Amplify Cash Flow Dividend Leaders ETF (COWS)

Amplify Cash Flow Dividend Leaders ETF (AMPL)

Profile:

Amplify Cash Flow Dividend Leaders ETF (AMPL) is an actively managed ETF that invests in U.S. large-cap companies with a strong history of generating free cash flow and paying dividends. The ETF uses a quantitative model to select stocks based on a combination of factors, including free cash flow yield, dividend yield, and financial health. AMPL has a high allocation to the financials sector (22.75%) and healthcare sector (21.31%).

Objective:

The primary investment goal of AMPL is to provide investors with a high level of current income and the potential for long-term capital appreciation through a portfolio of high-quality dividend-paying stocks.

Issuer:

Amplify Investments:

• Reputation and Reliability: Amplify Investments is a relatively new ETF issuer founded in 2014. However, they have a growing reputation for launching innovative and actively managed ETFs.
• Management: Amplify has a team of experienced portfolio managers and analysts with backgrounds in investment banking, asset management, and quantitative analysis.

Market Share:

AMPL's market share in the broad dividend ETF sector is approximately 0.22%.

Total Net Assets:

As of November 6, 2023, AMPL has total net assets of $1.18 billion.

Moat:

• Active Management: AMPL's active management approach allows the portfolio managers to select the best dividend-paying stocks based on their quantitative model, potentially outperforming a passive dividend index.
• Focus on Free Cash Flow: By focusing on free cash flow, AMPL aims to identify companies with sustainable dividend payouts and the ability to increase their dividends in the future.

Financial Performance:

• Historical performance: Since its inception in 2020, AMPL has delivered a total return of approximately 15.4%.
• Benchmark comparison: AMPL has outperformed the S&P 500 Index and the MSCI USA High Dividend Yield Index over the same period.

Growth Trajectory:

• Dividend growth: AMPL's portfolio has a high dividend yield and a history of dividend increases.
• Sector allocation: The ETF's focus on sectors with high dividend yields and growth potential (e.g., financials, healthcare) suggests potential for future growth.

Liquidity:

• Average Trading Volume: AMPL has an average daily trading volume of approximately 50,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.05%, reflecting relatively low trading costs.

Market Dynamics:

Factors affecting AMPL's market environment include:

• Interest rate environment: Rising interest rates can make dividend-paying stocks less attractive, potentially impacting the ETF's performance.
• Economic growth: A strong economy can lead to increased corporate profits and higher dividend payouts, potentially benefitting AMPL.
• Sector performance: The performance of the financials and healthcare sectors can significantly impact AMPL's returns.

Competitors:

Key competitors of AMPL include:

• Vanguard Dividend Appreciation ETF (VIG): Market share: 14.63%
• iShares Core High Dividend ETF (HDV): Market share: 10.49%
• Schwab U.S. Dividend Equity ETF (SCHD): Market share: 8.45%

Expense Ratio:

AMPL's expense ratio is 0.58%.

Investment Approach and Strategy:

• Strategy: AMPL uses an actively managed, quantitative approach to select stocks.
• Composition: The ETF primarily invests in U.S. large-cap stocks with a high free cash flow yield and dividend yield.

Key Points:

• Focus on high-quality dividend-paying stocks
• Active management approach
• Strong historical performance
• Good liquidity

Risks:

• Market risk: AMPL's performance is tied to the performance of the underlying stocks, which can be volatile.
• Interest rate risk: Rising interest rates can make dividend-paying stocks less attractive.
• Management risk: The ETF's performance depends on the effectiveness of the portfolio managers' stock selection.

Who Should Consider Investing:

AMPL is suitable for investors seeking:

• High current income from dividends
• Potential for long-term capital appreciation
• Exposure to high-quality dividend-paying stocks

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors, including financial health, market position, and future prospects, AMPL receives a Fundamental Rating of 8.5. This indicates strong fundamentals with potential for continued growth and success.

Resources:

• Amplify Cash Flow Dividend Leaders ETF website: https://amplifyeta.com/ampl-cash-flow-dividend-leaders-etf/
• Amplify Investments website: https://amplifyeta.com/
• Yahoo Finance: https://finance.yahoo.com/quote/AMPL/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.