HARD: SIMPLIFY COMMODITIES STRATEGY NO K-1 ETF
What this ETF is trying to do
The SIMPLIFY COMMODITIES STRATEGY NO K-1 ETF (Ticker: HARD) is an exchange-traded fund that focuses on commodities. Commodities are basic goods like metals, energy, and food. Based on its top holdings, this fund uses various "futures" contracts—which are agreements to buy or sell goods at a later date—for things like cattle, crude oil, copper, coffee, and gold. It also holds a large amount in a money market ETF.
What the numbers show
When looking at an ETF, it is important to know the difference between price return and total return. Price return only tracks how much the share price changed. Total return includes both the price change and any cash payments (distributions) the fund gave to investors.
Here is how this ETF has performed:
• Year-to-Date (YTD): The price return is approximately 13.77%, while the total return is approximately 16.94%.
• One Year: The price return was approximately 11.29%, and the total return was approximately 14.51%.
• Three Years: The price return was approximately 35.75%, and the total return was approximately 49.97%.
To give you an idea of price movement, the current price is $33.72. The estimated price from roughly one year ago was approximately $30.30.
Income and distribution explanation
This ETF pays out cash to investors, which is called a distribution. The distribution yield is approximately 2.76%. This number tells you how much cash was distributed relative to the current share price. Over the last 12 months, the trailing distributions were $0.93 per share. These payments usually happen quarterly, and in the last year, there were 4 payouts.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. Some investors worry about this because they want to make sure their original investment stays stable while they collect income.
For this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." The erosion severity is listed as "good," and there is no severe erosion-risk flag.
Pros
• Strong Total Returns: The three-year total return of approximately 49.97% shows significant growth including distributions.
• Positive Price Movement: The share price has increased over the one-year and three-year periods.
• No Erosion Warning: The data shows no detected price erosion.
Cons
• Complex Holdings: The fund uses many different commodity futures, which can be complex.
• Partial Data: The list of top holdings is only a partial view of the total 67 holdings in the fund.
Beginner takeaway
When looking at HARD, it is helpful to distinguish between the rising share price and the cash distributions. This fund has shown both positive price returns and positive total returns over the last three years. While it provides a distribution yield, always remember that high yields are separate from the overall growth of your investment.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SIMPLIFY GOVERNMENT MONEY MARKET ETF | SBIL | 37.41% |
| 2 | FEEDER CATTLE FUTURE AUG 26 | n/a | 6.52% |
| 3 | LIVE CATTLE FUTURE AUG 26 | n/a | 6.52% |
| 4 | BRENT CRUDE FUTURE SEPT 26 | n/a | 6.00% |
| 5 | LIVE CATTLE FUTURE OCT 26 | n/a | 4.54% |
| 6 | COPPER FUTURE SEPT 26 | n/a | 2.91% |
| 7 | COFFEE C FUTURE SEPT 26 | n/a | 2.89% |
| 8 | GOLD FUTURE AUG 26 | n/a | 2.48% |
| 9 | FEEDER CATTLE FUTURE SEPT 26 | n/a | 2.42% |
| 10 | FUTURE ON SOYBEAN | n/a | 1.95% |