Simplify Opportunistic Income ETF

Simplify Opportunistic Income ETF (CRDT) is an actively managed fund. It mixes high-yield ("junk") and investment-grade bonds, preferred stock and asset-backed debt with dividend-paying stocks, which made up about 39% of assets as of June 30, 2026. It uses derivatives to adjust interest-rate and default risk. It paid a 7.14% yield over the 12 months to October 27, 2026, in monthly payments. Its 0.97% expense ratio is far above the 0.08% average for similar bond funds.

• Over the year to Oct 27, 2026, CRDT returned -6.5%, 8th of 8 among similar funds.
• Its worst full calendar year was 2025 (-0.7%); its best was 2024 (+5.2%).
• The deepest fall in its price history was 15.6% (Aug 13, 2026 to Oct 14, 2026), not yet recovered.

As of Jun 30, 2026, the fund held 39 securities; the ten largest made up 43.74% of assets.

The bonds mature in 11.8 years on average (weighted by size), with an average coupon of 4.2%.

• Over the three months to Jun 30, 2026, investors withdrew a net $1.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.00%, +2.85%, -1.02%.

CRDT does not track an index. Its aim is to maximize total return. Simplify, the adviser, splits the work with a sub-adviser. The sub-adviser picks the bonds and other income securities using bottom-up research, which means it studies individual issuers. Simplify runs the derivatives and handles trading. The fund can own US and foreign corporate bonds of any quality, preferred stock, Treasuries and bank loans. Up to 15% can go into hard-to-sell assets such as distressed or private investments. No more than 10% can be in debt rated CCC or lower. Up to 25% can be outside the US, with no more than 10% in emerging markets. Portfolio turnover was 108%, so holdings change often.

As of June 30, 2026, the fund held 46 positions: 39% common stocks, 21% bonds and notes, 16% preferred stock and 19% asset-backed securities, including collateralized loan obligations (CLOs). Rithm Capital was the largest holding at 10.7%, followed by Dynex Capital, MFA Financial and Annaly. The 10 largest holdings made up 44% of the fund.

Simplify can use Treasury futures, swaptions (options to enter a swap), credit default swaps and total return swaps to hedge or reshape risk. On June 30, 2026, the fund held 2-year and 5-year Treasury futures, options on SOFR futures and call options on QQQ. With derivatives, there is a risk that the other party fails to pay.

• CRDT charges 0.97% a year, versus an average of 0.08% for the similar funds below (8th of 8, cheapest first).
• Of that, 0.95% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $99 in the first year and $1,192 over 10 years (assuming a 5% annual return).

It offers high monthly income, but it holds a large slice of stocks and junk-rated debt, charges a high fee and has a short record, so it fits better as a small add-on than as a core bond holding.

CRDT could add monthly income to a retirement portfolio, but it carries more risk than a typical bond fund. As of June 30, 2026, about 39% of assets were common stocks. Much of the rest was junk bonds, preferred stock and asset-backed debt. It launched in June 2023, so it has no record through the 2008, 2020 or 2022 downturns. Its weakest full calendar year was 2025, at −0.38%. Its deepest drop was 15.6%, from August 13 to October 14, 2026, and it had not recovered as of October 27, 2026. Anyone selling shares for cash during a drop like that locks in lower prices.

The yield was 7.14% over the 12 months to October 27, 2026, paid monthly. Costs are high. In the SEC's standard $10,000 example, fees come to $99 after one year and $1,192 after 10. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).