Simplify Simplifies its ETF Lineup

Simplify ETFs is living up to its name, cutting half a dozen funds from its line. 

Doing some house cleaning is hardly unusual in the exchange-traded fund business, where issuers have been putting out new products at an accelerated pace for years. Not everything is going to be a winner, and unlike with recreation league youth sports, there are no participation medals. In Simplify’s case, it is culling six ETFs launched between 2022 and last year. The common issue wasn’t performance, which varied considerably, but inflows may have been a challenge. All of the strategies were small, in one case as little as $1 million.

Getting Smaller?

Despite the firm’s name, its strategies aren’t necessarily simple, and there are currently about 40 ETFs in its lineup. Simplify, which started in 2020 “to make institutional-grade alternative strategies available to investors” in ETF form, has about $7 billion in assets under management in those vehicles. So far this year, it has launched five ETFs: the Simplify China A Shares Plus Income, Currency Strategy, Barrier Income, Target 15 Distribution, and Piper Sandler US Small Cap Plus Income ETFs.

Anyone who has lived in a small apartment knows that when something new comes in, whether an ottoman or a piece of tchotchke, something has to go. Simplify didn’t offer any reasons for the forthcoming closures and liquidations, and the company didn’t respond to a request for comment.

Here are the funds set to liquidate at the end of May:

• Market Neutral Equity Long/Short ETF (EQLS), $5 million in assets, launched in 2023, returned 8% year to date. (Majority of assets owned by the firm)
• Wolfe US Equity 150/50 ETF (WUSA), $1.8 million (down from $24 million last week), launched in 2024, (9)% year to date.
• US Small Cap PLUS Income ETF (SCY), $3 million in assets, launched in 2024, (7)% year to date.
• US Equity PLUS QIS ETF (SPQ), $3 million, launched in 2023, (9)% year to date.
• Macro Strategy ETF (FIG), $11 million, launched in 2022, 7% year to date.
• Next Intangible Value Index ETF (NXTV), $1 million, launched in 2024, (2)% year to date.

All Assets Must Go: Another firm, KraneShares, on Monday disclosed that it is liquidating three funds on May 27: the Dynamic Emerging Markets Strategy, Rockefeller Ocean Engagement, and MSCI All China Index ETFs. Expect similar closures by other issuers — there were a record 233 ETF launches in the first quarter of 2025. So far this year, 55 liquidations have occurred, following 196 in 2024 and 249 in 2023, data from Morningstar Direct show. Gotta make room.