High-yield investments – meaning high single digits or higher – tend to come from a small handful of investment types. These assets tend to move together, with higher interest rates usually a negative. But the Simplify Currency Strategy ETF (FOXY) is an alternative in the high-yield space, notes Tim Plaehn, editor of The Dividend Hunter.
Simplify specializes in offering ETFs that invest in a wide range of alternative assets. This is how the firm describes FOXY on its website:
“The Simplify Currency Strategy ETF (FOXY) seeks capital gains by taking long and short positions in foreign currencies. Returns are expected to be generated through the combination of a ‘carry’ strategy applied to emerging market currencies combined with a mean-reversion strategy applied to G10 currencies.”
(Editor’s Note: Tim is speaking at the 2027 MoneyShow/TradersEXPO Las Vegas, scheduled for Feb. 21-24. Click HERE to register.)
Simplify Currency Strategy ETF (FOXY)
It’s worth noting that FOXY is not a currency trading fund. The carry strategy involves buying a higher-yielding currency and short-selling a lower-yielding one to earn the difference between the rates. The trade requires very little capital, so the ETF can leverage currency exposure and returns.
Between its launch in February 2025 and Sept. 30, FOXY returned 21%, or 12.2% annualized. Dividends are paid monthly, with a current distribution rate of 10.3%.
