Simplify Asset Management Launches the Simplify DBi CTA Managed Futures Index ETF (SDMF), Expanding Its Managed Futures Lineup with a Rules-Based, Index-Driven Strategy
MWN-AI** Summary
Simplify Asset Management Inc. has launched the Simplify DBi CTA Managed Futures Index ETF (SDMF), adding to its roster of managed futures offerings. This new exchange-traded fund (ETF) is designed to provide investors with efficient access to managed futures through a rules-based index strategy, aiming to mitigate the risks associated with selecting individual managers. By closely tracking the DBi CTA Managed Futures Index, SDMF is engineered to replicate the performance of major managed futures hedge funds before accounting for estimated fees and expenses.
The index follows a systematic replication framework developed by DBi, entailing a weekly rebalancing of a portfolio comprising ten highly liquid futures contracts across various sectors including interest rates, currencies, equities, and commodities. This approach allows for both long and short positions to reflect current trends in the managed futures and Commodity Trading Advisors (CTA) sector. SDMF primarily attains its index exposure through total return swaps, which could enhance capital and tax efficiency compared to traditional managed futures structures.
David Berns, Chief Investment Officer and Co-Founder of Simplify, highlighted the benefits of managed futures, noting their historically low correlation with stocks and bonds, thus serving as a valuable diversification tool within traditional investment portfolios. SDMF complements existing offerings such as the Simplify Managed Futures Strategy ETF (CTA) and the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP), providing a variety of strategies to manage risk and enhance returns in fluctuating market conditions.
With this launch, Simplify continues to broaden its innovative suite of systematic, liquid alternative ETFs, catering to diverse investor needs and market scenarios. Interested parties can find more details on SDMF by visiting Simplify's official website.
MWN-AI** Analysis
The launch of the Simplify DBi CTA Managed Futures Index ETF (SDMF) offers a unique opportunity for investors seeking to diversify their portfolios amid volatile market conditions. By employing a rules-based, index-driven strategy, SDMF aims to deliver accessible, efficient exposure to managed futures while mitigating risks associated with individual manager selection.
Managed futures have a longstanding reputation for low correlation with traditional asset classes, such as equities and bonds, making them an ideal choice for enhancing portfolio diversification. This ETF tracks the DBi CTA Managed Futures Index, which replicates the performance of leading managed futures hedge funds, thus providing potential investors with a benchmark for performance without the burdens of high fees typically involved with actively managed funds.
The systematic replication framework utilized by SDMF allows for the construction of a liquid portfolio across various sectors, including interest rates, currencies, commodities, and equities. This model of taking both long and short positions recognizes prevailing market themes, ensuring that the fund remains relevant regardless of market upturns or downturns.
Investors might find the total return swap strategy employed by SDMF particularly advantageous. This approach offers improved capital efficiency and may lead to better tax outcomes compared to conventional managed futures investments. However, it’s essential to acknowledge the risks inherent to this approach, including those related to leverage, mispricing issues, and the potential for losses during extreme market conditions.
In conclusion, SDMF presents a compelling option for investors aiming to capitalize on the diversification benefits of managed futures. As part of Simplify's expanding portfolio, it offers a structured, transparent way to engage with the CTA space. Nevertheless, potential investors should conduct thorough due diligence to determine how this ETF aligns with their investment strategy and risk tolerance.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
New fund seeks to add the diversification benefits of managed futures while aiming to reduce individual manager selection risk
Simplify Asset Management Inc. ("Simplify") , a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify DBi CTA Managed Futures Index ETF (SDMF) , a new fund designed to provide investors with efficient, liquid access to the diversification benefits of managed futures through a rules-based index strategy.
SDMF seeks to closely track the DBi CTA Managed Futures Index, which is designed to replicate the performance of a basket of the largest managed futures hedge funds prior to the deduction of their estimated average fees and expenses. The index employs a systematic replication framework developed by DBi, a pioneer in factor models used to capture the return drivers of the managed futures and CTA universe.
On a weekly basis, the DBi CTA Managed Futures Index constructs a rules-based portfolio of ten highly liquid futures contracts across interest rates, currencies, equities, and commodities. The strategy takes both long and short positions, seeking to reflect the major themes of the CTA industry.
SDMF primarily gains exposure to the index through total return swaps, an approach that may improve capital efficiency and potentially enhance tax efficiency relative to traditional managed futures structures. The fund may also invest directly in futures contracts when appropriate.
“Managed futures have historically exhibited low correlations to both stocks and bonds, making them a potentially powerful diversifier within traditional portfolios,” said David Berns, Chief Investment Officer and Co-Founder of Simplify. “While our existing managed futures ETFs deliver actively managed exposure, SDMF represents a complementary solution. This index-based structure gives investors a transparent, systematic way to access the major themes driving the CTA industry, all within an efficient ETF wrapper.”
SDMF joins Simplify’s existing managed futures lineup, including the Simplify Managed Futures Strategy ETF (CTA) and the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP ) , further expanding the firm’s suite of systematic, liquid alternative ETFs designed to help investors navigate a wide range of market environments.
“Managed futures are not a one-size-fits-all allocation,” added Berns. “CTA, CTAP, and now SDMF each offer a distinct approach to managed futures investing, giving investors a wide range of strategies to help manage risk, improve diversification, and seek opportunities for differentiated returns regardless of market conditions.”
For more information on the Simplify DBi CTA MF Index ETF (SDMF ), please visit https://www.simplify.us/
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:
DBi CTA MF Index: Provides the market with a reliable daily performance benchmark of major commodity trading advisors (CTAs).
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 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.
CTA Risk: The CTAs’ judgments about the attractiveness, value and potential appreciation of particular commodity asset classes and futures may prove to be incorrect and may not produce the desired results.
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: Because the Fund is non-diversified and may invest a greater portion of its assets in fewer issuers than a diversified fund.
Passive Investment Risk: The Fund is not actively managed, and the adviser will not sell a holding due to current or projected underperformance.
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.
Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.
©2026 Simplify ETFs. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260218450304/en/
Media Contact:
Rob Jesselson
Craft & Capital
rob@craftandcapital.com
FAQ**
How does the performance of the Simplify DBi CTA Managed Futures Index ETF (SDMF) compare to that of the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP) in terms of risk and return profile?
What specific strategies does SDMF employ to mitigate the individual manager selection risk that investors encounter, particularly when compared to funds like the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP)?
Considering the management fees associated with SDMF may differ from those of the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP), how can investors assess the overall cost-effectiveness of investing in SDMF?
In what scenarios would investors benefit more from the systematic approach of SDMF versus the actively managed approach of the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP)?
**MWN-AI FAQ is based on asking OpenAI questions about Simplify Managed Futures Strategy ETF (NYSE: CTA).
NASDAQ: CTA
CTA Trading
0.92% G/L:
$30.57 Last:
60,115 Volume:
$30.63 Open:
