Simplify Files Active Small-Cap ETF Built Around Momentum Signals

Simplify has filed for the Simplify Empirical Targeted Small Cap Momentum ETF, an actively managed fund sub-advised by Empirical Wealth Management. The ETF will invest at least 80% of assets in U.S. small-cap equities, defined at filing as companies below roughly $12 billion in market value. Empirical will screen a universe of about 2,000 small-cap stocks using proprietary momentum measures, then select and weight companies displaying what it considers the strongest characteristics. The portfolio is expected to typically hold more than 100 securities and rebalance monthly, although trading frequency may change with market conditions. The strategy also incorporates liquidity, corporate actions and portfolio risk considerations. It has no explicit sector limits, meaning allocations could become concentrated in areas where momentum signals are strongest.