ETF Education Report: SIMPLIFY HIGH YIELD ETF (CDX)

What this ETF is trying to do

The SIMPLIFY HIGH YIELD ETF (ticker: CDX) is an exchange-traded fund listed on the NYSE. While the specific investment strategy is not detailed in the provided data, the name suggests it focuses on high-yield assets.

What the numbers show

When looking at an ETF, it is important to separate "price return" from "total return." Price return only tracks how much the share price changes. Total return includes both the price change and any cash distributions (dividends) paid out to investors.

Based on the data as of September 23, 2026:

• Year-to-Date (YTD): The price return is approximately -8.26%. However, the total return is higher at approximately -3.42%.

• One Year: The price return was approximately -11.17%, while the total return was approximately -3.98%.

• Three Years: The price return was approximately -6.50%, but the total return was a positive 21.13%.

To visualize the price change, an investor's share price was estimated to be roughly $23.00 one year ago, compared to the current price of $20.43.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 8.32%. This means the amount of cash paid out is high relative to the current share price. These distributions usually happen monthly, with Tuesday being the most common day for payouts.

It is important to remember that a high distribution yield does not mean the investor earned that percentage as their total return. You must look at the "total return" figure to see how the investment performed overall after including those cash payments.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. While a falling share price does not always mean the NAV is eroding, we use an "erosion-risk score" to measure this risk.

This ETF has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk and not a definitive proof that the fund's value has collapsed.

Pros

• The ETF has a high distribution yield of approximately 8.32%.

• Over a three-year period, the total return was positive at 21.13%, even though the share price itself declined.

Cons

• The ETF has experienced a share-price decline over the last year and year-to-date.

• The erosion-risk score indicates "mild price erosion."

Beginner takeaway

When looking at high-yield ETFs like CDX, it is helpful to look at both the price and the total return. A high distribution yield can provide cash income, but it does not guarantee that the share price will stay stable. Always check the total return to see how much value was actually gained or lost over time.