Simplify Asset Management announced the launch of two first-of-their-kind fixed income ETFs.
Simplify Aggregate Bond PLUS Credit Hedge ETF (AGGH)
Simplify High Yield PLUS Credit Hedge ETF (CDX)
“In volatile markets, during times of financial stress, credit spreads can often widen with little notice, having a seriously detrimental effect on the performance of an investor’s fixed income portfolio. Hedging against such credit risk can be complicated and expensive, two issues we’ve sought to solve with the launch of AGGH and CDX,” said Paul Kim, CEO & Co-Founder of Simplify. “Through these ETFs, investors now have an approach that allows them to build a core fixed income portfolio, capturing both the investment grade and high yield universes, while also incorporating sophisticated credit hedge overlays to help protect against sudden shifts in credit spreads.”
ETF Newz Says:
From their press release - AGGH is the first ETF to provide investment grade bond exposure with a credit hedge overlay. CDX is the first ETF to provide high yield bond exposure with a credit hedge overlay, with the hedges opportunistically selected from among CDX calls, Quality-Junk factor-based hedges, or SPX puts.