spread widening.”

PCR is the latest addition to the fast-growing alternatives and income-focused segments of Simplify’s ETF lineup, which just this year has seen the firm introduce new barrier income and target distribution ETFs, a long/short currency strategy, and more. 

More information on Simplify VettaFi Private Credit Strategy ETF (PCR).

ABOUT SIMPLIFY ASSET MANAGEMENT INC 

Simplify Asset Management Inc. is a Registered Investment Adviser founded in 2020 to help advisors tackle the most pressing portfolio challenges with an innovative set of options-based strategies. By accounting for real-world investor needs and market behavior, along with the non-linear power of options, our strategies allow for the tailored portfolio outcomes for which clients are looking.