Simplify Interest Rate Hedge ETF

Frequently Asked Questions About PFIX

What does PFIX invest in?

The Simplify Interest Rate Hedge ETF (PFIX) is designed to mitigate the impact of ascending long-term interest rates and capitalize on periods of elevated market stress characterized by increased fixed income volatility. The fund achieves this by holding substantial positions in over-the-counter (OTC) interest rate options. These options are specifically chosen to provide a direct, transparent, and convex upside from significant increases in both interest rates and their inherent volatility. PFIX offers retail investors access to sophisticated OTC derivatives, instruments traditionally reserved for institutional players. In essence, it is designed to function similarly to holding long-dated put options on 20-year US Treasury bonds. By maintaining these option exposures for an extended duration, the ETF delivers a clear and uncomplicated solution for interest rate hedging.

What is the expense ratio of PFIX?

Simplify Interest Rate Hedge ETF (PFIX) charges an expense ratio of 0.50%. This is the annual fee deducted from fund assets to cover management and operations.

What is PFIX's dividend yield?

PFIX's trailing-twelve-month yield is 7.25%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of PFIX?

Effective duration measures PFIX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. PFIX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of PFIX?

PFIX's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of PFIX?

Yield to maturity (YTM) is the total return you'd earn from PFIX if every bond in the portfolio is held to maturity at the current price. PFIX's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.