Simplify Asset Management Launches Gold and US Small-Cap ETFs with Enhanced Income

Simplify Asset Management has launched two new ETFs that provide exposure to gold and US small-cap equities while enhancing income through option overlay strategies. The Simplify Gold Strategy PLUS Income ETF and Simplify US Small Cap PLUS Income ETF are listed on NYSE Arca with expense ratios of 0.50% and 0.55%, respectively. The funds are designed to meet investor demand for diversified growth opportunities and consistent monthly income, with the goal of providing attractive total returns and income within designated risk parameters.

Simplify Asset Management, a leading asset management firm known for its innovative ETF solutions, has recently launched two new exchange-traded funds (ETFs) designed to provide investors with diversified growth opportunities and consistent monthly income. The Simplify Gold Strategy PLUS Income ETF (YGLD) and Simplify US Small Cap PLUS Income ETF (SCY) are now listed on NYSE Arca [1].

YGLD, the first fund, offers an alternative approach to gold investing. With a net expense ratio of 0.50%, this fund aims to provide income and capital gains through 150% leveraged exposure to gold. This exposure is achieved through the use of futures contracts, allowing investors to gain significant exposure to the precious metal without the need to purchase physical gold. Moreover, YGLD features an options overlay that sells short-term put spreads on a variety of ETFs or indexes, helping to bolster monthly income [1].

As the economy braces for potential inflation next year, gold has emerged as a popular hedge against such volatility. With YGLD, investors can now mitigate inflationary risks while generating a monthly income stream. Simplify currently offers more than 30 ETFs listed in the US, with over $6 billion in assets under management [2].

The second fund, SCY, focuses on US small-caps. With a net expense ratio of 0.55%, this fund aims to provide 100% exposure to US small-caps through investment in small-cap ETFs. Given the ongoing rate-cutting cycle from the Federal Reserve, building up small-cap exposure heading into the new year can be a strategic move. Similar to YGLD, SCY features an options overlay to generate monthly income. However, unlike many other small-cap ETFs on the market, SCY's options strategy is not subject to a cap on upside gains, allowing investors to potentially benefit from the full potential of small-cap growth [1].

David Berns, Chief Investment Officer and Co-Founder of Simplify, commented on the launch of these new ETFs, stating, "At Simplify, one of our core missions is designing tools that allow investors and advisors to build the most capital efficient portfolios possible. Both gold and small-cap equities have a role to play in a diversified portfolio, and now, through these new ETFs, they can play that role while simultaneously providing an enhanced income stream. We're very excited to be bringing these funds to market at a time when the search for enhanced yield has perhaps never been more front and center."

For more information on these new ETFs and Simplify Asset Management, please visit VettaFi.com | ETF Trends.

References:
[1] ETFdb.com. (2024, December 3). Simplify Debuts Two New Active Income ETFS. https://etfdb.com/news/2024/12/03/simplify-debuts-two-new-active-income-etfs/
[2] Simplify.us. (2024, April 16). Simplify Launches Two ETFS Focused on Capturing Opportunities Found in Companies with High Levels of Intangible Capital. https://www.simplify.us/news-media/simplify-launches-two-etfs-focused-capturing-opportunities-found-companies-high-levels