Simplify Launches ETF to Target Energy, Infrastructure Credit Markets
Simplify Asset Management announced the launch of the Simplify Kayne Anderson Energy and Infrastructure Credit ETF (KNRG), an actively managed ETF designed to deliver monthly income through investments in credit instruments of energy and infrastructure companies.
Sub-advised by Kayne Anderson, which manages $38 billion in assets, KNRG targets bonds, notes, loans, and hybrid or preferred shares, focusing on higher yield and credit quality compared to traditional high-yield bond indices.
The ETF capitalizes on sector tailwinds, including reshoring, increased public infrastructure spending, and energy-intensive digitalization, as noted by Simplify’s CIO and co-founder David Berns. Mike Schimmel, portfolio manager at Kayne Anderson, emphasized the fund’s unique income-focused credit offering, previously limited to private markets.
KNRG, with a net expense ratio of 76 basis points, joins Simplify’s ETF lineup, which includes equity and income-focused funds like the Simplify MBS ETF (MTBA) with over $1.5 billion in assets.
