Core Viewpoint - Simplify Asset Management has launched the Simplify DBi CTA Managed Futures Index ETF (SDMF) to enhance its alternatives lineup, aiming to provide institutional-grade hedge fund replication to a broader audience [1] Group 1: Product Launch and Strategy - The SDMF ETF debuted on February 19 on the NYSE Arca and tracks the DBi CTA Managed Futures Index, which seeks to replicate the pre-fee performance of the largest managed futures funds in the industry [1] - The strategy employs a rules-based, 10-factor replication model designed to capture major themes in the CTA space, allowing for long and short positions across various asset classes including equities, rates, currencies, and commodities [1] - SDMF primarily utilizes total return swaps to achieve capital efficiency and potentially enhanced tax treatment for investors [1] Group 2: Market Demand and Advisor Support - The launch of SDMF addresses the increasing demand from advisors for absolute return strategies amid persistent market volatility [1] - By replicating a basket of funds instead of relying on a single manager, the strategy aims to reduce selection risk commonly associated with managed futures [1] Group 3: Innovation in Alternatives - The SDMF launch follows other innovative products from Simplify, such as the Simplify Private Credit Strategy ETF (PCR), which offers exposure to the private credit market through a liquid, indexed approach [1] - The distinction between SDMF and PCR underscores Simplify's commitment to equipping advisors with precise tools for modern portfolio construction, catering to both trend-following and income-generating investment strategies [1]