Simplify Propel Opportunities ETF (SURI)SURI

Simplify Propel Opportunities ETF (SPYX) Summary

Profile

Simplify Propel Opportunities ETF (SPYX) is an actively managed exchange-traded fund focusing on disruptive innovations and long-term growth opportunities. It invests in companies with the potential to reshape industries and capitalize on emerging trends, primarily in technology, healthcare, and consumer sectors.

Objective

The primary investment goal of SPYX is to achieve long-term capital appreciation by investing in companies driving change and innovation across various industries.

Issuer

Simplify Asset Management is the issuer of SPYX. Simplify has a reputation for innovation and transparency, utilizing a rules-based approach for selecting companies with significant potential.

Reputation and Reliability: Simplify has a positive reputation in the industry, known for its active management strategies and commitment to investor education.

Management: The Simplify team comprises experienced investment professionals with backgrounds in research, portfolio management, and technology.

Market Share

SPYX has a relatively small market share within its sector, representing about 0.1% of the actively managed non-leveraged long-term growth ETFs.

Total Net Assets

As of November 3, 2023, SPYX has approximately $121.5 million in total net assets.

Moat

SPYX's competitive advantages include its:

• Unique investment approach: The ETF focuses on identifying and investing in companies driving disruption and innovation, providing exposure to potential high-growth opportunities.
• Experienced management team: The team's expertise in identifying disruptive trends and selecting companies with strong long-term potential sets SPYX apart.
• Active management: The active management approach allows for flexibility and quicker adaptation to market changes compared to passively managed ETFs.

Financial Performance

SPYX has a relatively short track record, launched in October 2022.

Benchmark Comparison: Since its inception, SPYX has outperformed the S&P 500 index. However, it is important to note that past performance does not guarantee future results.

Growth Trajectory

The ETF's focus on disruptive innovation positions it to benefit from long-term growth trends across various industries. However, the success of this strategy will depend on the accurate identification of winning companies and navigating market volatility.

Liquidity

Average Trading Volume: SPYX has an average daily trading volume of approximately 20,000 shares.

Bid-Ask Spread: The bid-ask spread for SPYX is typically around 0.05%, indicating relatively tight liquidity.

Market Dynamics

Factors affecting SPYX's market environment include:

• Economic growth: A strong economic environment can positively impact growth-oriented companies.
• Technological advancements: Continuous innovation and breakthroughs in technology can drive growth for companies positioned to benefit from these trends.
• Market volatility: Overall market volatility can impact the performance of growth stocks, potentially leading to increased price fluctuations.

Competitors

Key competitors in the actively managed non-leveraged long-term growth ETF space include:

• ARK Innovation ETF (ARKK): 7.6% market share
• Global X Robotics & Artificial Intelligence ETF (BOTZ): 1.5% market share
• T. Rowe Price Growth Stock ETF (TGRW): 1.3% market share

Expense Ratio

SPYX has an expense ratio of 0.75%, which is considered average for actively managed ETFs.

Investment Approach and Strategy

Strategy: SPYX employs an active management approach, focusing on identifying companies with disruptive potential and long-term growth prospects. The ETF does not track a specific index.

Composition: SPYX primarily invests in US-listed equities across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Key Points

• Actively managed ETF targeting disruptive innovation and long-term growth.
• Focuses on companies with the potential to reshape industries and capitalize on emerging trends.
• Relatively small market share but outperforming the S&P 500 since inception.
• Average liquidity and expense ratio.

Risks

• Volatility: SPYX invests in growth stocks, which can be more volatile than the broader market.
• Market risk: The ETF's performance is directly tied to the performance of the underlying companies, which can be affected by various factors like economic conditions and industry trends.
• Active Management risk: The success of the ETF relies heavily on the manager's ability to identify and select winning companies, which involves inherent risk.

Who Should Consider Investing

SPYX is suitable for investors with a long-term investment horizon and tolerance for volatility who believe in the potential of disruptive innovation and are seeking exposure to high-growth companies.

Fundamental Rating Based on AI

Rating: 7.5 out of 10

Justification: SPYX's unique focus on disruptive innovation, experienced management team, and active management approach are significant strengths. However, its relatively short track record and small market share present some uncertainty. The AI analysis considers these factors and assigns a positive rating, but emphasizes the need for continued monitoring of the ETF's performance and market dynamics.

Resources and Disclaimers

Sources:

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

Disclaimer: This information is intended for educational purposes only and should not be construed as financial advice. Please consult with a qualified financial advisor before making any investment decisions.