The Simplify Macro Strategy ETF (FIG) is managed by Simplify Asset Management Inc., offering an actively managed exchange-traded fund that focuses on creating a long bias cross-asset portfolio. This unique strategy combines investments in equity, fixed income, and alternative ETFs and derivatives, aiming to provide equity-like returns with lower risk and greater consistency. The Macro in the fund's name signifies the adviser's approach, which relies on interpreting significant economic events on a global, regional, and national scale to inform investment and trading decisions.
While the Fidelity MSCI Financials Index ETF (FIG) primarily tracks the performance of financial sector stocks, it also mirrors the dividend distribution of the underlying MSCI USA Financials Index. Dividend distributions from FIG typically occur on a quarterly basis, in alignment with the dividend policies and performances of the constituent companies within the index. As FIG primarily includes companies from the financial sector, investors looking for exposure to this industry may expect some dividend returns along with potential capital appreciation.
The Simplify Macro Strategy ETF is designed to create a long bias cross-asset portfolio by actively investing in equity, fixed income, and alternative ETFs and derivatives. This approach aims to deliver equity-like returns with reduced risk and more consistent performance. The ETF's name reflects its investment and trading strategy, which is rooted in the economic interpretation of significant global, regional, and national economic events. The fund primarily allocates its assets to equity, fixed income, and alternative ETFs managed by the adviser. Fixed income ETFs encompass a broad range of debt securities, including those with below-investment-grade credit ratings. Equity ETFs focus on U.S. company stocks, while Alternative ETFs can include various assets such as commodity and foreign exchange futures contracts, VIX short-term futures, high-yield-related fixed income, and high-income generating ETFs. Additionally, the fund employs a derivatives overlay strategy, allowing it to invest up to 20% of its portfolio in derivatives. These derivatives consist of equity, treasury, commodity, and currency futures, as well as exchange-traded and over-the-counter put and call options. The strategic use of options provides the ETF with the flexibility to potentially outperform the market in rising conditions and limit losses in declining markets. To further execute its alternative strategy and derivatives overlay, the fund invests in a wholly-owned subsidiary, organized under the laws of the Cayman Islands. This subsidiary provides exposure to alternative ETFs and commodity-linked derivatives, enhancing the fund's overall strategy and performance potential. While the fund aims to enhance returns through its use of derivatives, it's important to note that there are no guarantees of success, and performance may vary based on market conditions and the adviser's assessment of relative value and risk.
The correlation aspect of the Simplify Macro Strategy ETF (FIG) plays a pivotal role in understanding its performance in relation to various asset classes within its portfolio. Given its objective of creating a long bias cross-asset portfolio through investments in equity, fixed income, and alternative ETFs and derivatives, FIG's correlation patterns are essential for investors seeking equity-like returns with lower risk. While specific correlations may vary, the fund's correlation with equity markets, fixed income sectors, and alternative assets is of paramount interest to investors. ETF Insider is an invaluable tool for exploring FIG's correlations with different asset classes. Through its web app, investors can gain access to comprehensive data and insights, helping them analyze FIG's correlation dynamics in detail. The tool's visualization features allow for a deeper understanding of how FIG aligns with various investment options, aiding in portfolio diversification and strategic decision-making. By revealing correlations and overlaps, ETF Insider empowers investors to make informed choices regarding FIG and other U.S. ETFs in their portfolios.
The Simplify Macro Strategy ETF focuses on creating a risk-balanced portfolio by actively investing in equity, fixed income, and alternative ETFs and derivatives. Its macro strategy is based on economic interpretations of significant global events, and it primarily invests in equity ETFs of U.S. companies, fixed income ETFs, and alternative ETFs involving various assets, including commodities and foreign exchange futures contracts. Additionally, the fund may use derivatives, such as options and total return swaps, to partially hedge against market declines or enhance returns. Simplify Macro Strategy ETF aims to offer equity-like returns with lower risk, making it an interesting option for investors seeking a balanced approach to their investments within the macroeconomic context.
The Simplify Macro Strategy ETF (FIG) offers a unique exposure strategy, aiming to create a long bias cross-asset portfolio through active management. This ETF invests in a diversified mix of equity, fixed income, and alternative ETFs and derivatives. The Macro in its name signifies its investment and trading approach based on interpreting large-scale economic events on national, regional, and global levels.Equity, Fixed Income, and Alternative StrategyFIG primarily allocates its investments into equity, fixed income, and alternative ETFs, all managed by the advisor. Fixed income ETFs encompass a range of debt securities, including those with credit quality below investment grade. Equity ETFs focus on U.S. company equities, while Alternative ETFs cover a variety of assets, such as commodities, foreign exchange futures contracts, VIX short-term futures, and high-yield generating ETFs.Derivatives OverlayThis ETF may dedicate up to 20% of its portfolio to derivatives, which includes equity, treasury, commodity, and currency futures, as well as exchange-traded and over-the-counter put and call options. These derivatives provide strategic exposure designed to partially hedge against market declines. The options strategy involves buying and selling call and put options based on various factors like cost, strike price, and maturity. The aim is to enhance returns when the market rises and mitigate losses during market downturns.Utilizing a Wholly-Owned SubsidiaryFIG executes a portion of its alternative and derivatives overlay strategy indirectly through a wholly-owned subsidiary organized under the laws of the Cayman Islands. This subsidiary is advised by Simplify Asset Management Inc., the fund's investment advisor. It provides the fund with exposure to Alternative ETFs and commodity-linked derivatives, aligning with relevant tax regulations.For a deeper understanding of FIG's exposure and its correlation with various assets, investors can use the ETF Insider web app, which offers comprehensive data and visualization tools to uncover insights and make informed investment decisions.
ETF Insider is a data-driven portfolio analytics and optimization platform that introduces a more efficient and practical way to visualize, analyze and optimize portfolios.
Rather than focusing on the surface-level attributes of ETFs and Mutual Funds, ETF Insider goes deeper by examining the underlying holdings of exchange traded products.
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This innovative perspective combined with modern data visualization and modeling tools, provides an entirely new approach to portfolio optimization that can quickly expose both portfolio inefficiencies and opportunities.
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