HIGH: Get Out While You Can

2025-06-17 06:11:35 ET

Last year, I wrote a cautious article on the Simplify Enhanced Income ETF ( HIGH ). I was concerned about the asset manager's penchant for drifting away from their mandates in several products such as the Simplify Aggregate Bond PLUS Credit Hedge ETF ( AGGH ), which was marketed as a 'core plus' bond fund but run like an unconstrained hedge fund, or the Simplify Volatility Premium ETF ( SVOL ), which was supposed to be short VIX futures to generate yield, but deviated into other asset classes. Furthermore, I was concerned about the HIGH ETF's strategy, which was being marketed as an "enhanced yield" product by selling options on credit and equity indices. In my opinion, selling options on indices is akin to selling insurance policies and is best undertaken by sophisticated institutions, rather than retail investors....

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