Simplify Expands Its Equity Plus Options ETF Suite with Launch of the Simplify Piper Sandler Us Small-Cap PLUS Income ETF (LITL)

NEW YORK – Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify Piper Sandler US Small-Cap PLUS Income ETF (LITL), an actively managed fund designed for investors aiming to balance volatility, income, and growth by combining small cap U.S. exposure with the potential for monthly income through a proprietary options overlay strategy. 

The fund’s investment universe begins with about 2000 small capitalization stocks, from which the most illiquid names are screened out. The fund’s subadvisor, Piper Sandler, then utilizes a macro-driven model to select stocks according to style factors that have historically been favorable in the current economic environment, which is constantly being monitored and assessed. 

This business cycle positioning is used to select the 3-4 factors (such as value, sales stability, earnings revisions, profitability and earnings growth) best positioned for forward performance according to the factor allocation framework. The stocks in the investable universe are then ranked using a combined weighting of the selected factors, resulting in a portfolio of about 200 stocks. 

A risk-managed options selling strategy is then overlayed on top of the equity portfolio to produce additional income by selling put spreads on a variety of underlying instruments, including equity, fixed income and commodity indices and/or ETFs. 

“We’re excited to launch this innovative ETF alongside the distinguished team at Piper Sandler,” said David Berns, CIO and Co-Founder of Simplify. “Small cap equities can enjoy periods of strong growth but have always been more sensitive to the economic cycle than large cap stocks. Piper Sandler’s unique economic overlay seeks to add value by selecting the stocks that are best positioned to succeed in the current environment, while providing investors with current income.” 

More information on Simplify Piper Sandler Us Small-Cap Plus Income ETF (LITL). 


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.