CT CTAP Simplify US Equity PLUS Managed Futures Strategy ETF Loading... : Bullish and Bearish Analyst Opinions

The author argues CTAP should be removed from the portfolio because its TER is too high and its managed-futures trend strategy carries volatility too high to hold at significant weight. The mechanism is that the fee drag and volatility reduce risk-adjusted returns relative to alternatives. No specific replacement is named beyond shifting weight elsewhere.

CTAP is cited as one of the return-stacking funds making up roughly 10% of the author's backtested portfolio, with its expense ratio already accounted for in the backtest. The rationale is diversifying exposure via capital-efficient funds while keeping the allocation small. Main stated risk is tax drag from periodic rebalancing.

The author says CTAP underwent significant changes that led them to exit the ETF entirely, implying the fund's altered methodology or holdings no longer fit their managed-futures allocation. The mechanism is that structural changes to the fund's strategy can degrade its diversification or return profile versus the historical proxy used in backtests. No specific catalyst or timeframe is given beyond the change already occurring. Main risk stated is relying on inaccurate backtest proxies like KMLM.