Simplify Macro Strategy ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The strategy merits an Average Process Pillar. The strategy earns an Average People Pillar rating. Management team members could invest more of their own money in the fund. The strategy's parent organization is industry standard, albeit with some strong attributes like continuity among portfolio managers and overall attractive fees. This earns the firm an Average Parent Pillar rating.

Analyst Rating

Simplify High Yield PLUS Credit Hedge ETF

Simplify Short Term Treasury Futures Strategy ETF

Simplify Managed Futures Strategy ETF

Simplify Exchange Traded Funds - Simplify Commodities Strategy No K-1 ETF

Simplify Aggregate Bond Plus Credit Hedge ETF

iShares Gold Trust

Simplify Risk Parity Treasury ETF

Simplify Exchange Traded Funds - Simplify Market Neutral Equity Long/Short ETF

Morningstar's evaluation of this fund's process seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle. Simplify Macro Strategy ETF earns an Average Process Pillar rating. The main driver of the rating is the firm's five-year retention rate of 100% over the period. Low expenses across its parent firm's funds, whose fees, on average, rank in the second-cheapest quintile of their respective category, also influence the rating. The pattern of low expenses at the firm suggests that it is focused on delivering strong results for investors. 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 absolute returns.  The fund will primarily invest in equity, fixed income, and alternative ETFs that are managed by the adviser. It may invest up to 20% of the fund’s portfolio in derivatives. Such derivatives include equity, treasury, commodity, and currency futures (derivative contracts that obligate the buyer or seller to transact at a set price and predetermined time) and exchange-traded and over the counter (“OTC”) put and call options on equities, treasuries, commodities, and and currencies or futures.

Average

Process

Simplify Macro Strategy ETF earns an Average People Pillar rating. The main contributor to the rating is the firm's five-year retention rate of 100%. A low expense ratio also bolsters the rating, with costs ranking in its category's second-cheapest quintile. A higher expense ratio reduces net returns, so low costs give this team an advantage. Lastly, the rating is limited by the experience of the management team, which averages four years at this fund.


The highest personal investment by any of the strategy's managers is less than $10,000. That is too low to promote alignment of their interests with the fund's investors.

People

Even though Simplify Asset Management only has a two-year track record, it has shown to be an industry-standard steward, warranting an Average Parent Pillar rating. Simplify Asset Management currently runs 35 vehicles, with a total of $1.94 billion under management and a roster of 15 fund managers. This management team, in our view, has a lack of seasoning, a commonality among young firms. The group has an average of about four years of industry experience. Even though managers' past experience has not been extensive, Simplify Asset Management benefits from low manager turnover. 

 Simplify Asset Management deserves plaudits for its commitment to below-average fees for its open-end and exchange-traded funds, which showcases its willingness to prioritize investors. The firm's average net expense ratio across all funds is in the second-lowest quintile of firms.  

 To retain an Average rating, Simplify Asset Management will be expected to uphold a consistent track record of positive investor experience.

Parent

Simplify Macro Strategy ETF

FIG is an actively managed fund-of-funds that seeks to provide absolute returns. The fund uses a macro strategy to build a risk-balanced, multi-asset portfolio.

Simplify Macro Strategy ETF is an exchange-traded fund issued in May 2022 with limited historical data. The fund aims to create a lower risk, lower volatility macro portfolio allocator by incorporating tail risk structures and curve steepeners. FIG has underperformed its peers and exhibits a significant drawdown, suggesting poor risk/reward analytics.

FIG: A Forgettable Macro Portfolio Allocator

The Simplify Macro Strategy ETF provides investors exposure to multiple futures and other strategy funds from the Simplify manager, plus a gold ETF. The ETF expands beyond these ETFs with the use of an options strategy. All of this is discussed in detail.

FIG: One ETF Holds Multiple ETFs From Simplify

Principal Real Estate Active Opportunities ETF

Harbor Dividend Growth Leaders ETF

Relative Sentiment Tactical Allocation ETF

PGIM Floating Rate Income ETF

SEI Enhanced US Large Cap Momentum Factor ETF

SEI Enhanced US Large Cap Quality Factor ETF

SEI Enhanced US Large Cap Value Factor ETF

SEI Enhanced Low Volatility US Large Cap ETF

Teucrium Agricultural NO K-1 Strategy ETF

By Michael Venuto Week of May 16, 2022 KPI Summary This week, the industry experienced 13 ETF launches and 1 closure, shifting the 1-year Open-to-Close ratio to 5.40 and total US ETFs to 2,945. ETF assets continue to trend down and haven't been current levels since Spring 2021.

ETF Industry KPI – Week of May 16, 2022

The issuer's newest fund offers a one-stop solution for current markets that combines exposure to other ETFs with a derivatives overlay.

Simplify Adds Multi-Asset Macro ETF

Simplify Asset Management today announced the launch of its newest ETF, the Simplify Macro Strategy ETF (NYSE Arca: FIG). Described in a news release as “a modern take on the balanced portfolio,” FIG is designed to be a risk-balanced portfolio of asset classes structured to pursue equity-like returns with lower volatility.

With FIG, Simplify Helps Investors Navigate the Challenge of Asset Allocation

NEW YORK--(BUSINESS WIRE)--Simplify launches Macro Strategy ETF (FIG), modern take on balanced portfolio that seeks to help overcome today's toughest asset allocation challenges

News for Simplify Macro Strategy ETF ETF (FIG)