Simplify Asset Management Adds to Its Options-Focused ETF Offerings with The Launch of The Simplify Hedged Equity ETF (HEQT)
Fund is fully invested in the S&P 500 with simultaneous exposure to a series of put-spread collars designed to help reduce volatility
November 02, 2021
HEQT seeks capital appreciation by fully investing in a low-cost S&P 500 ETF while simultaneously investing in a series of put-spread collars designed to help reduce volatility. By deploying a ladder of collars that expire over three sequential months, the fund seeks to create a hedged equity approach with more robust opportunities for improving rebalancing luck. Each collar consists of an approximately 5% OTM to 20% Out of the Money (OTM) put-spread, funded by selling a call. HEQT is the first equity ETF to utilize this laddered approach to put-spread collars.
“Many investors struggle to stay the course with their equity investments due to volatility, but by creating a lower volatility equity exposure, those who are more risk averse can stay invested and improve their opportunities to participate in market upside,” said David Berns, Ph.D., CIO and Co-Founder with Simplify. “At the same time, with bond yields near all-time lows, investors are searching for alternatives to traditional low vol investments. The possibility of reduced volatility offered by HEQT creates a powerful alternative for investors, and we’re very pleased to be bringing this fund to market.”
HEQT is the latest addition to a Simplify ETF family that recently crossed the $825 million mark in assets, as of October 26th. Among the innovative and first-to-market ETF solutions designed and launched by Simplify in recent months include funds focused on interest rate hedging (PFIX), volatility income (SVOL) and equity plus bitcoin exposure, via GBTC (SPBC). Last month, Simplify also unveiled the Simplify Health Care ETF (PINK), an actively managed ETF focused on leading companies in biotech and healthcare which is also the first ETF committed to donating all of its net profits from managing the fund to Susan G. Komen®, the world’s leading breast cancer organization.
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.