Summary:
- Simplify Asset Management introduces two ETFs: SBAR and XV, focused on generating monthly income.
- SBAR offers monthly income through a laddered portfolio of 30-barrier put options.
- XV targets a 15% annualized distribution rate, paid monthly.
Simplify Asset Management has expanded its suite of income-oriented Exchange Traded Funds (ETFs) with the launch of the Simplify Barrier Income ETF (SBAR, Financial) and the Simplify Target 15 Distribution ETF (XV). Both funds aim to provide unique sources of monthly income by selling barrier put options based on the performance of three equity index ETFs representing US large cap, small cap, and growth stocks.
The Simplify Barrier Income ETF (SBAR, Financial) is engineered to offer a distinct source of monthly income by employing a laddered portfolio of 30-barrier put options. This strategy allows investors to potentially achieve higher income levels than traditional fixed income products, while maintaining defined downside risk due to the 30-barrier level.
Simplify's Target 15 Distribution ETF (XV) is designed to provide investors with a 15% annualized distribution rate, disbursed monthly. The fund achieves this target through a continuously adjusted barrier strategy, ensuring the barriers are at levels that support the 15% distribution objective.
Both SBAR and XV present a differentiated approach compared to conventional fixed income or volatility selling strategies, by capturing equity volatility premia and offering defined risk parameters. This allows investors to make informed decisions based on quantifiable risk levels, potentially complementing traditional equity allocations.
David Berns, Chief Investment Officer and Co-Founder of Simplify, emphasized the importance of these offerings, stating, "Our investors are continually seeking diversified sources of income. We are very excited to address this need with today’s launch of SBAR and XV as we continue our efforts to offer products designed to address the most pressing concerns in building today’s modern portfolios."
For more information on the Simplify Barrier Income ETF (SBAR, Financial) and the Simplify Target 15 Distribution ETF (XV), visit www.simplify.us.
