Simplify's New ETF Blends Stocks And Managed Futures — Is This The Ultimate Diversification Hack?

Simplify Asset Management has launched the Simplify US Equity PLUS Managed Futures Strategy ETF (NYSE:CTAP), a new fund designed to provide long-term capital appreciation by combining, in a single, capital-efficient ETF wrapper, two return streams that have traditionally been uncorrelated: large-cap U.S. equities and a systematic managed futures strategy.

The portfolio offers 100% exposure to U.S. large caps through a passive, market-cap-weighted allocation in a low-cost, liquid ETF. Meanwhile, investors also get 100% exposure to a long/short managed futures strategy run by Altis Partners, whose two decades of experience in the category anchors the fund’s derivatives-driven sleeve.

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CTAP sources its managed futures component through a total return swap linked to the performance of Simplify’s existing Managed Futures Strategy ETF (NYSE:CTA), which has raised over $1.1 billion in assets since its 2022 launch.

Trend-following and multi-asset in nature, the CTA approach spans global commodities and interest rates, is designed to deliver absolute returns, and offers strong diversification properties, particularly in turbulent or macro-driven markets.

David Berns, co-founder and CIO at Simplify, said the strategy was built with two priorities in mind: diversification and capital efficiency. “Historically, stocks and managed futures have exhibited a low correlation with each other, making them effective partners in a two-strategy combination,” he added, noting that CTAP allows investors to fold managed futures into a portfolio without trimming equity exposure or allocating additional capital.

By packaging both exposures into a single ETF, Simplify positions CTAP as a tool for investors looking to achieve a more resilient portfolio structure-one that can potentially buffer equity drawdowns while still keeping full participation in the stock market.

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