SIMPLIFY BITCOIN STRATEGY PLUS INCOME ETF (MAXI)

The SIMPLIFY BITCOIN STRATEGY PLUS INCOME ETF (MAXI) is designed to provide investors with income while following a Bitcoin-related strategy. It is characterized by a high distribution yield but has experienced a significant decline in its share price over the last year.

What the Numbers Show

The current price of MAXI is $14.30. To understand how the price has changed, we can look at the price return (which tracks only the share price) and the total return (which includes distributions).

• Year-to-Date (YTD): The price return is -0.02%, while the total return is 4.54%.

• One Year: The price return is -52.83%, and the total return is -43.60%.

• Three Year: The price return is -9.12%, but the total return is 117.47%.

For a simple example, if an investor had put $10,000 into the share price alone roughly one year ago (when the estimated price was $30.31), the value of those shares would have dropped by approximately 52.83% based on the one-year price return.

Income and Distribution Explanation

MAXI pays distributions usually every month. Over the last 12 months, it has made 10 payouts. The distribution yield is 21.09%, and the trailing distributions total $3.02 per share.

It is important for beginners to know that a high distribution yield does not guarantee a profit. In this case, the one-year total return is -43.60%, which shows that the income from distributions did not offset the large drop in the share price over that period.

Price and NAV Erosion Explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the data shows a severe erosion-risk flag. This warning was triggered because the ETF has an erosion score of 10 and an erosion label of "Severe price erosion." This means the share price has deteriorated substantially.

Pros

• High Income Potential: The ETF offers a high distribution yield of 21.09%.

• Long-term Total Return: The three-year total return is positive at 117.47%.

Cons

• Severe Price Decline: The share price has fallen significantly over the last year.

• Low Income Grade: The fund has an income rating grade of "F" with a score of 27.

• High Risk: The severe erosion-risk flag indicates a strong trend of price deterioration.

Beginner Takeaway

MAXI provides high monthly cash payments, but these payments have come alongside a steep drop in the share price over the last year. This highlights why investors should look at "total return" rather than just "distribution yield." A high yield can be misleading if the value of the original investment is falling quickly.