Simplify Short Term Treasury Futures Strategy ETF

TUA seeks to match or outperform an intermediate-term US Treasury index for a calendar quarter, through an actively managed portfolio of futures, call and put options on US treasury futures, US government securities, and ETFs. 

The Simplify Short-Term Treasury Futures Strategy ETF offers a levered bet on 2-year treasury futures. Market expectations for aggressive Fed rate cuts have shifted to a more hawkish stance due to stalled inflation improvements and a stronger-than-expected economy. Despite potential inflationary fiscal policies from President Trump, the Fed is unlikely to raise rates, aligning with political pressures and historical precedents.

TUA: Favorable Reward To Risk (Upgrade)

Simplify National Muni Bond ETF

On Tuesday, Simplify Asset Management unveiled the next addition to its bond ETF library: the Simplify National Muni Bond ETF (NMB).  Primarily, NMB seeks to provide income for its investors, and has a net expense ratio of 0.52%.

New Simplify Bond ETF Uses Muni Income Strategy

The Federal Reserve left rates on hold at the July 31st meeting, and they have now been on hold for over a year. TUA ETF has about 5 times exposure to the 2-year U.S. Treasury Note, giving it a duration of about 8 to 9 years. The 2-year part of the yield curve will benefit the most when the Fed starts to ease monetary policy, and TUA is a good option to express this idea.

Still A Great Opportunity To Invest In TUA

The Simplify Short-Term Treasury Futures Strategy ETF is a levered bet on lower short-term interest rates. In recent weeks, investor sentiment has once again swung in the direction of imminent rate cuts, boosting TUA's valuation. However, I believe the Fed may be more patient than pundits, as they may not want to repeat last year's mistake of loosening monetary policy prematurely.

TUA: Positive Yielding Hedge Against Economic Downturn

The Simplify Short-Term Treasury Futures Strategy ETF is a levered bet on lower short-term interest rates. The TUA ETF may face headwinds as the American economy appears stronger than expected, potentially delaying or reducing interest rate cuts by the Federal Reserve. Since 2-year yields are closely tied to the Fed's monetary policies, if the Fed cuts less than 3 times, then 2-year yields may rise, pressuring the TUA ETF.

TUA: When Facts Change (Rating Downgrade)

The TUA ETF is a leveraged bet on declining short-term interest rates. Expectations for the first rate cut have been pushed back, resulting in an increase in 2-year yields and losses for the TUA ETF. Despite the recent losses, investors should not bail on the TUA ETF as current 2-year yields now are consistent with the Fed's projections.

TUA: Higher For Longer Redux?

I covered TUA last April and a reader has asked for an update since interest rates are expected to decrease in 2024. TUA invests in short-term treasury futures. It aims for similar risk to medium-term treasuries, but with higher yields and returns. Although the fund has failed to live up to its potential in the past, the future looks rosier.

TUA: Treasury Futures ETF, 4.9% Yield, Positive Prospects

Simplify recently released a deep dive video, confirming my prior understanding of the fund. The Fed recently suggest peak short-term rates have been reached. Looking forward, TUA looks fairly priced in a 'soft landing' scenario. However, there is upside in a 'hard landing' scenario. Given attractive risk/rewards, I am raising the TUA to a buy.

TUA: Revisiting Post December FOMC, Upgrade To Buy

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NEW YORK--(BUSINESS WIRE)--Simplify announced today that it expects to deliver capital gains distributions across six Simplify ETFs.

Simplify Provides Estimated Capital Gain Distribution Information for 2023

The Simplify Short Term Treasury Futures Strategy ETF aims to match or outperform the ICE US Treasury 7-10 Year Bond Index through leveraged long positions in 2-Year treasury futures. The ETF has lagged behind the 7-10 Index in terms of returns, potentially due to differences in the yield curve movements. Unless they are comfortable with this yield curve bet, I recommend investors avoid the TUA ETF.

TUA: Hidden Bet On The Yield Curve

Democracy International Fund

On this episode of ETF Prime, host Nate Geraci speaks with a trio of individuals discussing fixed income, innovative ETFs, and DMCY. His guests include VettaFi's Tom Lydon, who discusses significant topics from the Fixed Income Symposium.

ETF Prime: Lydon on Fixed Income, Plus Innovative ETFs and DMCY

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Hello! This is markets reporter Isabel Wang bringing you this week's ETF Wrap. In this week's edition, I spoke with CFRA's Aniket Ullal, head of ETF data and analytics, about thematic ETF ideas and investment categories for the second half of 2023.

Here are ETF themes and categories investors may want to consider in the second half of 2023

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In this week's edition of the ETF Issuer League, it's State Street that has taken a big leap forward. The megafirm's ETF AUM hit $1 trillion in total AUM via price and flows influence.

ETF Issuer League: State Street, WisdomTree Up

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In this week's edition of the ETF Issuer League, WisdomTree, Dimensional, Simplify, and Capital Group stood out the most. In each of their respective tiers, those firms saw stand-out inflows or surpassed or neared new milestones.

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TUA: New Simplify Short-Term Treasury ETF, With A Twist.

TUA: New Simplify Short-Term Treasury ETF, With A Twist

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Despite increased volatility last month, markets ended the first quarter on a high note. Some of the best ETFs and mutual funds surged.

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Tua is not only the name of the potential MVP quarterback of the Miami Dolphins, but also the ticker for a new fixed income strategy from Simplify. Simplify Asset Management today announced the launch of the Simplify Short Term Treasury Futures Strategy ETF (NYSE Arca: TUA).

Simplify Launches Short-Term Treasury Futures Strategy ETF, TUA

NEW YORK--( BUSINESS WIRE )--Simplify Asset Management (“Simplify”), an innovative provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify Short Term Treasury Futures Strategy ETF (TUA).

News for Simplify Short Term Treasury Futures Strategy ETF ETF (TUA)