Simplify Introduces Chinese Commodities Strategy No K-1 ETF (CCOM), Offering Access to China-Based Commodity Markets Through a Systematic Long/Short Approach
MWN-AI** Summary
Simplify Asset Management has launched the Simplify Chinese Commodities Strategy No K-1 ETF (CCOM), allowing investors access to China's prominent commodity markets without facing K-1 tax complications. The ETF is designed to provide diversified exposure to over 30 commodities traded on major Chinese exchanges like Shanghai, Dalian, and Zhengzhou, employing a systematic long/short managed futures strategy developed by Altis Partners. This approach aims for long-term capital appreciation through investments in commodity-linked swaps and futures.
David Berns, Co-Founder and Chief Investment Officer at Simplify, emphasized the significance of the Chinese commodity market, noting that it is one of the largest globally but often inaccessible to U.S. investors. CCOM aims to diversify portfolios that heavily lean towards U.S.-centric commodities by offering alternative exposures that may behave differently from traditional benchmarks, potentially enhancing portfolio returns and sensitivity to inflation.
The fund utilizes a managed futures strategy incorporating a primary price trend model and a secondary fundamental reversion model, aiming for balance during adverse market conditions. It also adapts to market dynamics, such as contango and backwardation, to enhance performance during varied futures market environments.
CCOM joins Simplify's existing lineup of commodity-focused ETFs, which includes the Simplify Commodities Strategy No K-1 ETF (HARD). This innovative product provides a practical alternative for investors seeking diversified commodity exposure beyond traditional options. For further information on CCOM, one can visit the Simplify website.
MWN-AI** Analysis
The launch of the Simplify Chinese Commodities Strategy No K-1 ETF (CCOM) offers a promising avenue for investors seeking diversification within commodities. By providing access to commodity contracts in China, which are typically unavailable to U.S. investors, CCOM allows for expansion beyond U.S.-centric holdings. This is particularly pertinent in an economic landscape where traditional investment avenues may exhibit overexposure to domestic markets.
CCOM employs a systematic long/short strategy that not only captures upward price trends but also integrates a fundamental reversion approach. This balanced mechanism is crucial, especially in the unpredictable commodity markets where volatility can significantly impact returns. Additionally, the fund's dynamic management of futures curve positioning addresses potential market conditions such as contango and backwardation, providing investors with more controlled exposure to these risks.
Investors should note that China's commodity market is among the largest globally, with contracts that can behave differently from Western benchmarks. This divergence can enhance portfolio performance, especially in times of inflation when commodities typically act as a hedge. The absence of K-1 tax complexities further simplifies processes for investors, making CCOM an appealing option for those wary of intricate tax implications often associated with futures trading.
However, caution is warranted. The fund remains subject to market and credit risks, particularly given the unique volatility associated with emerging markets like China. Additionally, the non-diversified nature of CCOM means that fluctuations in a single commodity or issuer could precipitate significant price volatility.
In conclusion, investors looking to enrich their commodity exposure should consider the potential that CCOM presents, balancing the prospect of diversification and inflation sensitivity against the inherent risks of emerging market investments. As always, due diligence and alignment with individual investment strategies are critical before committing capital.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
New ETF provides access to commodities contracts not available in the U.S., providing key means of diversifying a U.S.-centric commodities allocation
Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify Chinese Commodities Strategy No K-1 ETF (CCOM) , a new fund designed to provide investors with diversified, long/short exposure to commodity futures traded on major Chinese exchanges, without the complexities of a Schedule K-1.
CCOM is built on a systematic long/short managed futures strategy designed by the experts at Altis Partners, seeking long-term capital appreciation by investing in commodity-linked swaps and futures referencing more than 30 markets traded on the Shanghai, Dalian, and Zhengzhou commodity exchanges. By focusing on those futures traded on major Chinese commodity futures exchanges, CCOM aims to provide investors with a key diversifier for commodities portfolios that tilt too heavily towards U.S.-centric exposures.
“China represents one of the largest and most influential commodity markets in the world, yet many of its future contracts are inaccessible to U.S. investors,” said David Berns, Co-Founder and Chief Investment Officer at Simplify. “CCOM gives investors access to a distinct set of commodity exposures that can behave differently from traditional U.S.-based commodity benchmarks, while offering the potential benefits of diversification and inflation sensitivity.”
The fund’s long/short managed futures approach employs a primary model based on price trends across multiple time periods and a secondary fundamental reversion model designed to help balance the trend following model and assist during periods when trend following struggles. The strategy also dynamically manages futures curve positioning to account for contango and backwardation environments.
