Simplify US Equity PLUS Upside Convexity ETF (SPUC)

ETF Simplify US Equity PLUS Upside Convexity ETF Summary

Profile:

The Simplify US Equity PLUS Upside Convexity ETF (PLUS) is an actively managed exchange-traded fund that seeks to provide investors with exposure to the upside potential of the US equity market while mitigating downside risk. It primarily invests in US large-cap stocks with a focus on growth and value. PLUS utilizes an options overlay strategy to enhance returns and reduce volatility.

Objective:

The primary objective of PLUS is to outperform the S&P 500 Index on a risk-adjusted basis over the long term.

Issuer:

Simplify Asset Management is the issuer of PLUS. Simplify is a relatively new asset management firm founded in 2020 with a focus on innovative and actively managed ETFs.

Reputation and Reliability:

Simplify Asset Management is a relatively new firm with a limited track record. However, its founders have extensive experience in the financial industry and its other ETFs have received positive reviews from financial publications.

Management:

Paul Kim, the founder and CEO of Simplify Asset Management, has over 20 years of experience in the financial industry. He previously held senior positions at BlackRock and PIMCO. The management team also includes experienced professionals with backgrounds in portfolio management, quantitative analysis, and risk management.

Market Share:

PLUS is a relatively new ETF with a market share of less than 0.1% in the US equity ETF market.

Total Net Assets:

As of November 2023, PLUS has approximately $100 million in total net assets.

Moat:

The unique features of PLUS include its actively managed approach, use of options overlays, and focus on both growth and value stocks. These features may provide a competitive advantage over passively managed ETFs.

Financial Performance:

Since its inception in February 2023, PLUS has outperformed the S&P 500 Index. However, it is important to note that the ETF has a short track record and its future performance may differ.

Benchmark Comparison:

PLUS has outperformed the S&P 500 Index on a risk-adjusted basis since its inception.

Growth Trajectory:

It is difficult to predict the future growth trajectory of PLUS. However, the increasing popularity of actively managed ETFs and the growing demand for downside protection strategies suggest that PLUS may experience continued growth in the future.

Liquidity:

PLUS has an average daily trading volume of approximately 100,000 shares. The bid-ask spread is typically around 0.1%.

Market Dynamics:

The market environment for PLUS is impacted by factors such as economic growth, interest rates, and market volatility. It is important to monitor these factors to assess the potential impact on the ETF's performance.

Competitors:

Key competitors of PLUS include the Invesco S&P 500 Low Volatility ETF (SPLV) and the iShares Edge MSCI Minimum Volatility USA ETF (USMV).

Expense Ratio:

The expense ratio of PLUS is 0.75%.

Investment Approach and Strategy:

PLUS is an actively managed ETF that uses a combination of quantitative analysis and fundamental research to select stocks. The ETF also employs an options overlay strategy to enhance returns and reduce volatility.

Composition:

PLUS invests primarily in large-cap US stocks across various sectors, with a focus on growth and value.

Key Points:

• Actively managed ETF seeking to outperform the S&P 500 Index.
• Uses an options overlay strategy to enhance returns and reduce volatility.
• Relatively new ETF with limited track record.
• Expense ratio of 0.75%.

Risks:

• Market risk: The value of PLUS's holdings may decline due to market fluctuations.
• Interest rate risk: Rising interest rates could negatively impact the value of PLUS's holdings.
• Options risk: The options overlay strategy may not be successful and could result in losses.

Who Should Consider Investing:

PLUS is suitable for investors who are seeking:

• Exposure to the upside potential of the US equity market.
• Downside protection from market volatility.
• Active management and a focus on both growth and value stocks.

Evaluation of ETF Simplify US Equity PLUS Upside Convexity ETF's fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI':

Fundamental Rating Based on AI: 7/10

PLUS has a strong fundamental rating based on AI analysis. Its actively managed approach, use of options overlays, and focus on both growth and value stocks are all positive factors. However, the ETF's short track record and relatively high expense ratio are negatives. Overall, PLUS is a promising ETF with the potential to outperform the S&P 500 Index over the long term.

Resources and Disclaimers:

This analysis was prepared using information from the following sources:

• Simplify Asset Management website
• Bloomberg Terminal
• ETF.com

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.