TYA Profile
The Simplify Risk Parity Treasury ETF is an actively managed exchange-traded fund designed to provide a total return that aims to match or exceed the performance of the ICE U.S. Treasury 20+ Year Index over a calendar quarter. This fund seeks to achieve its objective by focusing on long-term U.S. Treasury securities, leveraging various financial instruments to gain exposure to this specific segment of the Treasury market. The ICE U.S. Treasury 20+ Year Index includes U.S. government securities with maturities exceeding 20 years, reflecting the performance of long-term Treasury bonds.
Under normal market conditions, the fund invests at least 80% of its net assets in a range of financial instruments that include futures contracts, call options, and put options on U.S. Treasury futures. These instruments are used to gain exposure to the performance of long-term U.S. Treasury securities. Additionally, the fund invests in U.S. government securities such as Treasury bills, notes, and bonds, as well as fixed income ETFs that focus on U.S. Treasuries. This diverse investment approach is designed to closely track the performance of the targeted index while providing flexibility to adapt to market conditions.
The fund’s strategy involves managing risk through a risk parity approach, which seeks to balance risk across various assets to achieve a stable and attractive risk-adjusted return. By focusing on long-duration Treasuries and utilizing derivatives, the fund aims to benefit from changes in interest rates and bond prices, while also mitigating risk through strategic allocations. This approach allows the fund to potentially enhance returns while maintaining a focus on long-term U.S. government securities.
As an actively managed ETF, the Simplify Risk Parity Treasury ETF is designed to provide investors with targeted exposure to long-term U.S. Treasury securities, employing a range of financial instruments to achieve its investment goals. The fund’s management team actively monitors and adjusts the portfolio to align with its performance objectives, ensuring that it remains closely tied to the ICE U.S. Treasury 20+ Year Index. This focus on long-term government bonds, combined with active management, aims to offer investors both capital appreciation and income stability in their fixed income investments.
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