A Two-Year-Old Shop Adds Two Income ETFs
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Monday, October 31, 2022

A Two-Year-Old Shop Adds Two Income ETFs

The team at a New York City shop is rolling out a pair of actively managed income funds, both powered by proprietary, options-writing approaches.

Paul Sang Jin Kim
Simplify Asset Management Inc.
CEO, Co-Founder
On Friday, Paul Kim, CEO and co-founder of Simplify Asset Management Inc. [profile], unveiled the launch of the Simplify Enhanced Income ETF (HIGH on the NYSE Arca, Inc.) and the Simplify Stable Income ETF (BUCK). The new funds' inception date was Thursday, and as of Friday they had about $1.25 million each in AUM.

BUCK and HIGH are both series of Simplify Exchange Traded Funds. Simplify serves as the investment advisor to both new funds, and they are both PMed by the same team: Kim, chief investment officer David Berns, and managing director John Downing.

HIGH is designed as an "alternative high-yield solution." It comes with an expense ratio of 51 basis points.

The Simplify team describes BUCK as their first ever "cash-alternative ETF." It comes with an expense ratio of 36 bps.

Kim describes the new funds as "two powerful new tools for investors and advisors in their search for yield." He puts the launches in the context of many fixed income strategies' woes this year in light of ongoing market volatility.

"With BUCK and HIGH, there is an equal focus on income generation and risk management, providing what we believe will be appealing alternatives to cash and high yield bonds, respectively, with the opportunities for boosted yield while managing tail risk," Kim states.

The new funds' other service providers include: Bank of New York Mellon (BNY Mellon) as administrator, custodian, fund accountant, and transfer agent; Cohen & Company, Ltd. as independent accounting firm; Foreside Financial Services, LLC as distributor; and Thompson Hine LLP as counsel.

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