Simplify Asset Management Launches the Simplify DBi CTA Managed Futures Index ETF (SDMF), Expanding Its Managed Futures Lineup with a Rules-Based, Index-Driven Strategy

NEW YORK – Simplify Asset Management Inc. ("Simplify"), a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify DBi CTA Managed Futures Index ETF (SDMF), a new fund designed to provide investors with efficient, liquid access to the diversification benefits of managed futures through a rules-based index strategy.

SDMF seeks to closely track the DBi CTA Managed Futures Index, which is designed to replicate the performance of a basket of the largest managed futures hedge funds prior to the deduction of their estimated average fees and expenses. The index employs a systematic replication framework developed by DBi, a pioneer in factor models used to capture the return drivers of the managed futures and CTA universe.

On a weekly basis, the DBi CTA Managed Futures Index constructs a rules-based portfolio of ten highly liquid futures contracts across interest rates, currencies, equities, and commodities. The strategy takes both long and short positions, seeking to reflect the major themes of the CTA industry.

SDMF primarily gains exposure to the index through total return swaps, an approach that may improve capital efficiency and potentially enhance tax efficiency relative to traditional managed futures structures. The fund may also invest directly in futures contracts when appropriate.

“Managed futures have historically exhibited low correlations to both stocks and bonds, making them a potentially powerful diversifier within traditional portfolios,” said David Berns, Chief Investment Officer and Co-Founder of Simplify. “While our existing managed futures ETFs deliver actively managed exposure, SDMF represents a complementary solution. This index-based structure gives investors a transparent, systematic way to access the major themes driving the CTA industry, all within an efficient ETF wrapper.”

SDMF joins Simplify’s existing managed futures lineup, including the Simplify Managed Futures Strategy ETF (CTA) and the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP), further expanding the firm’s suite of systematic, liquid alternative ETFs designed to help investors navigate a wide range of market environments.

“Managed futures are not a one-size-fits-all allocation,” added Berns. “CTA, CTAP, and now SDMF each offer a distinct approach to managed futures investing, giving investors a wide range of strategies to help manage risk, improve diversification, and seek opportunities for differentiated returns regardless of market conditions.”

More information on Simplify DBi CTA Managed Futures Index ETF (SDMF).

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.