Simplify Asset Management has launched the Simplify National Muni Bond ETF (NMB), an actively managed municipal bond ETF. The fund, sub-advised by Foundation Credit, aims to achieve attractive tax-free income through municipal bond coupons while generating taxable gains by trading undervalued municipal securities. NMB also incorporates a risk-managed, income-generating options selling strategy across various instruments.
The ETF combines three potential return sources: muni bond yields, opportunistic investments in overlooked securities, and income from option-writing. This approach aims to provide after-tax yields exceeding national municipal bond indexes. NMB joins Simplify's growing lineup of fixed income solutions, including the $1.2 billion Simplify MBS ETF (MTBA) and the Simplify Short Term Treasury Futures Strategy ETF (TUA).