Simplify Health Care ETF

Simplify Health Care ETF (PINK) is an actively managed fund that picks 50 to 100 mostly US health care stocks instead of tracking an index. Its most unusual feature is that its adviser, Simplify Asset Management, donates its annual management fee to the Susan G. Komen Breast Cancer Foundation. The trade-off is cost. Its expense ratio (annual fee) is 0.51%, compared with 0.08% to 0.09% at large health care funds such as XLV and VHT.

• Over the year to Oct 27, 2026, PINK returned +21.1%, 6th of 9 among similar funds.
• Its 5-year annualized return was +9.8%.
• Its worst full calendar year was 2022 (-4.4%); its best was 2025 (+24.4%).
• The deepest fall in its price history was 18.8% (Sep 19, 2024 to Apr 8, 2025), recovered by Oct 15, 2025.

As of Jun 30, 2026, the fund held 53 securities; the ten largest made up 56.54% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $81.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.79%, +8.28%, +4.00%.

PINK does not follow an index. Under normal conditions it puts at least 80% of its assets in US health care companies. It defines these using the Global Industry Classification Standard (GICS) health care sector, a widely used system for sorting companies by industry. It can buy companies of any size, including micro-caps, which are very small companies. It holds 50 to 100 stocks. As of June 30, 2026, it owned 53.

The managers use bottom-up research, which means studying one company at a time. They mainly look for growth: companies whose earnings are expected to rise faster than inflation and the economy. When stock prices look stretched, they may lean toward cheaper "value" stocks. They favor companies developing new medicines and those that cut costs or improve quality in health care. The portfolio is concentrated. The top 10 holdings made up 56.5% of assets, led by PureCycle Technologies (6.9%), United Therapeutics (6.9%), Novo Nordisk (6.8%) and Eli Lilly (5.9%). Turnover was 171%, a sign of heavy trading.

As of June 30, 2026, the fund held 99.6% stocks, 0.44% cash and no derivatives. It may park cash in affiliated money market ETFs or repurchase agreements. The Komen Foundation has no say in how the fund is run. The fund is not a charitable trust, and it can hold companies that have nothing to do with breast cancer.

• PINK charges 0.51% a year, versus an average of 0.36% for the similar funds below (7th of 9, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $52 in the first year and $641 over 10 years (assuming a 5% annual return).

PINK is a concentrated, actively traded fund in a single sector, so it fits as a small add-on to a diversified core rather than a foundation.

PINK could add actively chosen health care exposure, but its record is short. It launched in October 2021, so it has no history from the 2008 or 2020 crashes. In the 2022 bear market it fell 18.4% between April 20 and June 16, 2022, and took about 19 months from that low to recover. Its deepest drop, 18.8%, ran from September 2024 to April 2025, and it recovered in about six months. Its worst calendar year was 2022, with a 4.27% loss. Anyone who had to sell shares during one of those slides would have locked in losses. It is not an income fund: the yield was 0.75% as of October 27, 2026, paid quarterly. The SEC's standard example puts costs at $52 in the first year and $641 over 10 years on $10,000. Past results don't predict future returns, and a retirement plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.