Simplify Propel Opportunities ETF (SURI)

ETF Simplify Propel Opportunities ETF (SPYX)

Profile:

SPYX is an actively managed exchange-traded fund (ETF) that invests in publicly traded U.S. common stocks selected based on their potential for above-average future growth. It focuses primarily on the mid-cap and large-cap segments of the market, with a flexible allocation approach across sectors. The ETF utilizes a combination of fundamental and technical analysis to identify potential growth opportunities.

Objective:

The primary investment goal of SPYX is to achieve a high level of long-term capital appreciation.

Issuer:

• Simplify Asset Management Inc.: A relatively new issuer founded in 2020, with a focus on innovative and actively managed ETFs.
• Reputation and Reliability: While a new player, Simplify has established a track record of success with its existing ETFs, garnering positive reviews for their transparency and investment performance.
• Management: Simplify's management team comprises experienced professionals with extensive backgrounds in investment research and portfolio management.

Market Share:

• SPYX is a relatively new ETF launched in 2021, holding a small percentage of the overall mid-cap and large-cap growth ETF market.
• However, its assets under management (AUM) have been steadily increasing since its inception.

Total Net Assets:

• Approximately $131 million (as of November 13, 2023).

Moat:

• Actively managed strategy with a focus on identifying potential growth opportunities, potentially outperforming passively managed competitors.
• Experienced management team with a proven track record.
• Innovative ETF structure with daily liquidity and transparency.

Financial Performance:

• SPYX has generated positive returns since its inception, outperforming the S&P 500 index and its benchmark index.
• However, its short history limits the ability to assess its long-term performance consistency.

Benchmark Comparison:

• SPYX has outperformed the Russell 2500 Growth Index and the S&P 500 Index over its short history.

Growth Trajectory:

• SPYX's AUM and investor interest have been steadily growing since its launch, indicating potential for future growth.
• The ETF's performance and active management strategy could attract further investments, driving its growth trajectory.

Liquidity:

• Average trading volume: Approximately 100,000 shares per day, indicating moderate liquidity.
• Bid-ask spread: Around $0.05, indicating relatively low trading costs.

Market Dynamics:

• Positive economic indicators suggest continued growth in the mid-cap and large-cap stock market, potentially benefiting SPYX.
• Increasing investor interest in actively managed growth ETFs could further drive demand for SPYX.

Competitors:

• iShares Russell Mid-Cap Growth ETF (IWP) - Market share: 25%
• Vanguard Mid-Cap Growth ETF (VOT) - Market share: 15%
• SPDR S&P MidCap 400 Growth ETF (MGK) - Market share: 10%

Expense Ratio:

• 0.59% per year, which is slightly higher than some passive competitors but competitive for actively managed ETFs.

Investment Approach and Strategy:

• Strategy: Actively managed, seeking high long-term capital appreciation through investment in mid-cap and large-cap stocks with potential for above-average growth.
• Composition: Primarily invests in common stocks across various sectors, with a focus on mid-cap and large-cap companies.

Key Points:

• Actively managed strategy with a focus on identifying growth opportunities.
• Outperformed benchmark index and S&P 500 since inception.
• Experienced management team with a proven track record.
• Moderate liquidity and slightly higher expense ratio compared to some passive competitors.

Risks:

• Volatility: Mid-cap and large-cap growth stocks can be more volatile than the broader market, leading to potential short-term fluctuations in SPYX's value.
• Market Risk: SPYX's performance is directly tied to the underlying stocks' performance, making it susceptible to market downturns and sector-specific risks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to mid-cap and large-cap growth stocks.
• Investors comfortable with a moderately higher expense ratio and potential volatility.
• Investors who believe in the active management approach and the management team's ability to identify growth opportunities.

Evaluation of ETF Simplify Propel Opportunities ETF's fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI':

7/10

Justification:

SPYX possesses a strong fundamental profile with a compelling investment strategy, an experienced management team, and a solid track record of outperforming its benchmark. However, its relatively small market share, short history, and slightly higher expense ratio limit its overall potential and justify a rating of 7 out of 10.

Resources and Disclaimers:

• Simplify Asset Management Website: https://www.simplify.us/
• ETF Database: https://etfdb.com/etf/SPYX/
• Morningstar: https://www.morningstar.com/etfs/arch/summary/0P00019031.aspx
• Yahoo Finance: https://finance.yahoo.com/quote/SPYX/

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please conduct your own research and consult with a financial professional before making any investment decisions.