Simplify Asset Management has rolled out two new ETFs — the Simplify Tax Aware Alternatives ETF (NASDAQ:LQ) and the Simplify Tax Aware Diversified Income Strategy ETF (NASDAQ:DINE) — aimed at helping investors improve after-tax outcomes without sacrificing diversification or income potential. The launches come as advisors increasingly seek solutions that go beyond traditional stock-and-bond allocations while minimizing tax complexity.
According to Chief Investment Officer David Berns, Simplify designed the new ETFs as "easy-to-use" wrappers that combine multiple strategies into a single allocation. Both funds use a swaps-based structure tied to existing Simplify ETFs, with contracts typically extending beyond one year to qualify for long-term capital gains treatment.
The approach reflects growing investor focus on net returns after taxes, rather than headline performance, particularly in taxable accounts.
LQ targets long-term capital appreciation through a diversified mix of alternative strategies, including managed futures, commodities, and tail-risk hedging.
DINE, meanwhile, emphasizes income generation but seeks to limit frequent taxable distributions, giving investors more control over when income is realized.
Key Features
- Tax-efficient structure: Exposure gained via swaps with longer tenors, aiming for favorable long-term capital gains treatment
- Multi-strategy design: Combines several alternative or income-focused strategies into a single ETF allocation
- Diversification focus (LQ): Includes managed futures, commodities, currencies, and hedging strategies to reduce correlation with traditional assets
- Income optimization (DINE): Targets yield across fixed income, options, and equity income while minimizing regular distributions
- Simplified portfolio construction: Designed to reduce the need for holding multiple individual strategies
- Expense ratios: The funds have a 0.25% management fee each. However, a 0.10% fee waiver is in place, lowering the net expense ratio to 0.15% through at least April 5, 2027.
The firm built the ETFs to help investors balance diversification, income, and tax efficiency — three factors that are often difficult to optimize simultaneously.
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