ETF Hearsay: SimplifyETFs to list four ETFs next week on NYSE Arca

Simplify Volt Fintech Disruption ETF | VFIN

Expense ratio: 1.03%
CUSIP: 82889N707

Simplify Volt Pop Culture Disruption ETF | POP
Expense ratio: 1.03%
CUSIP: 82889N806

Simplify Volt RoboCar Disruption ETF | VCAR

Expense ratio: 1.09%
CUSIP: 82889N889

Simplify Volt Cloud and Cybersecurity Disruption ETF | VCLO
Expense ratio: 1.02%
CUSIP: 82889N871

Characteristics common to all four funds

Investment Universe: Global equity securities and ETFs.

Each fund will have both an equity strategy consistent with its investment theme, and an option overlay strategy.

Equity Strategy

Companies that derive a significant portion of their revenue or market value from the stated investment them of the fund.

Companies that have stated that their primary business is focused on the particular investment theme.

Option Overlay Strategy

Each fund's option overlay is to attempt to enhance returns on up markets and to mitigate losses on down markets. It will be applied to 20% of each fund's net assets and consists of:

Buying puts on individual securities and puts on broad market indexes and index ETFs.
Buy calls on individual securities.

Original filing date: September 14, 2020

Adviser: Simplify Asset Management Inc

Sub-Adviser: Volt Equity LLC

Prospectus is here.

Specific Fund Characteristics

Simplify Volt Fintech Disruption ETF | VFIN

Equity Strategy

Invests in Fintech disruptive companies that:

(i) derive a significant portion of their revenue or market value from the theme of financial technology (“Fintech”) disruption or

(ii) have stated their primary business to be in products and services focused on the theme of Fintech disruption.

Fintech Disruption are companies that may develop, use or rely on:

innovative payment platforms and methodologies
point of sale providers
e-commerce
transactional innovations
business analytics
fraud reduction
frictionless funding platforms
peer-to-peer lending
intermediary exchanges
asset allocation technology
blockchain technologies
cryptocurrency
mobile payments

VFIN will not directly or indirectly invest in cryptocurrencies but will invest in companies that support cryptocurrencies or blockchain.

VFIN will invest up to 25% of the Fund’s assets in Square, Inc. and up to 25% of the Fund’s assets in Adyen N.V.

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Simplify Volt Pop Culture Disruption ETF | POP

Equity Strategy

Invests in Pop Culture disruptive companies that:

(i) derive a significant portion of their revenue or market value from the theme of pop culture disruption or

(ii) have stated their primary business to be in products and services focused on the theme of pop culture disruption.

Pop culture disruption companies are companies that focus on and benefit from innovations in:

disruptive innovation in social media (“Social Media Companies”)
streaming media (“Streaming Media Companies”)
Internet of Things (“Internet of Things Companies”)

These types of companies are described below:

Social Media Companies

Companies that use website and/or applications to allow people to share media quickly, efficiently and in real time.

Streaming Media Companies

Companies that deliver media such as video or audio through a streaming medium. These companies rely on consumers having a stable and fast enough internet connection to consume digital products continuously.

Internet of Things Companies

Companies that deliver media through platforms that do not include the traditional platforms of television, phone or computer.

VPOP will invest up to 25% of the Fund’s assets in Spotify Technology S.A. and up to 25% of the Fund’s assets in Snap, Inc.

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Simplify Volt RoboCar Disruption ETF | VCAR

Equity Strategy

Invests in robocar disruption and technology companies that:

(i) derive a significant portion of their revenue or market value from the theme of robocar disruption and technology or

(ii) have stated their primary business to be in products and services focused on the theme of robocar disruption and technology.

Robocar companies are companies that the sub-adviser believes are expected to focus on and benefit from the development of new products or services, technological improvements and advancements in scientific research related to, among other things, disruptive innovation in

autonomous transportation (“Autonomous Driving Companies”)
electric energy (“Electric Energy Companies”)
artificial intelligence (“Artificial Intelligence Companies”)

These types of companies are described below:

Autonomous Driving Companies. Companies that the sub-adviser believes are focused on transportation through an emphasis on mobility as a service.

Electric Energy Companies. Companies that the sub-adviser believes seek to capitalize on innovations or evolutions in: (i) ways that energy is stored or used, especially electric battery storage technologies and/or (ii) the production or development of new materials for use in commercial applications of energy production, use or storage, such as solar energy.

Artificial Intelligence Companies. Companies that leverage data collection and artificial intelligence methods to extract data, insights or products through artificial intelligence.

VCAR will invest up to 25% of the Fund’s assets in Tesla, Inc.

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Simplify Volt Cloud and Cybersecurity Disruption ETF | VCLO

Equity Strategy

Invests in cloud and cybersecurity companies that:

(i) derive a significant portion of their revenue or market value from the theme of cloud and cybersecurity disruption or

(ii) have stated that their primary business to be in products and services focused on the theme of cloud or cybersecurity disruption.

Cloud and Cybersecurity are those companies that the sub-adviser believes are focused on and expected to benefit from shifting the bases of technology infrastructure from hardware and software to the cloud, enabling mobile and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services.

These companies may include mail order houses which generate the entirety of their business through websites and which offer internet-based products and services, such as streaming media or cloud storage in addition to traditional physical goods. These companies may also include ones that develop, use or rely on innovative payment methodologies, big data, the “internet of things,” machine learning, and social distribution and media.

These companies may include disruptive innovation in data management or cybersecurity: