EEMC — Simplify Emerging Markets Equity PLUS Downside Convexity ETF

EEMC Fund Overview

EEMC — Simplify Emerging Markets Equity PLUS Downside Convexity ETF is a US ETF managed by Simplify Exchange Traded Funds, categorised as Emerging Markets Multi-Cap / All-Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Simplify Exchange Traded Funds
• Category: Emerging Markets Multi-Cap / All-Cap Blend / Core Equity
• Assets under management: $3.89M
• 1-year return: -1.9%
• Ticker: EEMC
• SEC CIK: 0001810747
• SEC series ID: S000073862
• Share class ID: C000231093

EEMC Investment Objective and Strategy

Simplify Emerging Markets Equity PLUS Downside Convexity ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Simplify Exchange Traded Funds.

Investment objective

Investment Objective: Simplify Emerging Markets Equity PLUS Downside Convexity ETF (the Fund or EMGD) seeks to provide capital appreciation.

Principal investment strategy

Principal Investment Strategies: The adviser seeks to achieve the Funds investment objective by investing primarily in equity securities issued by, or tied economically to, companies in emerging markets and applying a downside convexity option overlay strategy to the equity investments. Equity Strategy The Fund has adopted a non-fundamental investment policy that, under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities issued by, or tied economically to, companies in emerging markets. The adviser considers an emerging market country to include any country that is (1) generally recognized to be an emerging market country by the international financial community, including the World Bank; (2) classified by the United Nations as a developing country; or (3) included in the MSCI Emerging Markets Index.

The adviser determines that an investment is tied economically to an emerging market if such investment satisfies one or more of the following conditions: (1) the issuers primary trading market is in an emerging market; (2) the issuer is organized under the laws of, derives at least 50% of its revenue from, or has at least 50% of its assets in emerging markets; (3) the investment is included in an index representative of emerging markets; and (4) the investment is exposed to the economic risks and returns of emerging markets. The Fund pursues its equity strategy primarily by purchasing exchange-traded funds (ETFs) that invest principally in equity securities issued by, or tied economically to, companies in emerging markets. The adviser does not frequently trade equity securities but seeks to maintain consistent exposure to such companies through its investments in ETFs.

The adviser determines which equity securities to purchase based on factors such as price, liquidity, and track record. Downside Convexity Option Overlay Strategy Up to twenty percent of the Funds net assets will be subject to the Funds downside convexity option overlay. The downside convexity option overlay consists of purchasing exchange-traded and over the counter (OTC) put options on an emerging markets index or a similar index ETF. When the Fund purchases a put option, the Fund has the right, but not the obligation, to sell a stock or other asset at a specified price (strike price) within a specific time period. The downside convexity option overlay is a strategic, persistent exposure meant to hedge against market moves and is intended to add convexity to the Fund. If the market goes down, the Funds returns may fall less than the market because the adviser will sell or exercise the put options.

The adviser selects options based upon its evaluation of relative value based on cost, strike price (price that the option can be bought or sold by the option holder) and maturity (the last date the option contract is valid) and will exercise or close the options based on maturity or portfolio rebalancing requirements. The Fund anticipates purchasing options on a monthly, quarterly, and annual basis, depending upon the Funds rebalancing requirements and the individual option expiration dates. However, the Fund may rebalance its option portfolio on a more frequent basis for a number of reasons such as market volatility renders the protection provided by the option strategy ineffective or an option position has appreciated to the point that it is prudent to decrease the Funds exposure and realize gains for the Funds shareholders.

While the downside convexity option overlay is intended to protect the Fund from losses, there is no guarantee that it will be able to protect the Fund from losses. Convexity in the Funds name is a reference to the mathematical term convexity. The Funds returns are intended to possess convexity because the relationship between the Funds returns and market returns is not designed to be linear. That is, if market returns go up and down in a linear fashion, the Funds returns are expected to rise faster than the market in positive markets; while declining less than the market in negative markets. The value of the Funds call options is expected to rise in proportion to the rise in value of the underlying assets, but the amount by which the Funds options increase or decrease in value depends on how far the market has moved from the time the options position was initiated.

The value of the Funds call options may rise faster than the market if the adviser successfully selects options that appreciate in value. Otherwise stated, the term convexity in the Funds name refers to the intended non-linear nature between the Funds and the market returns; it does not refer to the concept of bond convexity, which is a measure of the non-linear relationship between bond duration and changes in interest rates.

EEMC Performance

Total returns for EEMC (as of 2026-10-01), from SEC filings.

EEMC Risk Information

Risk metrics for EEMC, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 21.1%

EEMC Costs and Fees

EEMC costs about $36 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.36%
• Gross expense ratio: 0.61%
• Portfolio turnover: 2%
• Brokerage commissions: 9.61 bps of average net assets (SEC N-CEN)

EEMC Cashflows

Over the 12 months to 2023-09, Simplify Emerging Markets Equity PLUS Downside Convexity ETF had net inflows of $4.91M, from monthly SEC N-PORT filings.

EEMC Debt Constituents

No individual debt constituents are reported in Simplify Emerging Markets Equity PLUS Downside Convexity ETF's latest SEC N-PORT filing.

EEMC Prospectus and SEC Filings

Official Simplify Emerging Markets Equity PLUS Downside Convexity ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2022-10-27
• Prospectus supplement (497) — filed 2021-12-14
• Portfolio holdings (N-PORT) — filed 2023-11-29
• Portfolio holdings (N-PORT) — filed 2023-08-18
• Portfolio holdings (N-PORT) — filed 2023-05-22
• Annual census (N-CEN) — filed 2023-09-13
• Annual census (N-CEN) — filed 2022-09-13

Related Funds

Other Emerging Markets Multi-Cap / All-Cap Blend / Core Equity funds tracked on ABC INVEST:

• Delaware Emerging Markets Fund (DEMAX)
• WisdomTree Emerging Markets High Dividend Fund (DEM)
• Martin Currie SMASh Series EM Fund (LCSMX)
• Invesco Developing Markets Fund (GTDDX)
• Emerging Markets ex China Core Equity Portfolio (DAADX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.