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Simplify Expands Barrier Income ETF Suite With the Launch of the Simplify Ancorato Target 25 Distribution ETF (XXV)

via Business Wire

Building on strong demand for its existing barrier income ETFs, XXV is the newest addition to a lineup designed to potentially generate higher monthly income than can be obtained through traditional fixed-income investments

Simplify Asset Management (“Simplify”), a leading provider of Exchange Traded Funds (“ETFs”), today announced the launch of the Simplify Ancorato Target 25 Distribution ETF (XXV).

XXV seeks to provide high monthly income, targeting a distribution goal of 25% on an annualized basis, through the sale of barrier put options with individual stocks as the underlying reference asset. It may also sell barrier put options based on the worst-of performance of a basket of several individual stocks. Barriers are constantly adjusted to levels designed to support the fund’s 25% target distribution rate.

“We’re excited to introduce XXV to the marketplace,” said Dave Berns, Co-Founder and Chief Investment Officer with Simplify Asset Management. “Investors continue to seek income solutions that balance yield and risk, and XXV seeks to meet that need by bringing structured investing into a transparent ETF format and offering the potential benefits of barrier income strategies without the limitations of traditional structured notes.”

XXV will be sub-advised by Ancorato Capital, an investment firm with deep expertise in the structured products space. It joins Simplify's growing lineup of barrier income ETFs that take the barrier income concept and provide it in the convenient ETF format. In April, the firm introduced the Simplify Barrier Income ETF (SBAR) and the Simplify Target 15 Distribution ETF (XV). These funds provide a more flexible and efficient alternative to traditional structured products by removing bank credit risk, easing compliance requirements, and maintaining continuous liquidity through seamless rollovers into new vintages – we believe ultimately delivering investors a dynamic way to capture attractive, option-based income opportunities.

“XXV represents the next phase in the growth of our barrier income lineup,” added Berns. “It’s clear that investors have a desire for smarter ways to generate income in an environment where traditional fixed income is challenged. At the same time, investors understand the value that experience and acumen bring when looking beyond traditional bond exposures. That’s what we’re seeking to deliver with XXV, and we are very excited to continue to educate the investor community about the role strategies like this can play in an income-focused portfolio.”

For more information on the Simplify Ancorato Target 25 Distribution ETF (XXV), visit: https://www.simplify.us/etfs/xxv-simplify-ancorato-target-25-distribution-etf

ABOUT SIMPLIFY ASSET MANAGEMENT INC

Simplify Asset Management Inc. is a Registered Investment Adviser founded in 2020 to help advisors tackle the most pressing portfolio challenges with an innovative set of options-based strategies. By accounting for real-world investor needs and market behavior, along with the non-linear power of options, our strategies allow for the tailored portfolio outcomes for which clients are looking. For more information, visit www.simplify.us.

GLOSSARY:

Barrier Option: A type of customized over-the-counter option in which the underlying reference assets, tenor and barrier level are negotiated with a counterparty. They set a threshold (“barrier”) below which the underlying notional value is fully exposed to the downside upon expiration.

Structured Note: A debt obligation that also contains an embedded derivative component that adjusts the security's risk-return profile.

Option: An option is a contract that gives the buyer the right to either buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a pre-determined price ("strike") by a specific date ("expiry"). An "outright" is another name for a single option leg. A "spread" is when options are bought at one strike and an equal amount of options are sold at a different strike, all at the same expiry.

IMPORTANT INFORMATION:

Investors should carefully consider the investment objectives, risks, charges, and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF's prospectus or Summary prospectus containing this and other important information, please call (855) 772-8488, or visit SimplifyETFs.com. Please read the prospectus carefully before you invest.

An investment in the fund involves risk, including possible loss of principal.

The fund is actively-managed and is subject to the risk that the strategy may not produce the intended results. The fund is new and has a limited operating history to evaluate.

The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate, or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. The Fund's investment in fixed income securities is subject to credit risk (the debtor may default) and prepayment risk (an obligation paid early) which could cause its share price and total return to be reduced. Typically, as interest rates rise the value of bond prices will decline and the fund could lose value.

Shareholders receiving periodic payments from the Fund may be under the impression that they are receiving net profits. However, all or a portion of a distribution may consist of a return of capital (i.e., from your original investment). Return of capital represents a return of a portion of the Fund shareholder's invested capital and is not taxable in the year it is received unless the distribution exceeds a shareholder's basis in the Fund. However, a return of capital may result in an increase in a later gain on a sale of Fund Shares or a reduction of a loss. There is no guarantee that the adviser will be successful in its attempt to have the Fund's distribution payments meet the target without some return of capital.

Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.

© 2025 Simplify ETFs. All rights reserved.

“XXV represents the next phase in the growth of our barrier income lineup,” Dave Berns, Co-Founder and Chief Investment Officer with Simplify Asset Management.

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