Amplify ETF Trust (IPAY)IPAY

ETFMG Prime Mobile Payments ETF (IPAY) Overview

Profile:

IPAY is an actively managed ETF launched in 2019 that focuses on companies involved in the mobile payments ecosystem. This includes businesses facilitating transactions using mobile devices, contactless payments, and digital wallets. IPAY invests in a diversified portfolio of U.S. and international companies across various market capitalizations.

Objective:

IPAY aims to provide investors with capital appreciation by investing in companies poised to benefit from the growth of mobile payments.

Issuer:

ETF Managers Group (ETFMG) is the issuer of IPAY. ETFMG is a US-based company known for thematic investing, with a focus on emerging trends and disruptive technologies.

Reputation and Reliability: ETFMG has a growing reputation in the ETF space, specializing in thematic niches. However, their overall track record is still relatively young compared to established ETF providers.

Management: The ETF is actively managed by a team of experienced investment professionals at ETFMG, led by Sam Masucci, CEO and CIO. The team has expertise in thematic investing and selecting companies within disruptive technology sectors.

Market Share:

IPAY is a relatively small ETF within the broader FinTech space, accounting for roughly 0.5% of the market share. However, it holds a leading position within the niche mobile payments ETF category.

Total Net Assets:

As of November 2023, IPAY has approximately $75 million in total net assets.

Moat:

IPAY's competitive advantage lies in its focused exposure to the rapidly growing mobile payments sector. Additionally, its active management allows for greater flexibility in selecting companies compared to passively managed ETFs.

Financial Performance:

Since its inception, IPAY has delivered a positive return, outperforming the broader market and its benchmark index, the S&P 500. However, it's important to note that its track record is still limited, and past performance is not indicative of future results.

Growth Trajectory:

The mobile payments industry is expected to experience significant growth in the coming years, driven by rising smartphone penetration, increasing eCommerce adoption, and evolving consumer preferences. This bodes well for IPAY's long-term growth potential.

Liquidity:

IPAY has a moderate average daily trading volume, indicating reasonable liquidity for investors looking to enter or exit positions. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics:

The growth of mobile payments is influenced by several factors, including technological advancements, regulatory changes, consumer adoption, and competition from established players and new entrants.

Competitors:

IPAY's key competitors include the Global X FinTech ETF (FINX) and the ARK Fintech Innovation ETF (ARKF). These ETFs have a broader focus on FinTech companies, including those involved in mobile payments.

Expense Ratio:

IPAY has an expense ratio of 0.75%, which is considered average for actively managed thematic ETFs.

Investment Approach and Strategy:

IPAY actively selects companies involved in various aspects of mobile payments, aiming to capture the full potential of the growing industry. The portfolio includes companies facilitating transactions, providing infrastructure, and developing innovative solutions.

Key Points:

• Focused exposure to the high-growth mobile payments sector.
• Actively managed to identify and invest in leading companies.
• Strong historical performance, exceeding benchmark returns.
• Potential for long-term growth aligned with industry trends.
• Moderate liquidity and reasonable expense ratio.

Risks:

• Volatility: As a thematic ETF focused on a specific sector, IPAY is susceptible to higher volatility compared to broader market ETFs.
• Market Risk: The performance of IPAY is directly linked to the success of companies within the mobile payments industry, which faces competition and disruption risks.
• Concentration Risk: IPAY invests in a limited number of holdings, increasing its exposure to individual company risks.

Who Should Consider Investing:

• Investors seeking exposure to the high-growth mobile payments sector.
• Investors comfortable with higher volatility associated with thematic ETFs.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an analysis of various factors like financial performance, market position, and future potential, IPAY receives a fundamental rating of 7 out of 10. This rating reflects its strong positioning within a promising growth sector, its active management approach, and historical performance. However, the relatively young track record and inherent volatility require careful consideration before investing.

Resources and Disclaimers:

This analysis utilizes data from ETFMG, Bloomberg, and ETF Database.

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