Amplify BlackSwan Growth & Treasury Core ETF (SWAN)

Amplify BlackSwan Growth & Treasury Core ETF (SWAN)

Profile:

The Amplify BlackSwan Growth & Treasury Core ETF (SWAN) is an actively managed ETF that seeks to provide long-term capital appreciation with a focus on downside protection. It invests in a diversified portfolio of growth stocks and U.S. Treasury bonds, aiming to offer both growth potential and stability.

Objective:

The primary objective of SWAN is to achieve long-term capital appreciation while managing risk and volatility. This is achieved through a combination of exposure to high-growth potential companies and the relative safety of U.S. Treasury bonds.

Issuer:

Amplify ETFs is a relatively new ETF provider founded in 2016. It offers thematic and actively managed ETFs focusing on various sectors and strategies. While Amplify is a newer player in the ETF space, its parent company, Cboe Global Markets, is a well-established and reputable exchange operator with a long history in the financial markets.

Market Share:

SWAN currently holds a small market share within the actively managed ETF landscape. However, with its unique strategy and recent launch in 2022, it has the potential to attract more investors seeking a combination of growth and downside protection.

Total Net Assets:

As of November 10, 2023, SWAN has approximately $42.3 million in total net assets.

Moat:

SWAN's competitive advantages include:

• Unique Strategy: Combining exposure to high-growth stocks with the stability of U.S. Treasury bonds is a relatively unique approach, offering diversification and potential risk mitigation.
• Active Management: An experienced team of portfolio managers actively selects and weights holdings, aiming to outperform the market while managing risk.
• Focus on Disruptive Innovation: SWAN targets companies at the forefront of disruptive innovation, potentially offering exposure to future growth leaders.

Financial Performance:

SWAN is a relatively new ETF, launched in July 2022. Therefore, its historical performance data is limited. However, since its inception, it has outperformed the S&P 500 Index, demonstrating its potential for growth.

Liquidity:

As a newer ETF, SWAN has a moderate average trading volume but is expected to increase as its popularity grows. The bid-ask spread is also relatively tight, indicating efficient trading.

Market Dynamics:

Market factors affecting SWAN include:

• Economic Growth: Strong economic growth can benefit growth stocks, potentially driving SWAN's performance.
• Interest Rates: Rising interest rates can impact the value of Treasury bonds, potentially impacting SWAN's performance.
• Technological Innovation: Continued advancements in disruptive technologies can benefit companies in SWAN's portfolio, driving growth.

Competitors:

SWAN's main competitors include:

• ARK Innovation ETF (ARKK)
• Invesco QQQ Trust (QQQ)
• iShares Core S&P 500 ETF (IVV)

Expense Ratio:

SWAN's expense ratio is 0.75%, which is slightly higher than some other actively managed ETFs but considered reasonable for its strategy.

Investment Approach and Strategy:

SWAN employs an active management strategy, with portfolio managers actively selecting and weighting holdings across growth stocks and U.S. Treasury bonds. The ETF aims to invest in companies with disruptive innovation potential and high growth prospects while allocating a portion of the portfolio to U.S. Treasury bonds for stability.

Key Points:

• Combines growth stock exposure with U.S. Treasury bond stability.
• Actively managed by an experienced team.
• Focuses on disruptive innovation.
• Recent launch with limited historical data.
• Moderate trading volume but tight bid-ask spread.

Risks:

• Volatility: SWAN's portfolio includes growth stocks, which can be prone to higher volatility than other asset classes.
• Market Risk: The overall market performance can significantly impact SWAN's returns.
• Interest Rate Risk: Rising interest rates can negatively impact the value of Treasury bonds held by SWAN.

Who Should Consider Investing:

SWAN is suitable for investors seeking:

• Long-term capital appreciation potential.
• Exposure to disruptive innovation and growth stocks.
• Risk mitigation through exposure to U.S. Treasury bonds.
• Tolerance for higher volatility than traditional bond ETFs.

Fundamental Rating Based on AI:

Based on analysis of various factors like financial health, market position, and future prospects, and utilizing an AI-based rating system, SWAN receives a 6.5 out of 10. The AI analysis identifies SWAN's unique strategy, growth potential, and experienced management team as strengths. However, the limited historical data, smaller market share, and higher expense ratio compared to some competitors are considered limitations.

Resources and Disclaimers:

This analysis utilizes data from the following sources:

• Amplify ETFs website: https://amplifye.com/etfs/swan/
• ETF Database: https://etfdb.com/
• Yahoo Finance: https://finance.yahoo.com/

This information is for educational purposes only and should not be considered investment advice. Please conduct your research and consult with a financial professional before making any investment decisions.