Simplify Managed Futures ETF Delivers 50% Return Since March 2022 with 3.5% Summer Gains
Simplify Managed Futures ETF returned 50% since March 2022, with 3.5% gains in June, July and August 2022, holds $1.1B, charges 0.75% expense ratio. Its trend-following long/short futures approach gained in the 2022 equity selloff, trailed stocks in bull markets, with uneven distributions ($1.64 in 2023 vs $0.74 in 2024).
1. Performance Since Inception
Since its March 2022 launch, CTA has returned 50% while the S&P 500 ETF has gained roughly 80%, illustrating its relative underperformance in a sustained bull market.
2. Bear Market Gains
During the 2022 equity selloff, CTA posted roughly 3.5% monthly gains in June, July and August as its trend-following model profited from sustained downtrends across global markets.
3. Strategy Overview
The fund employs trend-following long and short positions across commodity, currency and fixed-income futures to generate returns uncorrelated with traditional stocks and bonds, harnessing directional market trends rather than buy-and-hold exposure.
4. Tradeoffs and Costs
With $1.1 billion in assets under management and a 0.75% expense ratio, CTA can whipsaw in sideways markets and has inconsistent distributions, paying $1.64 per share in 2023 versus $0.74 in 2024.