“From a portfolio construction standpoint, we see this strategy as a way to broaden commodity exposure beyond traditional benchmarks,” added Berns. “The ability to go both long and short across a wide range of China-based contracts, combined with a no K-1 structure, makes CCOM a practical option for investors seeking differentiated sources of return.”
CCOM expands Simplify’s lineup of commodity-focused ETFs, joining the Simplify Commodities Strategy No-K1 ETF (HARD) . HARD applies the same long/short managed futures strategy with a focus on global commodities.
For more information on the Simplify Chinese Commodities Strategy No K-1 ETF (CCOM), please visit https://www.simplify.us/etfs/ccom-simplify-chinese-commodities-strategy-no-k1-etf .
ABOUT SIMPLIFY ASSET MANAGEMENT INC
Simplify Asset Management Inc. is a Registered Investment Adviser founded in 2020 to help advisors tackle the most pressing portfolio challenges with an innovative set of options-based strategies. By accounting for real-world investor needs and market behavior, along with the non-linear power of options, our strategies allow for the tailored portfolio outcomes for which clients are looking. For more information, visit www.simplify.us .
DEFINITIONS
Contango: A situation where the futures price of an asset is higher than the spot price. This results in an upward-sloping forward curve.
IMPORTANT INFORMATION:
Investors should carefully consider the investment objectives, risks, charges, and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF's prospectus or Summary prospectus containing this and other important information, please call (855) 772-8488, or visit SimplifyETFs.com . Please read the prospectus carefully before you invest.
An investment in the fund involves risk, including possible loss of principal.
The fund is actively-managed and is subject to the risk that the strategy may not produce the intended results. The fund will also rely on the Futures Adviser’s judgments about the value and potential appreciation of particular securities which if assessed incorrectly could negatively affect the Fund.
The Fund’s use of futures may involve different or greater risks than investing directly in securities and the contract may not correlate perfectly with the underlying asset. These risks include leverage risk which means a small percentage of assets invested in futures can have a disproportionately large impact on the Fund. This risk could cause the Fund to lose more than the principal amount invested. Futures contracts may become mispriced or improperly valued when compared to the adviser’s expectation and may not produce the desired investment results. The Fund’s exposure to futures contracts is subject to risks related to rolling. Extended periods of contango or backwardation can cause significant losses for the Fund. Any short sales of the futures contracts by the fund theoretically involves unlimited loss potential since the market price of securities sold short may continuously increase.
Investments linked to commodity or currency futures contracts including exposure to non-U.S. currencies can be highly volatile affected by market movements, changes in interest rates or factors affecting a particular industry or commodity. Changes in currency exchange rates can be unpredictable or change quickly which will affect the value of the Fund.
Repurchase Agreement Risk : The Fund's investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements.
China Risk : The Chinese economy is generally considered an emerging market and can be significantly affected by economic and political conditions in China and may demonstrate significantly higher volatility than developed markets
Limited History Risk: The Fund is a new ETF and does not yet have a history of operations for investors to evaluate.
Non-Diversification Risk: the Fund is non-diversified and may invest a greater portion of its assets in fewer issuers than a diversified fund, changes in the market value of a single portfolio holding could cause greater fluctuations in the Fund’s share price than would occur in a diversified fund.
Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.
©2026 Simplify ETFs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260127167185/en/
Media Contact:
Rob Jesselson
Craft & Capital
rob@craftandcapital.com
FAQ**
How does the performance of the Simplify Chinese Commodities Strategy No K-1 ETF (CCOM) compare to the Simplify Commodities Strategy No K-1 ETF (HARD) given their different focuses on U.S. and Chinese commodities markets?
What specific advantages does the Simplify Chinese Commodities Strategy No K-1 ETF (CCOM) offer over other commodity ETFs, including the Simplify Commodities Strategy No K-1 ETF (HARD), in terms of diversification and volatility management?
In what ways does the systematic long/short managed futures strategy of the Simplify Chinese Commodities Strategy No K-1 ETF (CCOM) differ from the strategy implemented in the Simplify Commodities Strategy No K-1 ETF (HARD)?
Considering the associated risks, how does investing in the Simplify Chinese Commodities Strategy No K-1 ETF (CCOM) mitigate common pitfalls related to commodity investments compared to the approach taken by the Simplify Commodities Strategy No K-1 ETF (HARD)?
**MWN-AI FAQ is based on asking OpenAI questions about CCOM Group Inc (OTC: CCOM).
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