 Simplify
High Yield Plus Credit ETF (CDX) is an actively managed
exchange-traded fund (ETF) that seeks to provide investors with high
yield, high quality income and capital appreciation potential. The
fund invests primarily in a diversified portfolio of
below-investment-grade corporate bonds and other income-producing
securities.
The ETF is managed by Simplify Asset Management, a
firm founded in 2020 by Paul Kim, who previously served as co-founder
and chief investment officer of ETF issuer IndexIQ. Simplify Asset
Management seeks to provide innovative solutions to investors by
simplifying complex investment strategies.
As of March 23,
2023, the fund had total net assets of approximately $16.3 million and
held 86 positions. The top holdings of the fund were in the energy,
healthcare, and technology sectors, with the largest individual
holdings being 5.06% in a bond issued by Altice Luxembourg SA and
3.97% in a bond issued by Frontier Communications Corp.
The
fund has an expense ratio of 0.45%, which is in line with other
actively managed high-yield bond ETFs. CDX offers monthly dividends
and has a distribution yield of 5.5% as of March 23, 2023. The fund
has a duration of 3.64 years, indicating moderate interest rate
sensitivity.
Investors considering CDX should be aware that the
fund invests in below-investment-grade corporate bonds, which are
generally considered to be high risk. These bonds may be subject to
default or credit rating downgrades, which could result in a decline
in the value of the fund. The fund may also be affected by changes in
interest rates, inflation, and other economic factors. As with all
investments, it is important to carefully consider the risks and
potential rewards before investing in CDX.
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