Simplify US Equity PLUS Downside Convexity ETF company info

What does Simplify US Equity PLUS Downside Convexity ETF do?
Simplify US Equity PLUS Downside Convexity ETF (NYSE:SPD) focuses on providing investors with a tailored investment approach aiming to safeguard against market downturns while still offering the potential for growth. It attempts to achieve this through a unique strategy that combines equity investments with options strategies to introduce an element of downside convexity, aiming to protect against steep market declines. This ETF targets those looking for exposure to the equity markets but are concerned about significant losses during turbulent times. The primary objective is to offer a more stable investment experience, balancing the pursuit of gains with the management of risks. Through its operations, Simplify US Equity PLUS Downside Convexity ETF seeks to redefine how investors approach the balance between growth and safety in their portfolios.
Simplify US Equity PLUS Downside Convexity ETF company media
Company Snapshot

Is Simplify US Equity PLUS Downside Convexity ETF a public or private company?

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Ownership
Public

How many people does Simplify US Equity PLUS Downside Convexity ETF employ?

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Employees
57

What sector is Simplify US Equity PLUS Downside Convexity ETF in?

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Sector
ETF

Where is the head office for Simplify US Equity PLUS Downside Convexity ETF?

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Head Office
New York, United States

What year was Simplify US Equity PLUS Downside Convexity ETF founded?

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Year Founded
2020
What does Simplify US Equity PLUS Downside Convexity ETF specialise in?
/Equity Investment /Downside Protection /Asset Management /Risk Management /Financial Services /Investment Strategy

What are the products and/or services of Simplify US Equity PLUS Downside Convexity ETF?

Overview of Simplify US Equity PLUS Downside Convexity ETF offerings
US Large-Cap Equity Exposure: SPD provides core exposure to the U.S. large-cap market through an investment in a low-cost S&P 500 Index ETF. This offers a foundation of broad market participation.
Options Overlay for Downside Protection: The key feature of SPD is its use of an options overlay strategy. This strategy involves selling put options on the underlying S&P 500 ETF holding. Put options give the buyer the right, but not the obligation, to sell the stock at a certain price (strike price) by a certain time (expiration date). By selling these puts, SPD collects premiums upfront, which can help offset potential losses in a declining market.
Potential for Enhanced Returns: During periods of flat or slightly positive market movement, the income generated from selling puts can boost the overall return of SPD compared to a plain S&P 500 ETF.
Defined Risk Profile: While the options overlay offers potential downside protection, it's important to understand that it doesn't guarantee complete protection against losses. The maximum potential loss in SPD is still limited to the decline in the value of the underlying S&P 500 ETF holding.
Transparent Options Strategy: The specific options contracts used in the overlay strategy of SPD are typically disclosed by the fund. This allows investors to understand the risk profile and potential benefits of the strategy.
Low Expense Ratio: SPD strives to be cost-effective by using a low-cost S&P 500 ETF as its core holding and aiming for an efficient options overlay strategy. You can find the expense ratio on the Simplify ETFs website or other financial websites.