Amplify ETF Trust - Amplify Natural Resources Dividend Income ETF (NDIV)

Amplify Natural Resources Dividend Income ETF (NFG): A Summary

Profile:

Amplify Natural Resources Dividend Income ETF (NFG) is an actively managed exchange-traded fund that seeks to provide high-income generation by investing in a global portfolio of natural resource companies. It focuses on companies with strong track records of dividend payments, aiming to deliver consistent and attractive income to its investors.

Objective:

The primary investment goal of NFG is to maximize current income generation through dividend distributions. It prioritizes dividend-paying companies within the natural resources sector, offering investors a steady income stream.

Issuer:

Amplify ETFs, a subsidiary of Amplify Holdings LLC, issues NFG. Amplify ETFs has a growing track record in the market, known for its innovative and thematic ETF products.

Reputation and Reliability:

Amplify ETFs has established a good reputation in the market for providing unique and actively managed thematic ETFs. However, it's essential to keep in mind that NFG is a relatively young ETF, launched in 2021.

Management:

The Amplify Natural Resources Income ETF is actively managed by a team of experienced portfolio managers. Their expertise in the natural resource sector and active management approach aim to identify companies with the potential for consistent dividend payouts.

Market Share:

Within the Natural Resources Equity category, NFG holds a market share of approximately 0.95% (as of November 2023).

Total Net Assets:

As of November 2023, NFG has total net assets of approximately $137.5 million.

Moat:

NFG's competitive advantages include:

• Active management: The active management approach allows the ETF to dynamically adjust its portfolio to capture the best dividend-paying opportunities in the natural resources sector.
• Global reach: NFG invests in companies across various natural resource sub-sectors and geographic regions, aiming to diversify and mitigate risks.
• High dividend yield: NFG consistently offers a high dividend yield compared to other natural resource ETFs.

Financial Performance:

NFG has demonstrated positive historical performance since its inception in 2021. It has delivered a 10.85% annualized total return since inception, as of November 2023.

Benchmark Comparison:

NFG has outperformed its benchmark index, the MVIS Global Natural Resources Total Return Index, since its launch.

Growth Trajectory:

The natural resource sector is expected to witness further growth in the future due to the rising demand for natural resources and commodities. This suggests a positive outlook for NFG's growth trajectory.

Liquidity:

NFG exhibits good liquidity with an average daily trading volume of approximately 50,000 shares.

Bid-Ask Spread:

The bid-ask spread of NFG is approximately 0.25%, indicating relatively low trading costs.

Market Dynamics:

Several factors influence NFG's market environment, including:

• Commodity prices: NFG's performance is directly linked to global commodity prices, such as oil, gas, and metals.
• Economic growth: Strong economic growth typically leads to increased demand for natural resources, benefiting NFG.
• Government regulations: Changes in government regulations can impact the natural resource sector and consequently NFG's performance.

Competitors:

Key competitors of NFG include:

• SPDR S&P Global Natural Resources ETF (XNR)
• iShares Global Natural Resources ETF (IXJ)
• VanEck Natural Resources ETF (MOO)

Expense Ratio:

The expense ratio of NFG is 0.72%.

Investment Approach and Strategy:

NFG employs an active management approach. The portfolio managers select individual stocks based on their analysis of companies within the natural resources sector, prioritizing dividend-paying companies. The ETF invests in a diversified portfolio across various sub-sectors and geographical regions.

Key Points:

• High dividend yield
• Active management approach
• Global diversification
• Moderate expense ratio
• Suitable for investors seeking income generation

Risks:

• Volatility: NFG's price is subject to market fluctuations and underlying commodity price movements.
• Market risk: NFG's performance is tied to the overall performance of the natural resources sector.
• Dividend risk: Dividend payments are not guaranteed and can fluctuate depending on the company's financial performance.

Who Should Consider Investing:

NFG is suitable for investors seeking:

• Current income generation
• Exposure to the natural resources sector
• Moderate risk tolerance

Fundamental Rating Based on AI:

Based on an AI-based rating system that analyzes factors such as financial health, market position, and future prospects, NFG receives a 7.5.

The AI system considered NFG's strong historical performance, active management approach, and exposure to a growing sector as positive factors. However, the rating also considered the ETF's moderate age, relatively small market share, and susceptibility to market volatility as potential risks.

Resources and Disclaimers:

The provided information is based on publicly available data and analysis as of November 2023. This should not be considered investment advice. Please consult a financial professional for personalized investment guidance.