Simplify Commodities Strategy No K-1 ETF (HARD)

Overview

The Simplify Commodities Strategy No K-1 ETF (HARD) is an actively managed ETF that seeks to provide investors with commodity exposure while avoiding the complexities of K-1 tax forms. It primarily invests in commodity futures contracts and other commodity-related instruments.

Reputation and Reliability

Simplify Asset Management is a relatively new but innovative ETF provider focused on offering strategies with defined outcomes. They are known for their options-based and alternative investment approaches.

Management Expertise

Simplify Asset Management's team consists of experienced professionals with expertise in options, derivatives, and quantitative strategies. Their management team is highly experienced in their field.

Goal

The investment objective of HARD is to provide investors with commodity exposure while mitigating the tax complexities associated with traditional commodity investments.

Investment Approach and Strategy

Strategy: HARD is actively managed and does not track a specific index. It invests in a mix of commodity futures and other commodity-related investments to provide broad commodity exposure.

Composition The ETF holds commodity futures contracts across various sectors, including energy, agriculture, and metals, and may also invest in swap agreements, options, and other derivative instruments.

Market Share: Data unavailable to determine Simplify Commodities Strategy No K-1 ETFu2019s market share.

Total Net Assets (AUM): 66674740

Key Competitors

• Invesco DB Commodity Index Tracking Fund (DBC)
• iShares GSCI Commodity Indexed Trust (GSG)
• Teucrium Wheat Fund (WEAT)

Competitive Landscape

The commodity ETF market is competitive, with several large players offering broad commodity exposure. HARD differentiates itself by being actively managed and aiming to avoid K-1 tax forms, which can be appealing to certain investors. DBC and GSG are passively managed and track broad commodity indices, offering lower expense ratios but potentially less flexibility. Teucrium Wheat Fund (WEAT) is an example of a competitor that invests in a single commodity - wheat.

Historical Performance: Historical performance data is not directly available in this format.

Benchmark Comparison: Benchmark comparison requires specific benchmark data and is not directly available in this format.

Expense Ratio: 0.65

Average Trading Volume

The average trading volume is approximately 23,362 shares, reflecting moderate liquidity.

Bid-Ask Spread

The typical bid-ask spread is around 0.10%, indicating moderate trading costs.

Market Environment Factors

Commodity prices are influenced by various factors, including global economic growth, supply and demand dynamics, geopolitical events, and weather patterns.

Growth Trajectory

The ETF's growth trajectory depends on its ability to attract assets and generate returns in line with its investment objective. Changes to strategy and holdings can occur at the discretion of the fund's managers.

Competitive Edge

HARD's competitive advantage lies in its active management and K-1 avoidance. Active management allows the fund to potentially outperform passively managed commodity ETFs by adjusting its holdings based on market conditions. The avoidance of K-1 tax forms simplifies tax reporting for investors. This actively managed ETF could appeal to investors who are seeking commodity exposure without the added tax complexity of K-1 forms. Ultimately this offers a differentiated approach within the commodities ETF space.

Volatility

Commodity investments are inherently volatile due to fluctuations in supply, demand, and geopolitical factors.

Market Risk

The fund is subject to commodity market risk, meaning that its performance is directly tied to the performance of commodity prices. Specific risks include price volatility, geopolitical risk, and regulatory changes.

Ideal Investor Profile

The ideal investor for HARD is someone seeking commodity exposure as part of a diversified portfolio but wants to avoid the complexities of K-1 tax forms. They should also be comfortable with active management and its associated costs.

Market Risk

HARD is suitable for investors with a moderate to high risk tolerance who are seeking long-term commodity exposure and are willing to pay a higher expense ratio for active management and K-1 avoidance.

The Simplify Commodities Strategy No K-1 ETF (HARD) offers a unique approach to commodity investing by combining active management with K-1 tax form avoidance. It invests in a diversified basket of commodity futures contracts, offering exposure to energy, agriculture, and metals. While it has a higher expense ratio compared to passively managed commodity ETFs, it provides investors with potentially better risk-adjusted returns through active management and simplified tax reporting. This ETF suits investors looking for diversified commodity exposure with the convenience of standard tax reporting and actively managed strategy.

Data Sources:

• Simplify Asset Management Website
• ETF.com
• Bloomberg
• SEC Filings

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data may not be precise and is subject to change. Past performance is not indicative of future results.