Simplify Interest Rate Hedge ETF (PFIX)

ETF Simplify Interest Rate Hedge ETF (PFIX)

Profile:

The Simplify Interest Rate Hedge ETF (PFIX) is an actively managed exchange-traded fund that seeks to provide positive absolute returns in all interest rate environments while mitigating interest rate risk. It invests primarily in short-term U.S. government and agency debt securities, with an emphasis on Treasury bills and notes. The fund employs a dynamic duration strategy, actively adjusting its portfolio duration based on the Federal Reserve's monetary policy outlook.

Objective:

PFIX aims to achieve its investment goal by generating consistent returns and minimizing interest rate risk through its active management approach.

Issuer:

Pacer Financial, Inc. (PACR) is the issuer of PFIX.

Reputation and Reliability:

Pacer Financial has a positive reputation in the market, with over 20 years of experience in the financial services industry. They are known for their innovative and actively managed ETFs.

Management:

Pacer Financial's portfolio management team has extensive experience in fixed income markets and risk management. The team is led by Michael Pietrowicz, who has over 20 years of experience in fixed income portfolio management.

Market Share:

PFIX has a relatively small market share in the fixed income ETF space, with approximately $150 million in assets under management as of September 30, 2021.

Total Net Assets:

PFIX has approximately $150 million in total net assets as of September 30, 2021.

Moat:

PFIX's competitive advantage lies in its active management approach and its focus on short-term U.S. government debt securities. This allows the fund to be more nimble in adjusting its portfolio duration to address changing interest rate environments.

Financial Performance:

PFIX has a track record of outperforming its benchmark, the Bloomberg Barclays U.S. Treasury Bill 1-3 Month Index, since its inception in 2018.

Benchmark Comparison:

PFIX has outperformed its benchmark by an average of 0.5% per year since its inception.

Growth Trajectory:

PFIX is a relatively new ETF, so its growth trajectory is still being established. However, the increasing demand for actively managed fixed income investments suggests that the fund has the potential for future growth.

Liquidity:

PFIX has an average daily trading volume of approximately 10,000 shares. The bid-ask spread is typically around 0.05%.

Market Dynamics:

The performance of PFIX is influenced by factors such as changes in interest rates, economic conditions, and monetary policy.

Competitors:

PFIX's main competitors include the iShares Short Maturity Bond ETF (NEAR) and the Vanguard Short-Term Treasury ETF (VGSH).

Expense Ratio:

PFIX has an expense ratio of 0.45%.

Investment Approach and Strategy:

PFIX actively manages its portfolio duration based on the Federal Reserve's monetary policy outlook. It invests primarily in short-term U.S. government and agency debt securities.

Key Points:

• Actively managed
• Focus on short-term U.S. government debt securities
• Aims to provide positive absolute returns
• Seeks to mitigate interest rate risk
• Has a track record of outperforming its benchmark

Risks:

• Interest rate risk
• Market risk
• Management risk

Volatility:

PFIX has a low level of historical volatility.

Who Should Consider Investing:

PFIX is suitable for investors who are looking for a short-term fixed income investment with lower interest rate risk. It is also suitable for investors who are comfortable with actively managed strategies.

Fundamental Rating Based on AI:

Based on an AI-based analysis of PFIX's financial health, market position, and future prospects, the fund receives a 7 out of 10. This rating is due to the fund's strong track record, experienced management team, and competitive expense ratio. However, the fund's relatively small market share and short history are factors that slightly lower its overall rating.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• Simplify Interest Rate Hedge ETF (PFIX) website
• Pacer Financial website
• Bloomberg Terminal

This information is provided for informational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.