Simplify Asset Management debuted the Simplify Managed Futures Strategy ETF (CTA) on Tuesday, which intends to seek to build returns by systematically investing in futures to create an absolute return profile, which also has a low correlation to equities and can provide support in risk-off events.
Moreover, CTA only invests in US and Canadian commodities and rates while offering a 0.75% expense ratio 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-off models.
David Berns, Chief Investment Officer and Co-Founder with Simplify stated:
“With interest rates near all-time lows and equity valuations growing ever more stretched, investors are searching for sources of absolute return that can simultaneously serve as a portfolio diversifier. Managed futures have long been put forward as just such a potential solution but investors have too often been underwhelmed by typical managed futures strategies’ correlation to equities. That is something we’ve worked to solve with CTA and we’re very pleased to be adding this fund to our growing lineup of innovative ETF solutions.”
See additional information provided by Simplify Asset Management.