Simplify Announces Launch of the Simplify Short Term Treasury Futures Strategy ETF (TUA)
ETF further augments firm’s innovative fixed income suite, provides investors with capital-efficient duration exposure, yield curve opportunities from the short end of the curve.
November 15, 2022
TUA is designed with the twin goals of capital and yield curve efficiency, seeking to target the duration* of the ICE 10-Year US Treasury Index by investing in Treasuries and Treasury futures at the short end of the curve.
The fund is similar in strategy and approach to the Simplify Risk Parity Treasury ETF (TYA), which Simplify launched in September 2021; with the key difference being that TUA focuses on Treasuries and Treasury futures at the short end of the curve, rather than the intermediate, though Simplify notes that TUA can potentially create more efficient intermediate duration exposure by capitalizing on favorable roll yields at the short end of the Treasury curve.
“We’re pleased to be adding TUA to our fund lineup and see a number of key use cases, particularly in the current environment,” said David Berns, Ph.D., CIO and Co-Founder with Simplify. “Given its levered exposure to short-term Treasuries, TUA can be used to gain short duration exposure with only a fraction of the capital required by an unlevered position, significantly increasing capital efficiency. It can also be used as the building block in a variety of innovative portfolio solutions, including risk parity.”
TUA and TYA are part of Simplify’s fast-growing ETF lineup, which includes two standout 2022 performers, the Simplify Interest Rate Hedge ETF (PFIX) and the Simplify Managed Futures Strategy ETF (CTA), along with two other recent additions to the firm’s fixed income suite in the Simplify Stable Income ETF (BUCK) and Simplify Enhanced Income ETF (HIGH), both which launched on October 27th.
*Duration: A measure of the sensitivity of the price of a bond to a change in interest rates.
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. For more information, visit www.simplify.us.