Simplify lists Simplify Interest Rate Hedge ETF (PFIX)

Simplify has launched the Simplify Interest Rate Hedge ETF (PFIX), which seeks to provide a hedge against a sharp increase in long-term interest rates. The fund holds a large position in over-the-counter (OTC) interest rate options intended to provide a direct and transparent convex exposure to large upward moves in interest rates and interest rate volatility. 

Using OTC derivatives usually only available to institutional investors, PFIX is designed to be functionally similar to owning a position in long-dated put options on 20-year US Treasury bonds. Since the option position is held for extended periods, the ETF provides a simple and transparent interest rate hedge. 

The fund is the latest addition to Simplify’s fast-growing ETF family