Simplify Stable Income ETF

BUCK seeks to provide monthly income by holding a short-term portfolio of income-producing US Treasurys and utilizing an option spread writing strategy.

I initially rated BUCK as Sell due to volatility and unpredictability, but new information regarding BUCK's operational strategy prompted me to upgrade my rating. BUCK offers 2-3% higher yields than short-term US treasuries, making it a viable high-yield bond alternative with lower volatility. Though it's still not suitable as a short-term cash alternative, income investors can appreciate BUCK's higher income and lower volatility compared to traditional high yield bonds.

BUCK: This Is Not A Cash Alternative (Rating Upgrade)

NEW YORK--(BUSINESS WIRE)--Simplify Stable Income ETF (BUCK) has been renamed as Simplify Treasury Option Income ETF, effective October 29, 2024.

New Fund Name for Simplify Stable Income ETF (BUCK)

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As clients inquire about next year's income, I recommend three favorite income funds to include in their portfolios. These funds are designed to generate reliable income and are primarily non-equity based, offering diversification. The funds have been selected based on their performance, stability, and potential to provide consistent returns.

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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 2024

Treasury Bill yields have been declining due to anticipated interest rate cuts, prompting investors to seek alternatives to money market funds. BUCK's strategy leverages high demand for Treasury options to generate additional income, focusing on convexity risk over credit risk. Investors seeking a cash alternative with higher total returns and minimal credit risk should consider BUCK, despite accepting some volatility.

BUCK The Trend: Seek Attractive Yields Without Chasing Credit Risk

BUCK's option writing strategy has not consistently outperformed U.S. treasuries, despite the higher volatility and risk. The fund's NAV decline and tie to SVOL raise concerns about its long-term viability and investor interest. Consider alternatives like covered call equities for similar yields and higher total returns or U.S. treasuries and CSHI for lower volatility.

BUCK: The Risks Have Not Paid Off

The BUCK ETF is marketed as a cash replacement tool. It writes options on interest rate indices and bond futures to boost treasury returns. BUCK's 1-year total return of 6.3% is comparable to JPST but it exhibits higher price volatility than comparable cash replacement funds. I personally prefer JPST and JAAA's modest credit exposures, as credit markets are relatively easier to monitor.

BUCK: Harvesting Interest Rate Volatility Premium To Boost Treasury Returns

BUCK focuses on short-term treasuries and uses option strategies to boost income. The fund has a 6.8% dividend yield and relatively low risk and volatility compared to other bond sub-asset classes. However, BUCK's strategy has not been effective in the past and has underperformed t-bills since inception.

BUCK: Income ETF Focusing On T-Bills And Options, Ineffective Strategy

BUCK ETF seeks to boost the yield on short-term treasuries through option strategies. The fund uses a combination of treasury bills and options on bond futures. BUCK has underperformed peers like SGOV (simple treasury ETF) over the past year. While lower risk, BUCK's option plays haven't delivered positive net results.

BUCK: Yield Enhancement Via Bond Futures

Simplify Stable Income ETF uses option writing to enhance income for fixed income investors. The ETF employs multiple option strategies, including call spread and put spread sub-strategies. BUCK has $117m in AUM and has a TTM yield of 6.4%, with 35bps in fees. Holdings and Payouts are reviewed before comparing BUCK to other ETFs. I rate BUCK at best as a Hold as similar ETFs with longer histories have better results, including another ETF from Simplify.

First Look At The BUCK ETF From Simplify

Simplify launched the Simplify Stable Income ETF in October 2022, and it has performed well since then. Its yield outpaces T-Bills, and its risk is not much higher, presenting it favorably over T-Bills alone. The Simplify Stable Income ETF offers a lower risk option compared to the Simplify Enhanced Income ETF, making it far more appealing for conservative investors.

BUCK: Simplify's Cash ETF Catering To Conservative Investors

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Simplify Provides Estimated Capital Gain Distribution Information for 2023

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VettaFi's Fixed Income Symposium, happening on July 24th, is fast approaching. The symposium will bring together industry thought leaders.

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Tua is not only the name of the potential MVP quarterback of the Miami Dolphins, but also the ticker for a new fixed income strategy from Simplify. Simplify Asset Management today announced the launch of the Simplify Short Term Treasury Futures Strategy ETF (NYSE Arca: TUA).

Simplify Launches Short-Term Treasury Futures Strategy ETF, TUA

Simplify Asset Management has launched two new income-focused ETFs designed to enhance portfolio yield without significant credit or duration exposure. The Simplify Stable Income ETF (NYSE Arca: BUCK) and the Simplify Enhanced Income ETF (NYSE Arca: HIGH) begin trading today on the NYSE Arca.

Simplify Adds BUCK & HIGH to Suite of Income-Focused ETFS

NEW YORK--(BUSINESS WIRE)--Simplify expands income-focused ETF offerings with launch of enhanced income fund (HIGH) and stable income fund (BUCK)

News for Simplify Stable Income ETF ETF (BUCK)