Simplify Asset Management Adds Two New Income-Focused ETFs

Simplify Asset Management, an active manager with $1.6 billion in exchange-traded funds, launched the Simplify Stable Income ETF (BUCK) and Simplify Enhanced Income ETF (HIGH).

BUCK, the firm’s first cash alternative ETF, will use an options writing strategy to increase yields on cash. As with BUCK, HIGH, an enhanced income fund, will use the firm’s sophisticated options algorithm to focus on delivering significant income with low correlation to traditional credit and duration exposure.

“With BUCK and HIGH, there is an equal focus on income generation and risk management, providing what we believe will be appealing alternatives to cash and high yield bonds, respectively, with the opportunities for boosted yields while managing tail risk,” said Paul Kim, CFA, CEO and Co-Founder of Simplify.

BUCK and HIGH join a Simplify ETF lineup that includes such yield- and fixed income-focused alternatives as the Simplify Interest Rate Hedge ETF (PFIX), the Simplify Risk Parity Treasury ETF (TYA), and the Simplify High Yield PLUS Credit Hedge ETF (CDX).

According to Morningstar, 60% of new ETFs that have launched over the past two years have been actively managed, while about one-third, or 934, of all ETFs are actively managed.

HIGH and BUCK will be listed on the NYSE Arca and have expense ratios of 0.51% and 0.36%, respectively.