Simplify has launched their newest thematic ETF, the Simplify Propel Opportunities ETF (SURI ) on NYSE Arca, that seeks to provide exposure to companies within health sciences which are often overlooked by investors. The fund seeks capital appreciation by employing a multi-asset strategy that includes concentrating at least 25% of its net assets in pharma, biotech, healthcare technologies, and life sciences companies.
SURI is an actively managed thematic ETF that seeks to capture long-term growth prospects within overlooked companies in health sciences while also investing across the asset spectrum. The fund is sub-advised by Propel who utilizes a multi-asset strategy that includes common and preferred stock, convertible bonds, structured notes, corporates notes and bonds, and ETFs that invest in all of the aforementioned.
Layered on top of the subadvisor’s multi-asset strategy is a derivative strategy employed by Simplify to enhance or partially protect returns that can account for up to 20% of SURI’s portfolio. Derivatives the fund can utilize include treasury, equity, commodity, and currency futures; over-the-counter put and call options on treasuries, equities, commodities, currencies, or futures; and total return swaps.
SURI invests across market caps, countries, and currencies without restrictions on debt credit quality, structure, maturity, or issuer type. Propel utilizes bottom-up analysis to identify companies and securities that may be currently overlooked by investors and have strong capital appreciation potential based on their analysis of expected relative returns. Propel also relies on individuals it employs that have significant scientific, operational, technical, regulatory, and commercial knowledge to conduct analysis of companies within health care.
Health care companies that SURI invests in will generally be small- to medium-cap companies that can include “early stage” companies that are in the process of developing new products or conducting trials and may not yet be profitable.
At launch SURI’s top holdings include Plains All American Pipeline at 22.11%, Athira Pharma Inc at 7.16%, and the SPDR Bloomberg Barclays Investment Grade Floating Rate ETF (FLRN ) at 5.72%.
SURI has an expense ratio of 2.51%.
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