Simplify Exchange Traded Funds (QIS)

ETF Simplify Exchange Traded Funds

Profile:

Simplify Exchange Traded Funds (SPLN) is a thematic ETF provider focused on disruptive innovation themes across multiple industries. Their ETFs invest in a diversified portfolio of companies actively shaping the future through technological advancements and changing consumer behaviors. SPLN offers exposure to sectors like artificial intelligence, robotics, autonomous vehicles, clean energy, and genomics, among others.

Objective:

The primary investment goal of Simplify Exchange Traded Funds is to provide long-term capital appreciation by investing in a portfolio of companies poised to benefit from disruptive innovation.

Issuer:

Simplify Asset Management (Simplify) is the issuer of SPLN ETFs. Simplify is a relatively young asset management company founded in 2015, but they have quickly gained a reputation for their innovative and thematic investment approach.

Reputation and Reliability:

Simplify has a good reputation in the market. Their innovative and thematic ETFs have attracted significant investor interest. However, due to their recent launch, they have a shorter track record compared to established ETF providers.

Management:

Simplify is led by an experienced investment team with a deep understanding of disruptive technologies and their impact on various industries. Their team includes individuals with backgrounds in finance, technology, and research.

Market Share:

Simplify has a small market share compared to major ETF providers. They are still growing and gaining recognition, but it will take some time to capture a larger portion of the market.

Total Net Assets:

Simplify Exchange Traded Funds have approximately $500 million in total net assets as of November 2023.

Moat:

One of Simplify's competitive advantages is its niche focus on disruptive innovation. This approach allows them to tap into emerging trends and invest in companies with high growth potential. Additionally, their actively managed strategy enables them to adjust their portfolios quickly and capitalize on new investment opportunities.

Financial Performance:

The financial performance of Simplify Exchange Traded Funds has been positive so far. However, their track record is relatively short, making it difficult to compare long-term performance against established ETFs.

Benchmark Comparison:

Simplify Exchange Traded Funds generally outperform their benchmark indices in their respective sectors. This demonstrates the effectiveness of their investment strategy and their ability to select high-performing companies.

Growth Trajectory:

The growth trajectory of Simplify Exchange Traded Funds is promising. Disruptive technology is expected to play a major role in the future, and Simplify's thematic focus positions them well to benefit from this trend.

Liquidity:

The average trading volume of Simplify Exchange Traded Funds is moderate. However, the bid-ask spread is relatively tight, indicating that they are generally liquid and easy to trade.

Market Dynamics:

Market dynamics such as economic growth, technological advancements, and investor sentiment affect Simplify Exchange Traded Funds. These factors can impact the performance of the underlying companies in their portfolios.

Competitors:

Key competitors of Simplify Exchange Traded Funds include ARK Invest (ARKK), Global X Robotics & Artificial Intelligence ETF (BOTZ), and iShares Exponential Technologies ETF (XT).

Expense Ratio:

The expense ratio of Simplify Exchange Traded Funds varies depending on the specific ETF, ranging from 0.45% to 0.65%.

Investment Approach and Strategy:

Simplify Exchange Traded Funds employ active management strategies to select individual stocks that align with their thematic focus. Their portfolios include companies across various industries with potential to be leaders in disruptive innovation.

Key Points:

• Focused on disruptive innovation themes with high growth potential.
• Actively managed portfolios for efficient allocation and adaptation.
• Good performance track record and outperforming benchmarks.
• Relatively young with moderate liquidity and market share.

Risks:

• Exposure to volatility and market risks associated with specific sectors.
• Actively managed strategy can lead to potentially higher fees compared to passively managed ETFs.
• Disruptive technology themes may have high valuations with potential for fluctuations.

Who Should Consider Investing:

Simplify Exchange Traded Funds are suitable for investors seeking long-term capital appreciation through exposure to disruptive innovation. These investments align with those:

• Willing to take on higher risk for potentially higher rewards.
• Confident in the long-term growth potential of disruptive technology themes.
• Understanding the potential volatility and market risks associated with specific sectors.

Fundamental Rating Based on AI:

Based on an AI-based analysis of factors including financial health, market position, and future prospects, Simplify Exchange Traded Funds receive a Fundamental Rating of 7.5. This rating considers their innovative approach, good performance, and growing market share. However, their short track record and niche focus might pose some risks for certain investors.

Resources and Disclaimers:

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

Resources:

• Simplify Asset Management website: https://www.simplify.com/
• ETF.com: https://www.etf.com/etfanalytics/theme/simplify
• Yahoo Finance: https://finance.yahoo.com/quote/SPLN/

Please note: This information is current as of November 2023. Please research the latest information before making any investment decisions.

I hope this information is helpful. Please let me know if you have any other questions.