A New ETF Seeks to Short Volatility While Dodging Total Wipeout
- Simplify ETF will deliver inverse of volatility futures index
- Options aim to protect actively managed fund from severe loss
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Exchange-traded products that bet against stock volatility have a history of blowing up. A New York-based firm is pitching a novel solution to the problem.
Simplify Asset Management plans to create a short-volatility ETF that piles on protection to guard investors from the periodic storms that hit the strategy.