Simplify China A Shares ETF Declares $0.1000 Monthly Distribution
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
china-etfmonthly-distribution
Fazen Markets Editorial Desk
Collective editorial team · methodology
Trades XAUUSD 24/5 on autopilot. Verified Myfxbook performance. Free forever.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The majority of retail investor accounts lose money when trading CFDs. Vortex HFT is informational software — not investment advice. Past performance does not guarantee future results.
The Simplify China A Shares PLUS Income ETF declared a monthly distribution of $0.1000 per share on June 25, 2026. This distribution applies to shareholders of record as of July 1, 2026, with a payable date set for July 8, 2026. The ETF trades on the NYSE Arca under the ticker symbol ASPY.
Monthly distributions from covered call ETFs provide a critical income stream for investors in a low-yield environment. The current 10-year U.S. Treasury yield trades near 4.2%, making alternative income sources attractive. This specific payout reflects the fund's performance over the previous month, driven by its options-writing strategy on a basket of Chinese equities.
China A-shares represent onshore Chinese companies listed on the Shanghai and Shenzhen stock exchanges. Foreign access to these shares has expanded significantly since the launch of the Stock Connect program in 2014. The Simplify ETF employs a covered call, or buy-write, strategy to generate income from these holdings.
Recent volatility in Chinese markets has increased the premium income available from writing call options. The CSI 300 Index, a key benchmark for China A-shares, has experienced elevated implied volatility readings above its 20-day historical average. This environment creates favorable conditions for funds like ASPY that sell volatility to enhance yield.
The declared distribution of $0.1000 per share represents an annualized yield of approximately 11.8% based on ASPY's closing price of $10.17 on June 24, 2026. This yield significantly outpaces the broader equity income universe. The Vanguard Real Estate ETF yields 3.8%, while the iShares Preferred and Income Securities ETF yields 6.2%.
ASPY's net assets total $54.7 million as of the latest reporting date. The fund has maintained a consistent distribution schedule since its inception, declaring a payout every month. The fund's expense ratio is 0.75%, which is deducted from the generated income before distributions are declared to shareholders.
The distribution yield has fluctuated with market conditions. The fund's 12-month trailing distribution yield stands at 10.4%, indicating the current payout is above its recent average. This suggests a recent increase in options premium income collected by the fund's strategy.
| Metric | Value |
|---|---|
| Distribution Per Share | $0.1000 |
| ASPY Share Price | $10.17 |
| Annualized Yield | 11.8% |
| Net Assets | $54.7M |
The high distribution yield underscores persistent demand for income-generating strategies focused on Chinese equities. This flow supports the prices of underlying holdings in sectors like consumer discretionary and technology, which are heavily weighted in A-share indices. Companies like Kweichow Moutai and Contemporary Amperex Technology benefit from this structural bid.
A primary risk for the strategy is a significant rally in Chinese equities. A sharp upward move could force the fund to cover its written call options at a loss, capping upside participation and potentially threatening future distribution levels. The strategy inherently trades capital appreciation potential for current income.
Institutional flow data indicates continued interest in structured yield products. Options volume on the iShares China Large-Cap ETF has increased 15% month-over-month, suggesting sophisticated investors are implementing similar volatility-selling strategies directly. Retail investors appear to be accessing the theme through packaged products like ASPY.
The next key catalyst for ASPY's distribution level will be China's official Purchasing Managers' Index data, scheduled for release on July 1, 2026. A reading above 50.0, indicating expansion, could boost equity prices and options premiums. A sub-50.0 reading may suppress volatility and income potential.
Investors should monitor the USD/CNY exchange rate, currently at 7.25. A significant strengthening of the yuan could enhance returns for U.S.-based holders of Chinese assets. Conversely, further yuan weakness would act as a headwind to total returns.
The fund's next ex-dividend date is July 1, 2026. The subsequent distribution declaration will be closely watched for consistency. A material deviation from the $0.1000 level would signal a shift in the volatility environment or the fund's options strategy execution.
The Simplify China A Shares PLUS Income ETF is an exchange-traded fund that invests in Chinese A-shares and employs a covered call strategy. The fund writes call options on its holdings or on related indices to generate premium income, which is then distributed to shareholders on a monthly basis. Its primary objective is to provide investors with income and potential capital appreciation.
The $0.1000 distribution is consistent with the fund's recent payout history. ASPY declared distributions of $0.0980 and $0.1020 in the two preceding months. This consistency suggests stable options premium generation, though yields fluctuate with the fund's net asset value.
Distributions from covered call ETFs like ASPY typically comprise both qualified dividend income and non-qualified sections, including return of capital. The final characterization is provided to shareholders on Form 1099-DIV after the tax year ends. Investors should consult a tax advisor for specific implications.
The ASPY ETF's $0.1000 distribution offers an 11.8% annualized yield from its options strategy on Chinese equities.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
Vortex HFT is our free MT4/MT5 Expert Advisor. Verified Myfxbook performance. No subscription. No fees. Trades 24/5.
Trade 800+ global stocks & ETFs
Start TradingSponsored
Open a demo account in 30 seconds. No deposit required.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.