Key Takeaways
- • Simplify Asset Management launched the Simplify Chinese Commodities Strategy No K-1 ETF (CCOM), a new fund providing long/short exposure to commodity futures traded on major Chinese exchanges without a Schedule K-1.
- • CCOM invests in commodity-linked swaps and futures referencing more than 30 markets traded on the Shanghai, Dalian, and Zhengzhou commodity exchanges.
- • The fund is built on a systematic long/short managed futures strategy designed by Altis Partners, combining a primary price-trend model with a secondary fundamental reversion model.
- • CCOM is positioned as a diversifier for U.S.-centric commodity allocations, offering access to contracts that according to the firm are not available to U.S. investors.
- • CCOM joins the Simplify Commodities Strategy No-K1 ETF (HARD), which applies the same strategy to global commodities.
Summary
CCOM is built on a systematic long/short managed futures strategy designed by Altis Partners. The fund seeks long-term capital appreciation by investing in commodity-linked swaps and futures referencing more than 30 markets traded on the Shanghai, Dalian, and Zhengzhou commodity exchanges. The strategy uses a primary model based on price trends across multiple time periods and a secondary fundamental reversion model intended to balance the trend-following model during periods when trend following underperforms. The strategy also dynamically manages futures curve positioning to account for contango and backwardation environments.
David Berns, Co-Founder and Chief Investment Officer at Simplify, said many Chinese futures contracts are inaccessible to U.S. investors, and that CCOM offers exposures that can behave differently from traditional U.S.-based commodity benchmarks, with potential diversification and inflation-sensitivity benefits. The firm positions the fund as a means of diversifying commodity portfolios that tilt heavily toward U.S.-centric exposures.
CCOM expands Simplify's commodity-focused ETF lineup alongside the Simplify Commodities Strategy No-K1 ETF (HARD), which applies the same long/short managed futures approach to global commodities. The announcement carries standard risk disclosures, including leverage risk, roll and curve risk during extended contango or backwardation, China-related emerging market volatility, limited operating history as a new ETF, and non-diversification risk.
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