Simplify Launches CTAP ETF, Combining 100% Exposure to Large-Cap U.S. Equities and 100% Exposure to a Systematic Managed Futures Strategy
MWN-AI** Summary
Simplify Asset Management recently launched the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP), further enhancing its "Equity PLUS" ETF lineup. This innovative fund seeks long-term capital appreciation by integrating 100% exposure to large-cap U.S. equities with a systematic managed futures strategy. The goal is to give investors a capital-efficient method to obtain access to both asset classes without the need for additional capital outlay.
CTAP utilizes a systematic long/short managed futures strategy crafted by Altis Partners, a firm with two decades of expertise in managed futures. This strategy strategically invests across global commodities and interest rates, offering a diversified investment approach. Investors achieve this exposure via a total return swap linked to the Simplify Managed Futures Strategy ETF (CTA), which has attracted over $1.1 billion in assets since its inception in early 2022.
On the equity front, CTAP provides 100% exposure to U.S. large-cap stocks through a market cap-weighted, passive approach, primarily utilizing a liquid, low-cost ETF solution. As David Berns, Co-Founder and Chief Investment Officer at Simplify, emphasizes, the fund is designed to enhance portfolio diversification while remaining capital efficient. Historically, large-cap equities and managed futures have shown low correlation, making them effective complementary investments.
CTAP presents investors with the chance to substitute a portion of their equity holdings with this new ETF, reaping the diversification benefits of managed futures without diminishing exposure to other asset classes. Simplify aims to address the evolving needs of investors and advisors through innovative strategies, positioning CTAP as a leading option for those seeking comprehensive portfolio diversification. For more details, visit Simplify's official website.
MWN-AI** Analysis
The recent launch of the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP) represents an intriguing addition to the ETF market, particularly for investors seeking a dual exposure strategy that balances growth with risk management. By combining 100% exposure to large-cap U.S. equities with a systematic managed futures strategy, CTAP offers a unique, capital-efficient means to diversify investment portfolios.
One of the standout features of CTAP is its structure: segregating exposure into traditional equities and managed futures allows investors to hedge against market volatility without the need for significant additional capital outlay. Historically, equities and managed futures exhibit low correlation, suggesting that incorporating managed futures could diminish overall portfolio risk while maintaining growth potential.
For investors already familiar with ETFs, CTAP delivers a straightforward approach to tapping into both traditional stock market performance and alternative investment strategies. Given that managed futures, facilitated through a total return swap, can thrive during periods of market corrections—when equity markets might struggle—CTAP could serve as a valuable tool for risk mitigation.
However, potential investors should weigh the associated risks, including leverage risk due to the nature of futures contracts and the volatility inherent in commodities and currency markets. It's also crucial to comprehend the implications of investing in a non-diversified fund, which can lead to greater price fluctuations tied to single holdings.
In conclusion, CTAP presents a timely opportunity for investors aiming to enhance diversification in a balanced manner. As markets navigate uncertain economic landscapes, strategies like CTAP that combine equity growth with risk management will likely become increasingly attractive. Investors should assess their overall risk tolerance and investment objectives before incorporating CTAP into their portfolios.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
New fund further augments firm’s lineup of “Equity PLUS” ETFs and joins the $1.1 billion CTA ETF in delivering managed futures exposure
Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP) .
This new fund seeks long-term capital appreciation by combining 100% exposure to large cap U.S. equities with 100% exposure to a systematic managed futures strategy, providing a capital-efficient means for investors to gain exposure to each asset without requiring additional capital outlay.
CTAP offers 100% exposure to a systematic long/short managed futures strategy designed by Altis Partners, which has 20 years of experience in the category. The strategy is designed to invest across global commodities and interest rates. The exposure in CTAP is obtained via a total return swap based on the underlying performance of the Simplify Managed Futures Strategy ETF (CTA), designed for absolute return and portfolio diversification. CTA, which has been live since early 2022, has gathered more than $1.1 billion in assets.
On the equity side, CTAP delivers 100% exposure to U.S. large-caps via a market cap-weighted, passive exposure to stocks, obtained primarily via a low-cost, liquid ETF.
“We are very excited to be launching CTAP, which we designed with two key goals in mind: delivering portfolio diversification and doing so in a highly capital-efficient manner,” said David Berns, Co-Founder and Chief Investment Officer at Simplify. “Historically, stocks and managed futures have exhibited a low correlation with each other, making them effective partners in a two-strategy combination. An investor that substitutes a portion of their equity portfolio with CTAP can then gain the diversification benefits of managed futures without reducing their exposure to other asset classes and without having to make additional capital outlays. It’s an approach we’re very excited to discuss with the marketplace.”
For more on the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP), visit https://www.simplify.us/etfs/ctap-simplify-us-equity-plus-managed-futures-strategy-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
Correlation: A statistic that measures the degree to which two variables move in relation to each other.
Long or Short Positions: A long position involves buying a financial asset with the expectation that its price will rise, generating a profit if the asset’s value increases above the purchase price. Conversely, a short position involves selling an asset you do not own, usually borrowed, expecting its price to fall so it can be repurchased at a lower price for a profit. Both terms represent opposite investment strategies based on anticipated price movements.
Managed Futures: An investment where a portfolio of futures contracts is actively managed by professionals. Managed futures are considered an alternative investment and are often used by funds and institutional investors to provide both portfolio and market diversification.
Total Return Swap: A derivative contract in which one party (the total return payer) transfers the total economic performance of an underlying asset to another party (the total return receiver).
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.
Equity Securities Risk. The net asset value of the Fund will fluctuate based on changes in the value of the equity securities held by the Fund. Total Return Swap Risk. Leverage inherent in total return swaps will tend to magnify the Fund’s losses if the reference asset or assets declines in price. Non-Diversified Fund Risk. Because 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.
©2025 Simplify ETFs. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251209397888/en/
Media Contact:
Rob Jesselson
Craft & Capital
rob@craftandcapital.com
FAQ**
What unique investment strategy does the Simplify US Equity PLUS Managed Futures Strategy ETF CTAP employ to achieve long-term capital appreciation, and how does it integrate both large-cap U.S. equities and managed futures?
Considering the low correlation historically observed between equities and managed futures, how does the Simplify US Equity PLUS Managed Futures Strategy ETF CTAP enhance portfolio diversification for investors?
What are the potential risks associated with the Simplify US Equity PLUS Managed Futures Strategy ETF CTAP, particularly related to its use of total return swaps and futures contracts?
How does the experience of Altis Partners in managing futures strategies contribute to the effectiveness of the Simplify US Equity PLUS Managed Futures Strategy ETF CTAP in achieving its investment objectives?
**MWN-AI FAQ is based on asking OpenAI questions about Simplify Managed Futures Strategy ETF (NYSE: CTA).
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