PFIX ETF

The PFIX ETF's short to medium-term outlook is negative due to the Federal Reserve's anticipated rate-cutting cycle in response to a weakening U.S. economy. Despite current challenges, investors may want to keep an eye on the PFIX, as today's Fed rate cuts may lead to tomorrow's inflation. Furthermore, America's budget deficits remain large and unsustainable and may boost long-term interest rates down the line.

With Trump's election odds rising, investors need to start considering the implications of his policies. I believe Trump's policies are inflationary, which may lead to higher long-term interest rates in response. Even if Democrats win, America's fiscal situation remains dire and the path of least resistance may be higher long-term interest rates.

After a challenging week, Wall Street ended on a positive note as tech stocks drove a rally on Friday.

The Simplify Interest Rate Hedge ETF (PFIX) is an ETF that aims to hedge against higher 20-year rates and profit from fixed income volatility. The fund exhibits the pay-off profile of a 3x treasury bear fund, and has closely tracked the Direxion Daily 20+ Yr Trsy Bear 3x ETF (TMV). The thesis argues that the Federal Reserve is unlikely to raise rates further, and long-term rates are expected to decrease.

Simplify Interest Rate Hedge ETF has returned over 25% since August, offsetting fixed income losses from rising interest rates. However, Treasury Department's recent Quarterly Refunding Announcement acted as a catalyst to relieve some pressures in the treasury bond markets on lower total issuance and coupon bond share. Longer term, my macro outlook still calls for structurally higher long-term interest rates as the U.S. government continues to rack up deficits at an alarming rate.

For investors seeking momentum, Simplify Interest Rate Hedge ETF PFIX is probably on the radar. The fund just hit a 52-week high and is up 91.96% from its 52-week low price of $56.88/share.

Simplify Interest Rate Hedge ETF is an interest rate hedging instrument that invests in US Treasury bonds and uses swaptions to benefit from rising interest rates. The PFIX ETF will likely benefit from the current higher for longer interest rate environment and yield volatility. The PFIX ETF currently trades at a discount, seemingly driven by a growing asset base.

For investors seeking momentum, Simplify Interest Rate Hedge ETF PFIX is probably on the radar. The fund just hit a 52-week high and is up 59.42% from its 52-week low price of $56.88/share.

Still, higher core inflation rates points to a longer-than-expected period of elevated interest rates.