LBAY vs. CTA

Last updated Jul 14, 2026

LBAY (Leatherback Long/Short Alternative Yield ETF) and CTA (Simplify Managed Futures Strategy ETF) are both exchange-traded funds - LBAY is a Long-Short fund actively managed by Toroso Investments, while CTA is a Systematic Trend fund actively managed by Simplify. Both are actively managed. Over the past 3 years, LBAY returned 2.46%/yr vs 8.19%/yr for CTA. At a correlation of -0.03, they often move in opposite directions. LBAY charges 1.09%/yr vs 0.78%/yr for CTA.

Performance

LBAY vs. CTA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Leatherback Long/Short Alternative Yield ETF (LBAY) and Simplify Managed Futures Strategy ETF (CTA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LBAY achieves a 7.27% return, which is significantly higher than CTA's 0.33% return.

LBAY

• 1D: 1.00%
• 1M: 0.42%
• 6M: 4.98%
• YTD: 7.27%
• 1Y: 7.09%
• 3Y*: 2.46%
• 5Y*: 5.28%
• 10Y*: —

CTA

• 1D: 2.70%
• 1M: -5.44%
• 6M: -2.22%
• YTD: 0.33%
• 1Y: -0.10%
• 3Y*: 8.19%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

LBAY vs. CTA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
LBAY Leatherback Long/Short Alternative Yield ETF	7.27%	4.08%	-3.49%	-8.54%	11.15%
CTA Simplify Managed Futures Strategy ETF	0.33%	0.88%	24.15%	-2.23%	9.01%

Correlation

The correlation between LBAY and CTA is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.02
Correlation (All Time) Calculated using the full available price history since Mar 8, 2022	-0.03

The correlation between LBAY and CTA shifts across timeframes, from -0.03 (all time) to 0.13 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

LBAY vs. CTA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LBAY

LBAY Risk / Return Rank: 17
LBAY Sharpe Ratio Rank: 17
LBAY Sortino Ratio Rank: 17
LBAY Omega Ratio Rank: 16
LBAY Calmar Ratio Rank: 17
LBAY Martin Ratio Rank: 16

CTA

CTA Risk / Return Rank: 9
CTA Sharpe Ratio Rank: 9
CTA Sortino Ratio Rank: 9
CTA Omega Ratio Rank: 9
CTA Calmar Ratio Rank: 9
CTA Martin Ratio Rank: 9

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LBAY vs. CTA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Leatherback Long/Short Alternative Yield ETF (LBAY) and Simplify Managed Futures Strategy ETF (CTA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LBAY	CTA	Difference
Sharpe ratio: Return per unit of total volatility	0.43	-0.00	+0.44
Sortino ratio: Return per unit of downside risk	0.76	0.13	+0.63
Omega ratio: Gain probability vs. loss probability	1.09	1.02	+0.07
Calmar ratio: Return relative to maximum drawdown	0.52	-0.00	+0.53
Martin ratio: Return relative to average drawdown	1.22	-0.01	+1.23

LBAY vs. CTA - Sharpe Ratio Comparison

The current LBAY Sharpe Ratio is 0.43, which is higher than the CTA Sharpe Ratio of -0.00. The chart below compares the historical Sharpe Ratios of LBAY and CTA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LBAY vs. CTA - Drawdown Comparison

The maximum LBAY drawdown since its inception was -15.99%, smaller than the maximum CTA drawdown of -20.44%. Use the drawdown chart below to compare losses from any high point for LBAY and CTA.

Drawdown Indicators

	LBAY	CTA	Difference
Max Drawdown Largest peak-to-trough decline	-15.99%	-20.44%	+4.45%
Max Drawdown (1Y) Largest decline over 1 year	-13.61%	-20.44%	+6.83%
Max Drawdown (3Y) Largest decline over 3 years	-14.57%	-20.44%	+5.87%
Max Drawdown (5Y) Largest decline over 5 years	-15.99%	—	—
Current Drawdown Current decline from peak	-9.97%	-17.68%	+7.71%
Average Drawdown Average peak-to-trough decline	-6.87%	-5.93%	-0.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.84%	6.76%	-0.92%

Volatility

LBAY vs. CTA - Volatility Comparison

Leatherback Long/Short Alternative Yield ETF (LBAY) has a higher volatility of 6.58% compared to Simplify Managed Futures Strategy ETF (CTA) at 5.15%. This indicates that LBAY's price experiences larger fluctuations and is considered to be riskier than CTA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LBAY	CTA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.58%	5.15%	+1.43%
Volatility (6M) Calculated over the trailing 6-month period	13.21%	17.93%	-4.72%
Volatility (1Y) Calculated over the trailing 1-year period	16.45%	20.61%	-4.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.70%	16.63%	-2.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.89%	16.63%	-2.74%

LBAY vs. CTA - Expense Ratio Comparison

LBAY has a 1.09% expense ratio, which is higher than CTA's 0.78% expense ratio.

Dividends

LBAY vs. CTA - Dividend Comparison

LBAY's dividend yield for the trailing twelve months is around 3.82%, less than CTA's 5.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
CTA Simplify Managed Futures Strategy ETF	5.00%	3.19%	4.80%	7.78%	6.58%	0.00%	0.00%
LBAY Leatherback Long/Short Alternative Yield ETF	3.82%	3.80%	3.77%	3.47%	2.74%	2.96%	0.29%

Frequently Asked Questions

Can I hold both LBAY and CTA in my portfolio?

LBAY and CTA have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LBAY or CTA?

LBAY has higher volatility (6.58%) compared to CTA (5.15%). In terms of maximum drawdown, LBAY dropped -15.99% vs CTA's -20.44%.

Which ETF is better, LBAY or CTA?

On 3-year performance, CTA leads with 8.19% vs 2.46% for LBAY. On fees, CTA is cheaper at 0.78% per year. On volatility, CTA has been the lower-risk option at 5.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LBAY or CTA?

Over the 3-year period, CTA has performed better with a 8.19% return vs 2.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LBAY or CTA?

CTA is cheaper with a 0.78% expense ratio, compared with 1.09% for LBAY.

Which ETF pays a higher dividend yield, LBAY or CTA?

CTA has the higher dividend yield at 5.00%, compared with 3.82% for LBAY.

What is the main difference between LBAY and CTA?

LBAY is categorized as Long-Short, while CTA is Systematic Trend. They also come from different issuers: Toroso Investments and Simplify. Their fees differ too: 1.09% for LBAY and 0.78% for CTA.

Which has better risk-adjusted returns?

LBAY currently has the higher Sharpe Ratio (0.43 vs -0.00), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.