Key stats
About Simplify Exchange Traded Funds Simplify Barrier Income ETF
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Inception date
Apr 14, 2025
Structure
Open-Ended Fund
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Primary advisor
Simplify Asset Management, Inc.
SBAR seeks to provide an alternative to a fixed income strategy. To actively pursue its objective, the fund uses two income strategies. One strategy holds US government securities with an average duration of two years or less. Strategy two employs a laddered selection of income generating, barrier put spreads, using OTC options, swaps, and forward contracts. The purpose aims to define the downside risk at a barrier of 30% over a one-year period. To pursue this strategy the fund selects the worst performing out of the three major US equity reference ETFs: SPDR S&P 500 ETF (SPY), Invesco QQQ (QQQ), and iShares Russell 2000 ETF (IWM). Should the reference ETF fall below the 30% barrier, investors are exposed to the remaining 70% downside risk. At times, the adviser may use non-barrier option spread strategies. The fund must be held during the entire return period to pursue the intended results. The fund adviser has not set rebalancing or resetting cycle.
Classification
What's in the fund
Exposure type
Government
Stock breakdown by region
Top 10 holdings