Amplify ETF Trust - Amplify BlackSwan Tech & Treasury ETF (QSWN)

ETF Summary: Amplify ETF Trust - Amplify BlackSwan Tech & Treasury ETF (SWAN)

Profile: SWAN is an actively managed exchange-traded fund (ETF) launched in October 2022. It primarily focuses on a unique blend of exposure to technology companies and U.S. Treasuries, aiming to capitalize on both growth and stability. The ETF utilizes a dynamic allocation strategy, adjusting its holdings based on market conditions.

Objective: SWAN's primary objective is to achieve long-term capital appreciation by investing in a portfolio of U.S. Treasury securities and equities issued by companies within the technology sector. It aims to provide investors with exposure to potential tech sector growth while mitigating downside risk through its Treasury component.

Issuer: The ETF is issued by Amplify ETF Trust, a subsidiary of Exchange Traded Concepts, LLC.

• Reputation and Reliability: Amplify ETF Trust is a relatively new player in the ETF market, established in 2020. However, its parent company, Exchange Traded Concepts, has a longer history and manages several other ETFs with a good track record.
• Management: The ETF is actively managed by the portfolio management team at Exchange Traded Concepts, led by CIO Christian Magoon, who possesses extensive experience in the financial industry.

Market Share: SWAN is a niche ETF within the tech and Treasury sector, with a relatively small market share compared to broader technology or fixed income ETFs.

Total Net Assets: As of November 7, 2023, SWAN has approximately $17.5 million in total net assets.

Moat: SWAN's unique strategy, combining tech exposure with a Treasury hedge, offers a potential competitive advantage. This approach may appeal to investors seeking a differentiated approach to managing risk in their technology investments.

Financial Performance: Since its inception in October 2022, SWAN has experienced positive returns. However, due to its short history, evaluating long-term performance trends remains challenging.

Benchmark Comparison: SWAN is not directly comparable to a single benchmark due to its unique composition. However, its performance can be compared to a blend of tech-focused and fixed-income indices to assess its relative effectiveness.

Growth Trajectory: Given its recent launch, determining SWAN's long-term growth trajectory is premature. The ETF's success will depend on its ability to attract investors and deliver on its stated objectives.

Liquidity: SWAN's average daily trading volume is moderate, indicating reasonable liquidity for investors looking to enter or exit positions. The bid-ask spread is also relatively tight, suggesting efficient trading.

Market Dynamics: The ETF's market environment is influenced by factors such as technology sector performance, interest rate movements, and overall economic conditions. These factors can impact both the tech and Treasury components of SWAN's portfolio.

Competitors: SWAN faces competition from various tech-focused ETFs and fixed income ETFs. Some key competitors include:

• Invesco QQQ Trust (QQQ)
• Vanguard Information Technology ETF (VGT)
• iShares U.S. Treasury Bond ETF (GOV)

Expense Ratio: SWAN has an expense ratio of 0.75%, which is slightly higher than some comparable ETFs but still considered reasonable.

Investment Approach and Strategy:

• Strategy: SWAN employs an active management strategy, aiming to outperform a benchmark index by dynamically adjusting its portfolio composition.
• Composition: The ETF typically holds a mix of U.S. Treasury securities with maturities ranging from 1 to 3 years and equities issued by technology companies.

Key Points:

• Unique blend of tech and Treasury exposure
• Actively managed strategy
• Moderate liquidity
• Higher expense ratio than some competitors

Risks:

• Volatility: The ETF's portfolio is exposed to both equity and interest rate risk, leading to potential volatility.
• Market Risk: SWAN's performance is dependent on the performance of technology companies and U.S. Treasuries.

Who Should Consider Investing:

• Investors seeking a combination of tech sector growth and Treasury stability.
• Investors with a moderate risk tolerance.
• Investors comfortable with actively managed funds.

Fundamental Rating Based on AI:

Based on an AI analysis considering financial health, market position, and future prospects, SWAN receives a 7 out of 10. This rating highlights the ETF's unique approach, experienced management team, and potential for growth. However, its short track record, higher expense ratio, and exposure to market risks warrant further consideration before investing.

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

Sources:

• Amplify BlackSwan Tech & Treasury ETF website: https://amplifyeta.com/etfs/swan/
• Yahoo Finance: https://finance.yahoo.com/quote/SWAN/
• ETF Database: https://etfdb.com/etf/SWAN/