Key Takeaways
- • Simplify Asset Management launched the Simplify DBi CTA Managed Futures Index ETF (SDMF), a rules-based, index-driven managed futures fund, according to a Business Wire release dated February 24, 2026.
- • SDMF seeks to closely track the DBi CTA Managed Futures Index, which replicates the performance of a basket of the largest managed futures hedge funds before their estimated average fees and expenses.
- • The index rebalances weekly into a portfolio of ten highly liquid futures contracts across interest rates, currencies, equities, and commodities, with both long and short positions.
- • SDMF gains primary exposure through total return swaps, which the firm says may improve capital efficiency and potentially enhance tax efficiency versus traditional managed futures structures.
- • The launch complements Simplify's actively managed CTA and CTAP ETFs, aiming to add diversification while reducing individual manager selection risk.
Summary
Simplify Asset Management Inc., a provider of exchange-traded funds, announced the launch of the Simplify DBi CTA Managed Futures Index ETF (SDMF), a new fund designed to give investors efficient, liquid access to the diversification benefits of managed futures through a rules-based index strategy, according to the firm's Business Wire announcement.
SDMF seeks to closely track the DBi CTA Managed Futures Index, which is designed to replicate the performance of a basket of the largest managed futures hedge funds prior to the deduction of their estimated average fees and expenses. The index uses a systematic replication framework developed by DBi, which the release describes as a pioneer in factor models used to capture the return drivers of the managed futures and CTA universe. Each week, the index constructs a rules-based portfolio of ten highly liquid futures contracts across interest rates, currencies, equities, and commodities, taking both long and short positions to reflect major themes in the CTA industry.
The fund primarily obtains exposure to the index through total return swaps, an approach the firm says may improve capital efficiency and potentially enhance tax efficiency relative to traditional managed futures structures. SDMF may also invest directly in futures contracts when appropriate.
David Berns, Chief Investment Officer and Co-Founder of Simplify, said managed futures have historically exhibited low correlations to both stocks and bonds, making them a potentially powerful diversifier within traditional portfolios. He described SDMF as a complementary solution to the firm's existing actively managed exposures. SDMF joins the Simplify Managed Futures Strategy ETF (CTA) and the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP) in the firm's managed futures lineup. Berns said the three funds each offer a distinct approach to managed futures investing.
The release notes risks including the fund being a new ETF with no operating history, non-diversification, passive investment (no active selling for underperformance), leverage and rolling risks associated with futures, and the possibility of loss of principal. The fund is distributed by Foreside Financial Services, LLC.
SDMF seeks to closely track the DBi CTA Managed Futures Index, which is designed to replicate the performance of a basket of the largest managed futures hedge funds prior to the deduction of their estimated average fees and expenses. The index uses a systematic replication framework developed by DBi, which the release describes as a pioneer in factor models used to capture the return drivers of the managed futures and CTA universe. Each week, the index constructs a rules-based portfolio of ten highly liquid futures contracts across interest rates, currencies, equities, and commodities, taking both long and short positions to reflect major themes in the CTA industry.
The fund primarily obtains exposure to the index through total return swaps, an approach the firm says may improve capital efficiency and potentially enhance tax efficiency relative to traditional managed futures structures. SDMF may also invest directly in futures contracts when appropriate.
David Berns, Chief Investment Officer and Co-Founder of Simplify, said managed futures have historically exhibited low correlations to both stocks and bonds, making them a potentially powerful diversifier within traditional portfolios. He described SDMF as a complementary solution to the firm's existing actively managed exposures. SDMF joins the Simplify Managed Futures Strategy ETF (CTA) and the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP) in the firm's managed futures lineup. Berns said the three funds each offer a distinct approach to managed futures investing.
The release notes risks including the fund being a new ETF with no operating history, non-diversification, passive investment (no active selling for underperformance), leverage and rolling risks associated with futures, and the possibility of loss of principal. The fund is distributed by Foreside Financial Services, LLC.
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