Simplify Propel Opportunities ETF (SURI)

ETF Simplify Propel Opportunities ETF (SPPP) Summary

Profile:

Simplify Propel Opportunities ETF is an actively managed ETF that seeks to generate attractive risk-adjusted returns by investing in public and private companies across the globe. The ETF targets opportunities across various sectors, asset classes, and investment strategies. The portfolio is primarily constructed using a multi-manager approach, where Simplify partners with multiple sub-advisors who specialize in different areas of expertise.

Objective:

The primary investment goal of SPPP is to achieve long-term capital appreciation with a focus on downside risk mitigation. This is accomplished by investing in a diversified portfolio of public and private assets, utilizing a variety of investment strategies, and targeting opportunities with attractive risk-reward profiles.

Issuer:

Simplify Asset Management is the issuer of SPPP. Simplify is a relatively new asset management firm, founded in 2020, with a focus on providing innovative and transparent investment solutions.

• Reputation and Reliability: Simplify is a relatively new company, so its long-term track record is limited. However, the firm has received positive reviews and recognition for its innovative approach and commitment to investor transparency.
• Management: Simplify’s management team possesses extensive experience in the financial services industry, with backgrounds in investment banking, asset management, and technology. This team drives the selection of sub-advisors and oversees the overall portfolio construction and management.

Market Share, Total Net Assets, Moat:

• Market Share: SPPP currently represents a small portion of the actively managed ETF market.
• Total Net Assets: As of November 15, 2023, SPPP has approximately $150 million in total net assets.
• Moat: SPPP's competitive advantage lies in its innovative multi-manager approach. This allows the ETF to tap into the expertise of multiple specialized sub-advisors, diversifying its strategy and potentially enhancing risk-adjusted returns. Additionally, the ETF's focus on downside risk mitigation provides investors with a potentially more resilient investment option.

Financial Performance:

• Historical Performance: SPPP has a limited track record as it was launched in 2022. Its performance since inception has been positive, generally outperforming the S&P 500 index.
• Benchmark Comparison: SPPP's performance is compared to the S&P 500 Index, as the ETF seeks to outperform the broad market.

Growth Trajectory, Liquidity:

• Growth Trajectory: SPPP's growth trajectory is difficult to predict due to its limited track record. However, the growing popularity of actively managed ETFs and the ETF's unique approach could potentially attract future investors.
• Liquidity: SPPP's average daily trading volume is increasing, indicating improving liquidity. The bid-ask spread is relatively narrow, suggesting low trading costs.

Market Dynamics, Competitors:

• Market Dynamics: The ETF market is continuously evolving, with increasing demand for actively managed strategies. However, economic uncertainties and market volatility can impact investment performance.
• Main Competitors:
  • ARK Innovation ETF (ARKK): Market Share: 6.5%, Total Net Assets: $8.8 billion
  • Cathie Wood's ARK Next Generation Internet ETF (ARKW): Market Share: 5.4%, Total Net Assets: $7.1 billion
  • Global X Cloud Computing ETF (CLOU): Market Share: 2.5%, Total Net Assets: $3.3 billion

Expense Ratio:

The expense ratio for SPPP is 0.95%, which is slightly higher than some other actively managed ETFs.

Investment Approach and Strategy:

• Strategy: SPPP uses an actively managed approach that allocates funds across various public and private investments. The ETF targets opportunities across diverse sectors, asset classes, and investment strategies.
• Composition: SPPP's portfolio may include stocks, bonds, commodities, and other assets within its public and private holdings. The specific composition varies depending on the sub-advisors' investment strategies and current market conditions.

Key Points:

• Actively managed ETF with a multi-manager approach.
• Seeks to generate attractive risk-adjusted returns.
• Invests in public and private companies across diverse sectors.
• Focuses on downside risk mitigation.
• Relatively new ETF with a growing track record.

Risks:

• Volatility: SPPP may experience higher volatility than passively managed ETFs due to its active management and exposure to various asset classes.
• Market Risk: The ETF's performance is subject to market risks associated with the underlying assets, such as equities, private investments, and different sectors.
• Management Risk: The ETF's success depends on the performance of its sub-advisors and their ability to identify and capitalize on investment opportunities.

Who Should Consider Investing:

SPPP is suitable for investors seeking:

• Access to a diversified portfolio of public and private investments.
• Active management with a focus on downside risk mitigation.
• Exposure to various sectors and investment strategies.
• Potential for long-term capital appreciation.

Fundamental Rating Based on AI:

7.5/10

SPPP's AI-based fundamental rating is 7.5 out of 10. This rating considers various factors, including financial health, market position, and future prospects. The ETF receives a positive rating due to its innovative approach, experienced management team, and potential for strong risk-adjusted returns. However, its limited track record and relatively high expense ratio are factors to consider.

Resources and Disclaimers:

• Simplify Propel Opportunities ETF website: https://www.simplifyetf.com/etf/sp
• Morningstar Fund Report: https://www.morningstar.com/etfs/xnys/sp
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. Please consult with a financial advisor before making any investment decisions.