The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  Simplify Opportunistic Income ETF to a Morningstar Medalist Rating of Neutral.  The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's inexperienced portfolio management team drives the strategy's Below Average People Pillar. The fund's assessment garners an Average Process Pillar rating. The strategy's parent organization is industry standard, albeit with some strong attributes like high portfolio manager retention, but is held back by relatively short-tenured portfolio managers. This earns the firm an Average Parent Pillar rating.

Analyst Rating

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Core & Main

Morningstar's style-agnostic investment process evaluation looks for strategies that should be able to outperform their Morningstar Category index on a risk-adjusted basis over time. Simplify Opportunistic Income ETF earns an Average Process Pillar rating.    The predominant contributor to the rating is the firm's five-year retention rate of 100% over the period. The size of the portfolio management team also strengthens the process. With four portfolio managers, the fund is reasonably well-resourced. Lastly, the process is limited by the experience of the management team, which averages four years at this fund.

 The investment strategy as stated in the fund's prospectus is as follows: 


The investment seeks to provide current income; Long-term capital appreciation is a secondary objective.  The fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing primarily in fixed income securities. Under normal circumstances, the fund invests primarily in income producing securities, including U.S. and foreign investment grade and high yield (“junk”) corporate bonds and preferred stock, bonds issued by the U.S. Treasury, and and bank loans.

Average

Process

Simplify Opportunistic Income ETF earns a Below Average People Pillar rating. The team is supported by the firm's five-year retention rate of 100%. However, the rating is limited by the experience of the management team, which averages four years at this fund. The number of months that the management team has been running this vehicle together also holds the rating back. Since this is a newly incepted product, more time is needed to monitor the team's capability at executing the strategy.


Paul Kim brings nine years of listed portfolio management experience to the team. The average Morningstar Rating of the strategies they currently manage is 2.0 stars, reflecting below-average risk-adjusted performance relative to category peers. Although the team size is solid, together they are largely unproven. With three additional supporting listed managers, the team averages four years of listed portfolio management experience. None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors.

Below Average

People

Simplify Asset Management has some investor-friendly attributes, but other attributes warrant caution, leading to an Average Parent Pillar rating. Portfolio management turnover has been minimal at the firm since the firm's inception. Long-term stability signals a strong investment culture. Only two years of average tenure among Simplify Asset Management's longest-tenured managers gives us pause. In isolation, seasoned teams tend to have more experience to draw upon should they need to navigate turbulent market conditions. The Simplify Asset Management roster of open-end and exchange-traded funds has had below-average risk-adjusted performance, as evidenced by its average three-year Morningstar Rating of 2.0 stars.

Parent

Simplify Opportunistic Income Etf

CRDT is an actively managed fund that holds various fixed income securities from developed markets. The fund has no maturity and credit rating limitation. The fund aims to provide current income, long-term capital appreciation is a secondary objective.

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NEW YORK--(BUSINESS WIRE)--Simplify announced today that it expects to deliver capital gains distributions across six Simplify ETFs.

Simplify Provides Estimated Capital Gain Distribution Information for 2023

Simplify Asset Management has expanded its fund lineup with the new Simplify US Equity PLUS QIS ETF (NYSE Arca: SPQ). The fund seeks long-term capital appreciation by overlaying a basket of quantitative investment strategies on top of core U.S. equity exposure.

Simplify's SPQ Adds QIS Overlay to Core US Equity Exposure

NEW YORK--(BUSINESS WIRE)--Simplify to ring NYSE Closing Bell on August 25th to celebrate successful launch of the Simplify Opportunistic Income ETF (CRDT).

Simplify and Partners to Ring the Closing Bell at the NYSE to Mark the Recent Successful Launch of the Simplify Opportunistic Income ETF (CRDT)

Simplify Asset Management has launched the Simplify Multi-QIS Alternative ETF (NYSE Arca: QIS). The new ETF invests in a diversified portfolio of third-party quantitative investment strategies across equities, interest rates, commodities, and currencies.

Simplify Launches Multi-Quantitative Strategy ETF With QIS

Simplify Asset Management announced the launch of the Simplify Opportunistic Income ETF (NYSE Arca: CRDT). The actively managed opportunistic credit ETF focuses on security selection within the high yield, investment-grade, and distressed debt universes.

Simplify Launches Active Opportunistic Credit ETF With CRDT

NEW YORK--(BUSINESS WIRE)--Simplify launches CRDT ETF. Active opportunistic credit strategy focuses on high-yield, investment grade, distressed for current income opportunities.

Simplify Launches Opportunistic Income ETF (CRDT)

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