Simplify Aggregate Bond ETF

AGGH

Market cap $308M

AGGH offers active management over a core bond index, enhancing yield via options and curve positioning while maintaining benchmark-like risk. Current yield curve normalization and bull steepening regime favor AGGH's 7–10 year duration, supporting carry and roll-down benefits. Options overlays provide extra income but do not eliminate duration risk. Curve shifts or rate spikes remain key risks to monitor.

AGGH offers a unique blend of passive aggregate bond exposure and active credit hedging, aiming to reduce drawdowns during credit stress. The ETF closely tracks the Bloomberg US Aggregate Bond Index, with slight outperformance at credit market peaks due to its hedging overlay. Current stable investment grade spreads and a neutral Fed outlook favor AGGH's ability to capture appreciation with minimal hedging costs.

Simplify Aggregate Bond ETF has evolved significantly, now offering high yields and outperforming its index, making it a strong complement to core bond holdings. AGGH's strategy includes a core bond allocation, bond futures, and interest rate swaps, providing unique access to CTA-level derivatives for retail investors. The fund's dynamic management and high payout have addressed previous concerns, earning it an upgrade to a "buy" rating for aggressive and moderate investors.

NEW YORK--(BUSINESS WIRE)--Simplify announced today that it expects to deliver capital gains distributions across six Simplify ETFs.

With the Fed recalibrating its monetary policy, it is time for fixed income investors to recalibrate their allocation to bonds to take advantage of this easing cycle. The Simplify Aggregate Bond ETF is a yield-enhanced version of the Bloomberg U.S. Aggregate Bond Index, which seeks a higher yield while also a higher total return with a similar risk profile. Investors looking for broad fixed income exposure in a core bond portfolio with the potential for enhanced yield and seeking higher total return with a similar risk profile to the U.S. Aggregate Bond Index should consider AGGH.

AGGH aims to maximize total return through investment-grade bonds and option overlays, and has outperformed aggregate bond indices. Performances, however, can be unpredictable and positions in the fund will expose you to other markets that you may be unaware of. I rate AGGH a Hold. This should be a bond yield enhancer that you hold according to your trust in the fund managers.

NEW YORK--(BUSINESS WIRE)--Simplify announces net asset value restatement for AGGH and SVOL ETFs.

AGGH has outperformed AGG since the fund launched in 2022. The fund is actively managed and uses several strategies to boost performance. However, it dropped sharply in April. This article looks at why it may be a buying opportunity.

Simplify Aggregate Bond ETF is an actively managed investment-grade bond ETF. AGGH uses derivatives and leverage and has a high turnover. An overview of the fund follows.

Simplify Aggregate Bond ETF offers bond exposure with reduced risk through hedging mechanisms and active management. The AGGH ETF's portfolio includes bond ETFs, hedging mechanisms such as covered calls and protective puts, and credit default swaps. AGGH has outperformed its benchmark and offers a high distribution yield, but its complexity and high portfolio turnover may not appeal to all investors.