Key stats
About Simplify Exchange Traded Funds Simplify Target 15 Distribution 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.
XV aims to provide monthly distributions at an annualized rate (after fees and expenses) of 15% but not defined, along with some downside hedge over a one-year period. The actively managed fund consists of i) US Government bonds of any maturity and ii) an out-of-the-money barrier put spread strategy on the worst performing out of the three reference equity ETFs: SPY, QQQ, and IWM. The fund adviser targets a bond portfolio duration of two years or less and utilizes OTC and listed options with one-year maturities to employ the option spread strategies. The fund seeks to provide a barrier such that investors are only exposed to the downside if the worst-performing reference ETF breaks below the 10%-30% barrier. After the barrier level is breached, investors take on the full downside of the funds returns. The adviser may use non-barrier option spread strategies to pursue the 15% distribution goal. The fund must be held during the entire return period to pursue intended results.
Classification
What's in the fund
Exposure type
Government
Stock breakdown by region