Simplify Hits $3B in Assets as TUA Inflows Surge

Simplify Asset Management, the ETF issuer focused on alternative strategies, hit the $3 billion mark in assets as its flagship short term treasury fund brought in hundreds of millions of investor dollars this year.

The company, which offered its first ETF only three years ago, announced in a tweet on Nov. 28 it had reached the $3 billion milestone. A huge chunk of the gain came from its largest fund, the $722 million Simplify Short Term Treasury Futures Strategy ETF (TUA), which brought in $735 million this year despite dropping 6.2%. The fund launched last November.

Simplify focuses on finding the “white space” in the ETF market, according to Brian Kelleher, chief revenue officer at the company. The firm currently has 26 ETFs on the market, and its most recent launch is the Simplify US Equity PLUS QIS ETF (SPQ). 

“Most of what we’ve done hasn’t existed in the market,” said Kelleher. “We’ve got a good feel for the market and what doesn’t exist, or at least doesn’t exist in ETF form.” 

As the ETF industry gets crowded with new products and issuers, firms often look to capture market share by cutting fees or finding a unique approach to an asset class that's not yet available to investors.  

“A key part of our success has been being able to see opportunities, figure out the right types of exposure, how to manage them and then figure out how to make it possible,” said Kelleher.  

Simplify Assets Surge with "True Diversification" 

Many of the firm’s largest funds employ alternative investment strategies that have been traditionally used by hedge funds, but since 2020 can be integrated into the ETF wrapper.  

Kelleher said one thing that has set the firm apart from competitors is “true diversification” in offerings. “Having a true [alternative] sleeve is something we’re constantly discussing with clients; we’re finding more and more allocators are looking for true liquid alts.”  

Contact Lucy Brewster at [email protected].