Simplify Bond Bull ETF (RFIX)

The Simplify Bond Bull ETF (RFIX) is structured to profit mainly from a decline in long-term interest rates and from heightened periods of instability in the bond market. It also aims to offer investors a potential source of income. The fund primarily achieves these objectives by holding over-the-counter (OTC) interest rate options with extended maturities, typically ranging from five to seven years. These derivatives are strategically used to provide direct, clear, and 'convex' exposure to falling interest rates – meaning the potential for significantly magnified gains as rates decrease. In essence, RFIX employs these OTC instruments to function much like owning call options with distant expiry dates on US Treasury bonds.