strategies at hedge funds, he has been closely monitoring the regulatory developments in this market for years. officially passed a modernized regulatory framework on the use of derivatives, which specifically permitted their use in ETFs.
He added that using derivatives in the ETF format also has an additional benefit of positive tax treatment. As opposed to mutual funds, investors will not have taxable events in the ETF structure until they as the end investor choose to buy or sell. "That's a really powerful event because the biggest problem with derivative strategies in the investment world is that gains are treated as short-term gains almost regardless of the underlying structure or how long you're held," Green said."This changes that and puts derivative strategies on equal footing with non-derivative strategies."
It is no wonder that just a few months after the rule change, Green has joined Simplify as a portfolio manager and chief strategist. "From my perspective, the opportunity to move first and be among the first to introduce these types of nonlinear strategies into the ETF space was just an opportunity that's too good to pass up," he said.Subscribe to push notifications
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