New Simplify National Muni Bond ETF Launches, Opening More Ways to Invest
Simplify Asset Management has introduced an actively managed municipal bond ETF: the Simplify National Muni Bond ETF (NMB). The goal is straightforward—give investors another way to pursue diversified income, with a mix of sources designed to work together rather than in isolation.
How NMB Is Managed
NMB is sub-advised by Foundation Credit, a firm with more than a decade of experience managing portfolios for institutional clients. The fund takes an active approach aimed at two things at once: seeking attractive tax-free income from municipal bond coupons and looking for taxable gains through opportunistic trading in undervalued municipal securities. Alongside that, it uses a risk-managed overlay that sells option spreads tied to a range of instruments, including equity and fixed income indices, to add another stream of potential income.
A Multi-Part Strategy Built for More Than Coupons
As Simplify’s CIO and co-founder David Berns explains, NMB is built to do more than “clip coupons.” The strategy blends yield from municipal bonds with targeted investments in overlooked securities and adds income from an options-writing program. The idea is to expand the sources of return in a capital-efficient way, so you can potentially broaden outcomes without committing a lot of additional capital.
What That Could Mean for Investors
The fund brings together both tax-free and taxable income sources within one vehicle. The approach is designed with the potential for after-tax outcomes that may substantially outperform conventional national municipal bond indexes. Berns underscored his enthusiasm for bringing NMB to market, noting that the strategy is intended as a practical, powerful tool for investors seeking more from their municipal exposure.
Where NMB Fits in Simplify’s Lineup
NMB sits alongside Simplify’s existing fixed income offerings, including the $1.2 billion Simplify MBS ETF (MTBA) and the Simplify Short Term Treasury Futures Strategy ETF (TUA). Together, these funds reflect a consistent approach to building fixed income solutions. As the market grows, Simplify’s fund lineup is approaching $6 billion in assets under management, a sign of steady adoption across its strategies.
Learn More About Simplify’s Offerings
If you want deeper details on NMB, Simplify’s official site provides ongoing updates and insights. You’ll find content that digs into the firm’s approach, including analysis of strategies they use and the broader trends shaping today’s markets.
About Simplify Asset Management Inc.
Simplify Asset Management Inc. is a Registered Investment Adviser founded in 2020 to help advisors address real, persistent portfolio challenges. The firm uses options-based techniques to better align portfolios with investor needs and actual market behavior, with the aim of delivering more tailored outcomes.
Frequently Asked Questions
What is the Simplify National Muni Bond ETF (NMB)?
NMB is an actively managed municipal bond ETF that seeks tax-free income from municipal coupons and taxable gains from opportunistic trading and options strategies, all within a single fund.
How could NMB enhance investor returns?
It combines three potential sources: income from municipal bonds, selective investments in overlooked municipal securities, and income from selling options spreads—an approach intended to broaden after-tax outcomes.
What’s the core strategy behind NMB?
The fund uses active management across municipal bonds and adds a risk-managed options overlay that sells option spreads on equity and fixed income indices to introduce another stream of potential income.
Who’s involved in managing NMB?
Foundation Credit serves as sub-adviser, bringing extensive credit expertise and portfolio management experience to NMB’s day-to-day implementation.
Why include an options-writing component?
The options-writing strategy is designed to generate additional income and help manage risk, complementing the fund’s municipal bond holdings rather than replacing them.
