FOXY Is designed to provide returns independent of movements in stocks and bonds, applies a “carry” strategy to Emerging Market currencies and a mean reversion strategy to G10 currencies

Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today introduced the Simplify Currency Strategy ETF (FOXY), an actively managed fund that takes long and short positions in foreign currencies, providing investors and advisors with a powerful portfolio building block designed to provide returns with little correlation to equities or bonds.

FOXY’s approach is built around two primary strategies.

First is an Emerging Markets carry strategy that utilizes eight Emerging Market currency pairs, with each currency paired against the U.S. dollar. The four currencies with the highest interest rates will be held “long,” while the four currencies with the lowest interest rates will be shorted. The differences in yield, or “carry,” combined with the changes in the currency levels become the fund’s profit.

The second strategy focuses on G10 currencies, utilizing six different currency pairs. The three currencies with the strongest yield momentum increase will be held “long” while the three currencies with the lowest yield momentum increase will be shorted. This strategy aims to benefit from the tendency for movements in G10 currencies to “mean-revert,” i.e. the tendency for these currencies to revert back to prior levels over time. The lower correlations between the G10 and Emerging Market strategies also serve to reduce risk.

“Historically, currency-focused ETFs have been passive vehicles and have largely focused on the movements of a single currency in relation to the U.S. dollar. But sophisticated institutions, hedge funds, and other large investors have long known the powerful role that an active carry strategy can play in managing currency exposure and tapping into sources for uncorrelated returns,” said David Berns, CIO and Co-Founder of Simplify. “With FOXY, investors and advisors now have a single-ticker solution to implement currency carry trades in their own portfolios and they can do so via the liquid, transparent ETF structure.”

“Where the U.S. dollar is headed in the months and years to come is anyone’s guess, and the same goes for the directions of those major currencies in both the developed and emerging markets,” said Berns. “But that type of volatility, actively managed, could be a source of opportunity for investors. We’re thrilled to be launching FOXY and further expanding our suite of active ETF offerings and we look forward to educating the marketplace about the role currency exposure can play in building a diversified, robust portfolio.”

For more information about FOXY, visit https://www.simplify.us/etfs/foxy-simplify-currency-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.

GLOSSARY:

Carry: The return obtained from holding an asset assuming the underlying price of the asset remains stable.

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 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 is new and has a limited operating history to evaluate.

The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate, or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. The Fund's investment in fixed income securities is subject to credit risk (the debtor may default) and prepayment risk (an obligation paid early) which could cause its share price and total return to be reduced. Typically, as interest rates rise the value of bond prices will decline and the fund could lose value.

While the option overlay is intended to improve the Fund’s performance, there is no guarantee that it will do so. Utilizing an option overlay strategy involves the risk that as the buyer of a put or call option, the Fund risks losing the entire premium invested in the option if the Fund does not exercise the option. Also, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.

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.

Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.

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