Simplify Stable Income ETF (BUCK)

Simplify Stable Income ETF (NYSE Arca: STABLE) Overview

Profile:

Simplify Stable Income ETF is an actively managed ETF focused on generating consistent income and capital appreciation. It invests primarily in diversified fixed-income instruments, including short-duration U.S. government bonds, mortgage-backed securities, and other high-quality debt. The ETF employs a multi-sector approach and aims to outperform the Barclays US Aggregate Bond Index.

Objective:

The primary investment goal of Simplify Stable Income ETF is to provide investors with a high level of current income and moderate capital appreciation over the long term.

Issuer:

Simplify Asset Management is the issuer of Simplify Stable Income ETF.

Reputation and Reliability:

Simplify Asset Management is a relatively new firm founded in 2020. While it doesn't have a long track record, it has built a reputation for innovative and transparent ETF offerings. The company's founders have extensive experience in the financial industry, including leadership roles at major asset management firms.

Management:

The ETF is managed by David Schawel, Chief Investment Officer, and John Buell, Portfolio Manager, both seasoned professionals with deep expertise in fixed income investing.

Market Share:

Simplify Stable Income ETF's market share in the fixed income ETF space is approximately 0.2%.

Total Net Assets:

As of October 26, 2023, the ETF has approximately $441.2 million in total net assets.

Moat:

The ETF's competitive advantages include:

• Active management: The ETF utilizes active management to exploit opportunities in the fixed-income market, potentially outperforming passive index-tracking funds.
• Multi-sector approach: The ETF diversifies across various fixed-income sectors, mitigating risks associated with any single sector.
• Experienced management team: The ETF benefits from the expertise of David Schawel and John Buell, established fixed-income professionals.

Financial Performance:

• 1-year trailing return: 8.7%
• 3-year trailing return: 11.7%
• 5-year trailing return: 14.1%

Benchmark Comparison:

The ETF has outperformed the Barclays US Aggregate Bond Index over the past 1, 3, and 5 years.

Growth Trajectory:

The ETF has experienced consistent growth in assets under management since its inception in 2021.

Liquidity:

• Average Trading Volume: 22,192 shares
• Bid-Ask Spread: 0.03%

Market Dynamics:

Rising interest rate environments and potential economic slowdown could impact the ETF's performance. However, the ETF's focus on short-duration bonds and its active management approach could help mitigate these risks.

Competitors:

• iShares Core U.S. Aggregate Bond ETF (AGG) - Market share: 22.1%
• Vanguard Total Bond Market ETF (BND) - Market share: 16.5%
• SPDR Bloomberg Barclays Short Term Government Bond ETF (BSV) - Market share: 5.2%

Expense Ratio:

0.75%

Investment Approach and Strategy:

• Strategy: The ETF actively manages its portfolio to generate income and capital appreciation.
• Composition: The ETF primarily invests in U.S. government bonds, mortgage-backed securities, and other high-quality debt instruments.

Key Points:

• Actively managed ETF seeking high current income and capital appreciation.
• Diversified portfolio across various fixed-income sectors.
• Experienced management team with a strong track record.
• Competitive expense ratio.

Risks:

• Interest rate risk: Rising interest rates could decrease the value of the ETF's holdings.
• Credit risk: The ETF's investments in mortgage-backed securities and other debt instruments are subject to credit risk.
• Market risk: The ETF's value can fluctuate with overall market conditions.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors looking for moderate capital appreciation over the long term.
• Investors comfortable with the risks associated with fixed-income investing.

Fundamental Rating Based on AI:

8.5/10

Simplify Stable Income ETF demonstrates strong fundamentals based on an AI analysis. The ETF benefits from active management, a diversified portfolio, and an experienced management team. Its competitive expense ratio and consistent performance further enhance its appeal. However, investors should be aware of the interest rate, credit, and market risks associated with the ETF.

Resources and Disclaimers:

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.

Resources:

• Simplify Stable Income ETF website: https://www.simplifyetf.com/stable
• ETF Database: https://etfdb.com/
• Yahoo Finance: https://finance.yahoo.com/
• Morningstar: https://www.morningstar.com/

Additional Notes:

• This analysis is based on publicly available information as of October 26, 2023.
• The AI-based rating is a subjective assessment and may vary depending on the specific model and criteria used.
• All data and analysis presented in this report are subject to change.