Simplify Asset Management on Tuesday launched the Simplify Managed Futures Strategy ETF (CTA), which aims to generate returns by systematically investing in futures contracts to create an absolute return profile, which also has a low correlation to equities and can provide support during risky events.
Additionally, CTA only invests in US and Canadian commodities and rates while offering an expense ratio of 0.75% and trades on the New York Stock Exchange.
Additionally, the fund will allocate assets across four underlying models, each with a distinct area of focus, including price trend, mean reversion, carry and risk aversion models.
David Berns, Chief Investment Officer and Co-Founder of Simplify, said:
“With interest rates near all-time lows and equity valuations increasingly stretched, investors are looking for sources of absolute return that can simultaneously serve as portfolio diversification. Managed futures have long been featured as such a potential solution, but investors have too often been disappointed by the typical correlation of managed futures strategies with equities. This is something we have been working to address with the CTA and we are very happy to add this fund to our growing range of innovative ETF solutions.
See additional information provided by Simplify Asset Management.