ETF Education Report: SIMPLIFY Propel Opportunities ETF (SURI)

What this ETF is trying to do

The SIMPLIFY Propel Opportunities ETF (SURI) is an exchange-traded fund listed on the NYSE. Based on its top holdings, the fund has significant exposure to various companies, including Plains GP Holdings LP Class A. Because the holdings list provided is partial, it only shows some of the 36 total companies held by the fund.

What the numbers show

When looking at an ETF, it is important to understand the difference between price return and 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.

Here is how SURI has performed:

• Year-to-Date (YTD): The price return is approximately 2.28%, while the total return is approximately 15.32%.

• One-Year: The price return is approximately 6.47%, while the total return is approximately 24.98%.

• Three-Year: The price return is approximately -12.94%, while the total return is approximately 39.93%.

To put this in perspective, the current price is $17.06. The estimated price from roughly one year ago was approximately $16.02.

Income and distribution explanation

This ETF has a high distribution yield of approximately 15.95%. This number describes the cash distributions relative to the ETF's price. Over the last 12 months, the trailing distributions were $2.72. These payments usually happen on a quarterly basis.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. Total return is the more complete measurement of how much value was created.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be a sign of erosion, it is not proof of it.

For SURI, the erosion-risk score is 100, and the label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• Strong Total Returns: While the share price has dropped over a three-year period, the total return remains positive at approximately 39.93% due to distributions.

• High Yield: The fund provides a high distribution yield for those looking for cash income.

Cons

• Price Volatility: The three-year price return is negative, meaning the share price itself has decreased over that time.

• Partial Data: The provided list of holdings is only a partial view of the full portfolio.

Beginner takeaway

When looking at SURI, notice the large gap between the price return and the total return. This happens because the fund pays out significant cash distributions. While high yields can provide income, investors should always look at the total return to see how the investment is performing overall.