Simplify Launches Two Tax-Aware ETFs to Meet Advisor Demand for Simpler, More Efficient Portfolio Tools

NEW YORK – Simplify Asset Management (“Simplify”),Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of two new ETFs: the Simplify Tax Aware Alternatives ETF (LQ) and the Simplify Tax Aware Diversified Income Strategy ETF (DINE). Both funds are designed to help investors access diversified strategies while seeking to minimize the tax drag that can impact long-term results. 

The launches reflect what Simplify is hearing from advisors and investors about growing demand for solutions that go beyond traditional stock and bond allocations without adding unnecessary complexity at tax time. 

“Investors are increasingly focused on what they keep after taxes, not just what they earn,” said David Berns, Co-Founder and Chief Investment Officer at Simplify. “With LQ and DINE, we’re giving advisors and investors tools that seek to improve after-tax outcomes without sacrificing diversification or income potential in a single, easy-to-use ETF wrapper.” 

Both LQ and DINE are built as multi-strategy ETFs, combining several of Simplify’s existing approaches into a single allocation, making it easier to incorporate alternatives and income into portfolios, while smoothing out some of the volatility and line-item risk that can come with holding multiple individual strategies. 

Rather than holding underlying positions directly, the funds gain exposure through swaps on Simplify ETFs. These swaps are structured with tenors of at least one year, making gains upon expiration eligible for long-term capital gains tax treatment. Additional tax-management techniques are also employed, with the goal of reducing the overall tax burden for investors. 

The Simplify Tax Aware Alternatives ETF (LQ) seeks long-term capital appreciation by investing in a mix of alternative strategies, including managed futures, commodities, currencies, energy infrastructure, and tail-risk hedges. By combining alternative strategies with low correlations to stocks and bonds, LQ is designed to help diversify traditional allocations and improve portfolio resilience across market environments. 

The Simplify Tax Aware Diversified Income Strategy ETF (DINE) takes a similar approach, but with a focus on income. The fund invests across a range of income-producing strategies, including enhanced core fixed income, credit-hedged high yield, option-based income, equity income, and currency-based strategies. 

A key element of the design is how the income is delivered. Rather than generating large, regular distributions, DINE aims to minimize them, giving investors more control over when they realize income, typically through selling shares. 

Like LQ, the fund uses a swaps-based structure on existing Simplify ETFs and other tax-aware tools to help reduce the overall tax impact, particularly for investors in taxable accounts. 

“We’ve designed these funds as practical tools for how people invest today,” added Berns. “Advisors are trying to balance diversification, income, and taxes, but too often, those items come with tradeoffs. With LQ and DINE, our aim is to bring those pieces together in a way that makes sense. The goal for these funds is to help investors keep more of what they earn and give them a smoother experience along the way.” 

More information on Simplify Tax Aware Alternatives ETF (LQ) and Simplify Tax Aware Diversified Income Strategy ETF (DINE). 

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.