Simplify Bond Bull ETF

RFIX

Market cap $129M

Simplify Bond Bull ETF offers leveraged exposure to long-term Treasury rates, profiting when rates fall and volatility rises. RFIX uses swaptions for synthetic leverage, making its performance highly sensitive to both interest rate direction and bond market volatility. Unlike TMF and UBT, RFIX underperformed recently, as volatility dropped and long-term yields remained elevated, despite Fed rate cuts.

The Simplify Bond Bull ETF is "151 proof" duration, and carries 3x the interest rate sensitivity of 20-year bond funds like TLT. This gives investors direct access to the "duration trade," where investors profit if interest rates fall, one of the investment theses behind TLT and other long bond funds. RFIX does pose a lot of risk, as it is very volatile and highly responsive to interest rate changes, making it a fund that investors should consider carefully.

The Simplify Bond Bull ETF leverages long-duration assets and swaptions to protect against economic downturns and sudden interest rate declines, offering significant capital appreciation. The ETF's strategy hinges on swaptions, which allow flexible entry into swap agreements, mimicking far-dated call options on treasuries with positive convexity. Despite a stable 4% SEC yield, the ETF's performance could suffer if interest rates don't decline rapidly or if the economy avoids a hard landing.

NEW YORK--(BUSINESS WIRE)--The Simplify Downside Interest Rate Hedge Strategy ETF (RFIX) has been renamed the Simplify Bond Bull ETF (RFIX).

On Tuesday, Simplify Asset Management bolstered its fund roster with the release of the Simplify Downside Interest Rate Hedge Strategy ETF (RFIX). RFIX looks to offer a defensive hedge against higher rate movements while profiting from drops in long-term interest rates.

NEW YORK--(BUSINESS WIRE)--Simplify launches Downside Interest Rate Hedge Strategy ETF (RFIX), providing simple and efficient way to obtain significant duration exposure.