This is not an index you can invest in directly one must invest in futures, options, or ETFs based on VIX to gain exposure to the index. Options are a powerful tool for creating a wide array of payoff profiles and can be used on a standalone basis or integrated into a broader portfolio strategy.Ī real-time market index representing the market’s expectations for volatility over the coming 30 days. Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.Īn option is a contract that gives the buyer the right to either buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a pre-determined price by a specific date. Also, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.
Utilizing an option overlay strategy involves the risk that as the buyer of a put or call option, the Fund risks losing the entire premium invested in the option if the Fund does not exercise the option. While the option overlay is intended to improve the Fund’s performance, there is no guarantee that it will do so.
The Fund invests in ETFs (Exchange-Traded Funds) and is therefore subject to the same risks as the underlying securities in which the ETF invests as well as entails higher expenses than if invested into the underlying ETF directly. VIX futures are unlike traditional futures contracts not based on a tradeable asset and it is possible to lose a portion or all of an investment. VIX futures contracts can be highly volatile and the Fund may experience sudden and large losses when buying selling or holding such instruments. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations (ii) risk of mispricing or improper valuation and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate, or index. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The fund is new and has a limited operating history to evaluate. The fund is actively-managed is subject to the risk that the strategy may not produce the intended results. Please read the prospectus carefully before you invest.Īn investment in the fund involves risk, including possible loss of principal.
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To obtain an ETF's prospectus containing this and other important information, please call (855) 772-8488 or view or download a prospectus online. Investors should carefully consider the investment objectives, risks, charges and expenses of Exchange Traded Funds (ETFs) before investing.
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