JAAA - Checking In On HIGH An Options Spreads Fund

2024-07-17 00:46:35 ET

Summary

• HIGH is an ETF from Simplify Asset Management. It aims to generate monthly income through short-dated option spreads on various equities.
• The core holdings are Treasury Bills with an overlay of constantly changing options positions.
• HIGH has had respectable performance in 2024, outperforming Treasury bonds by 70 bps with a low-risk profile, suitable for cash parking instruments.
• HIGH is considered a good holding for "cash parking instruments," a category for low-risk, low-return investments. It can be used alongside other cash parking options like SGOV, JAAA, and MINT to diversify a portfolio.

Thesis

Simplify Asset Management has a number of very interesting funds in its purview. The commonality across the product offering is the complexity overlay that is present in most Simplify ETFs. The Simplify Enhanced Income ETF ( HIGH ) is such a name, and we started covering the vehicle last year, when we described the fund structure and our views on the name....

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