Simplify US Equity PLUS Downside Convexity ETF (SPD)

Overview

This investment fund focuses on capitalizing on the growth potential of U.S. companies through a strategic approach that combines equity investments with an added layer of risk management. The primary investment strategy involves a substantial allocation of the fund's assets into equity securities, particularly through exchange-traded funds (ETFs) that represent a broad cross-section of the U.S. stock market. In an effort to safeguard against market downturns and enhance portfolio stability, the fund employs a downside convexity option overlay strategy. This sophisticated tactic involves the purchase of put options on the S&P 500 Index or related ETFs, providing a potential cushion against market volatility and declines.

Products and Services

• Equity Securities of U.S. Companies:

  The cornerstone of the fund's investment strategy is its focus on equity securities of U.S. companies. By allocating at least 80% of its net assets (plus any borrowings for investment purposes) into these securities, the fund aims to capture the growth potential inherent in the U.S. market. The emphasis on investing primarily through exchange-traded funds (ETFs) allows for diversified exposure to a wide array of sectors and companies, enhancing the potential for risk-adjusted returns.

• Downside Convexity Option Overlay Strategy:

  As a method to mitigate potential losses during periods of market downturns, the fund implements a downside convexity option overlay strategy. This involves the strategic purchase of put options on the S&P 500 Index or an S&P 500 Index ETF. By having these options in place, the fund seeks to benefit from the protective features of put options, which can increase in value when the underlying index or ETF falls. This strategy is designed to provide an additional layer of security, aiming to protect the fund's investments from significant market drops and to reduce the overall portfolio volatility.