AGGH: Liquidity Tensions And Low Probability Of Tightening

2025-11-17 19:41:19 ET

The Simplify Aggregate Bond ETF ( AGGH ) offers exposure to US investment-grade fixed income, incorporating a hedging strategy that aims to improve the fund's performance relative to a traditional ETF such as AGG. This ETF builds its portfolio by purchasing other ETFs that in turn hold these investment-grade bonds, thereby achieving the desired exposure to this debt universe. It is on this basis of purchased ETFs that it applies its hedging strategy, which consists of applying a layer of derivatives designed to generate extra returns in positive credit environments and to act as a hedge against stress situations in this type of credit (typically situations of widening spreads)....

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