For years, income investors have been obsessed with covered call ETFs. They promise steady cash flow and monthly dividends — perfect for those building passive income.
But now… a new competitor has entered the market.
And surprisingly, it's not another covered call ETF.
Meet the Simplify Barrier Income ETF, a new type of high-yield income ETF that is starting to grab the attention of dividend investors everywhere.
Even more interesting?
It offers around 13% yield and pays monthly dividends.
Yes — monthly income.
Let’s break down why this ETF is suddenly getting so much attention from investors.
What Makes SBAR Different From Other Income ETFs?
Most income ETFs rely on covered call strategies to generate income.
But SBAR uses a completely different system called an “autocallable barrier option strategy.”
In simple terms:
Instead of selling covered calls, the fund generates income by selling barrier put options with a downside protection level.
The key concept is the 30% downside barrier.
Here’s what that means:
As long as the underlying market does not fall more than 30% by contract expiration, investors continue earning income.
If the market stays above that barrier, the strategy collects option premiums — which are then distributed to investors as monthly income.
This structure allows investors to potentially earn higher yields than traditional bonds or fixed-income investments.
The ETF Is Diversified Across Major US Indexes
Another major advantage of SBAR is that it does not rely on a single stock.
Instead, the ETF is linked to three major US market indexes:
S&P 500
Nasdaq‑100
Russell 2000
This diversification helps spread risk across different segments of the market.
However, investors should still understand the risk:
If one of these indexes falls below the barrier level, the fund may experience losses tied to that decline.
Why Investors Love the Monthly Income
The biggest reason SBAR is attracting attention is simple:
Consistent monthly payouts.
Recent distributions have been around:
$0.28 per month per share
With the most recent payout slightly lower at $0.25.
Even though the fund is still relatively new (launched in April 2025), the payments have remained fairly consistent so far.
For dividend investors, this type of predictable income can be extremely attractive.
The Hidden Advantage: Income Stacking
Another unique feature of this strategy is something called laddering.
Instead of placing just one large options contract, the ETF spreads contracts across different time periods.
This means:
• Risk is spread out
• Not all contracts expire at the same time
• The fund can continue generating income consistently
Even during volatile markets.
Performance So Far
Although the ETF hasn't been trading for a full year yet, the results have already surprised many investors.
Current numbers show:
Price Return: 2.81%
Total Return (including dividends): 14.33%
The difference shows exactly how powerful the income component is.
The main goal of SBAR isn't price growth — it's income generation.
A Higher-Risk Version Exists Too
For investors who want even more income potential, there is another ETF called:
Simplify Autocallable Income ETF
This ETF targets an even higher distribution rate of around 15%.
However, it comes with slightly higher risk because the barrier levels are tighter.
Key Facts About SBAR
Expense Ratio: 0.75%
Assets Under Management:
Over $261 million
Considering how new this strategy is, the fund is already growing in popularity.
Autocallable strategies like this may become the next big trend in income investing.
Want To Buy This ETF Easily?
If you're interested in investing in SBAR or other US dividend ETFs, you can do it easily using the trading platform below.
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Many investors are now using moomoo to discover new high-yield ETFs before they become mainstream.
So if you're planning to build monthly dividend income, this might be a strategy worth exploring.
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