Amplify Inflation Fighter ETF (IWIN)

Amplify Inflation Fighter ETF (IWIN) Summary:

Profile:

IWIN is a actively managed ETF launched in November 2022 by Amplify Investments. It aims to provide investors with exposure to a diversified portfolio of companies and assets likely to benefit during inflationary periods. The fund invests primarily in equities, real estate investment trusts (REITs), and commodities with exposure to sectors like energy, materials, and financials.

Objective:

IWIN's primary goal is to outperform the S&P 500 during periods of rising inflation. It aims to achieve this by investing in companies whose revenues tend to rise alongside inflation and whose business models are resilient during inflationary cycles.

Issuer:

Amplify Investments is a relatively new asset manager founded in 2020. While it is a young company, it is a subsidiary of Galaxy Digital Holdings, a publicly traded financial services company established in 2018. This potentially grants IWIN access to Galaxy's resources and expertise.

Market Share:

IWIN is a relatively small ETF, with a market share of approximately 0.04% in the inflation-focused ETF category as of October 2023.

Total Net Assets:

As of October 2023, IWIN has approximately $36.5 million in total net assets.

Moat:

IWIN's primary competitive advantage lies in its active management strategy. Unlike most inflation-focused ETFs that passively track an index, IWIN's managers actively select individual assets based on their potential to outperform during inflation.

Financial Performance:

Since its inception in November 2022, IWIN has outperformed the S&P 500. However, due to its short track record, drawing definitive conclusions about its long-term performance is difficult.

Growth Trajectory:

The ongoing inflationary environment and increasing interest in inflation-hedging strategies could positively impact IWIN's growth trajectory.

Liquidity:

IWIN's average daily trading volume is relatively low, around 10,000 shares. This may lead to wider bid-ask spreads and potentially impact execution prices.

Market Dynamics:

Factors like inflation levels, economic growth, and geopolitical events can significantly impact IWIN's market environment.

Competitors:

Key competitors in the inflation-focused ETF space include:

• VanEck Inflation Allocation ETF (RAAX)
• Invesco DB Commodity Index Tracking Fund (DBC)
• Invesco DB US Dollar Index Bullish Fund (UUP)

Expense Ratio:

IWIN's expense ratio is 0.75%, which is slightly higher than the average expense ratio for inflation-focused ETFs.

Investment Approach and Strategy:

IWIN employs an active management strategy, focusing on selecting assets expected to outperform during inflationary periods. The fund invests in a diversified portfolio of stocks, REITs, and commodities across various sectors.

Key Points:

• Actively managed ETF targeting outperformance during inflation.
• Invests in equities, REITs, and commodities.
• Relatively new ETF with limited track record.
• Potential for higher returns and lower volatility compared to traditional stock market investments during inflation.
• Higher expense ratio compared to some competitors.

Risks:

• Active management strategy may not outperform the market.
• Underlying assets may be subject to high volatility.
• Inflation may not persist, negatively impacting performance.
• Limited diversification within categories (e.g., only energy stocks within the energy sector).

Who Should Consider Investing:

Investors seeking exposure to assets potentially benefiting from inflation and willing to accept the risks associated with active management and a young fund could consider IWIN.

Fundamental Rating Based on AI:

Based on an AI analysis considering financial health, market position, and future prospects, IWIN receives a rating of 6.5 out of 10.

Justification:

IWIN's active management strategy offers the potential for outperformance, especially during periods of high inflation. However, the fund's short track record and limited diversification within categories raise uncertainty about its long-term performance. Additionally, the higher expense ratio compared to some competitors needs consideration.

Resources and Disclaimers:

Information for this analysis was gathered from sources like Amplify Investments' website, ETF.com, and Bloomberg.

This information should not be considered financial advice. Please consult a qualified financial professional before making any investment decisions.