Simplify Asset Management, a U.S.-based investment adviser, announced on Monday the launch of four exchange-traded funds (ETFs) for fintech, pop culture, robocar, cloud/cybersecurity. Founded earlier this year, Simplify was created to help advisors tackle pressing portfolio challenges with option-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.”
Speaking about the new ETFs, Paul Kim, CEO and Co-Founder of Simplify, stated:
“Increased globalization, the ubiquity of broadband, greater access to capital, and the unprecedented pace of technological disruption create ‘winner take all’ dynamics in industries. Winning firms are growing faster and being rewarded with rich valuations. Thematic ETFs have benefited from investor demand for greater exposure to the technology-driven winners and industries.”
David Berns, CIO and Co-Founder of Simplify, went on to add:
“At Simplify we are focused on first principles investing. Thematic portfolios are essentially trying to concentrate in likely winners. We try to identify firms that have important technological or cultural edges and provide meaningful concentration to their stock price. We combine concentrated stock exposure with call options to add ‘convexity.’ But because of the inherent volatility of growth stocks we also incorporate risk management, diversification and downside hedges as a way to smooth out the experience of concentrated portfolios.”