The Simplify Bitcoin Strategy PLUS Income ETF (MAXI) has been a big winner for investors since it launched in September 2022. In December 2024, Simplify launched a new ETF using the same options strategy as MAXI but with a leveraged bet on gold as the underlying asset. The new ETF is the Simplify Gold Strategy PLUS Income ETF (YGLD), explains Tim Plaehn, editor of The Dividend Hunter.
A year ago, we launched our ETF Income Edge service to provide information and guidance about the rapidly expanding universe of high-yield, option-strategy ETFs. Some crazy yields are reported for these ETFs, and we work to separate the ones that work for investors from the ones that will destroy your wealth.
MAXI recently had a distribution yield of 51.8%. Through Dec. 5, 2024, MAXI had returned 96.3% for the last year and 348% since its launch. MAXI rode the rise of Bitcoin to reward investors. The ETF, with its option strategy, performed extremely well when Bitcoin was stuck in a trading range.
As for YGLD, the fund targets a 150% exposure to the price of gold. It does so by holding T-bills and cash equal to 100% of the portfolio holdings – and purchasing gold futures valued at 150% of the portfolio size. Additional gold exposure comes from selling out-of-the money put credit spreads on the SPDR Gold Shares ETF (GLD).
Also, unique to MAXI and now YGLD, the funds generate cash flow by selling puts on unrelated assets. The fund holdings list shows credit put spreads on MSTR (Bitcoin), RUTW (small cap stocks), and the SPX.
YGLD launched on Dec. 2, 2024. As the dividends paid will vary from month to month, I expect the distribution yield to be similar to MAXI, which has ranged from 30% to 50%. YGLD could be a big winner in 2025 with that yield and some gains for gold.
I plan to keep MAXI in my recommended high-yield ETF portfolio but hope to add YGLD as soon as the fund has paid a few dividends and established a yield. One benefit from these options strategy ETFs is that you get paid very well while waiting for the underlying asset to make its move. Of the 96% MAXI returned over the last year, 72% was from dividend payments.
