Simplify Intermediate Term Treasury ETF (TYA)

Overview

The fund operates as an actively managed exchange-traded fund (ETF) with the primary investment objective of achieving total return that either matches or exceeds the performance of the ICE U.S. Treasury 20+ Year Index over a calendar quarter. This objective aligns with the fund's strategy to provide investors with a focused approach towards gaining exposure to long-term U.S. Treasury securities. The management of the fund emphasizes its commitment to closely monitoring the market and adjusting its investment approaches based on evolving economic conditions and interest rate environments, aiming to safeguard and grow investors' capital over time.

Products and Services

The fund offers a range of investment vehicles focused on U.S. Treasury and government securities, employing various derivatives and investment strategies to achieve its objectives:

• Futures Contracts: The fund invests in futures contracts on U.S. Treasury securities, allowing it to gain exposure to the movements in the prices of long-term government bonds without the necessity of holding the bonds themselves. This approach provides the flexibility to adjust its positions actively in response to market changes.
• Call and Put Options: By investing in call and put options on U.S. Treasury futures, the fund employs a strategy aiming to leverage potential market upswings or hedge against downtrends, respectively. These options give the fund the right, but not the obligation, to buy (call) or sell (put) a Treasury futures contract at a specified price, offering opportunities for strategic position management.
• U.S. Government Securities: The investment in bills, notes, and bonds issued by the U.S. Treasury is a cornerstone of the fund's strategy. These securities offer a direct investment into debt instruments backed by the full faith and credit of the U.S. government, considered to be among the safest investments. They provide a stable income stream through interest payments and help diversify the fund’s portfolio.
• Fixed Income ETFs: As part of its diversified investment strategy, the fund also allocates a portion of its assets to fixed income ETFs that focus on U.S. Treasuries. This allows the fund to gain broader exposure to the U.S. Treasury market across different maturities and yield profiles, enhancing its ability to achieve its investment objective while managing risk.