BUCK Offers A 7.55% Yield, But Don't Ignore The Competition

Fred PiardInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsSummarySimplify Treasury Option Income ETF offers a 7.55% yield via option spreads and a portfolio of short-term Treasuries.BUCK has outperformed the Treasury bill benchmark by 60 bps annualized since inception, but with higher drawdowns (5.4%) and some capital erosion.Among bond and options income ETFs, CSHI provides a more stable asset value, much lower volatility, and slightly better total return despite a lower yield.Quantitative Risk & Value members get exclusive access to our real-world portfolio. See all our investments here » Andrii Yalanskyi/iStock via Getty Images BUCK Strategy Simplify Treasury Option Income ETF (BUCK) is an actively managed bond and options income ETF launched on 10/27/2022. BUCK has a 12-month trailing yield of 7.55% and an expense ratio of 0.35%. Distributions areThis article was written byFred Piard16.38K FollowersFollowFred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010. Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.