Simplify launches two tax-focused ETFs targeting advisor demand

Simplify Asset Management launched two new exchange-traded funds designed to provide tax-efficient investment strategies for advisors and investors.

The Simplify Tax Aware Alternatives ETF (LQ) and the Simplify Tax Aware Diversified Income Strategy ETF (DINE) both use multi-strategy approaches that combine several of the company's existing investment methods into single allocations.

Both funds gain exposure through swaps on Simplify ETFs rather than holding underlying positions directly. These swaps are structured with tenors of at least one year, making gains upon expiration eligible for long-term capital gains tax treatment, according to the company's press release.

The LQ fund seeks long-term capital appreciation by investing in alternative strategies including managed futures, commodities, currencies, energy infrastructure, and tail-risk hedges. The fund aims to diversify traditional stock and bond allocations.

The DINE fund focuses on income-producing strategies across enhanced core fixed income, credit-hedged high yield, option-based income, equity income, and currency-based strategies. The fund aims to minimize regular distributions, allowing investors more control over when they realize income through share sales.

"Investors are increasingly focused on what they keep after taxes, not just what they earn," said David Berns, Co-Founder and Chief Investment Officer at Simplify. "With LQ and DINE, we're giving advisors and investors tools that seek to improve after-tax outcomes without sacrificing diversification or income potential in a single, easy-to-use ETF wrapper."

Simplify Asset Management is a registered investment adviser founded in 2020 that provides options-based investment strategies through ETFs.

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