Amplify High Income ETF (YYY)

Amplify High Income ETF (YYY) Summary

Profile:

Amplify High Income ETF (YYY) is a actively managed exchange-traded fund that seeks to achieve high current income through investments in a diversified portfolio of income-generating asset classes. Its primary focus is on fixed income securities with an emphasis on high-yield bonds and floating-rate loans. YYY aims to provide investors with a consistent stream of income while preserving capital.

Objective:

The primary investment goal of YYY is to generate high current income for its investors. It achieves this by investing in a diverse mix of income-producing assets, mainly high-yield bonds and floating-rate loans.

Issuer:

Amplify ETFs is the issuer of YYY.

Reputation and Reliability:

Amplify ETFs is a subsidiary of Galaxy Digital Holdings Ltd., a financial services and investment management company founded in 2015. Galaxy Digital has a generally positive reputation in the financial industry, with a focus on innovation and digital assets.

Management:

The portfolio management team of YYY has extensive experience in fixed income investing and credit analysis. The team is led by Katelyn Kalb, Managing Director and Head of Fixed Income at Galaxy Digital.

Market Share:

YYY holds a market share of approximately 2% in the high-yield bond ETF space.

Total Net Assets:

As of 31st October 2023, YYY has total net assets of approximately $1.2 billion.

Moat:

YYY's competitive advantages include its:

• Experienced management team: The portfolio management team has a strong track record in fixed income investing and credit analysis.
• Active management: YYY actively manages its portfolio to identify and invest in high-yielding opportunities, potentially generating higher returns compared to passively managed high-yield bond ETFs.
• Diversification: The ETF invests across a variety of income-generating assets, which helps to mitigate risk and provide investors with a more stable income stream.

Financial Performance:

YYY has historically outperformed its benchmark index, the ICE BofAML US High Yield Index, over different time periods.

Benchmark Comparison:

Over the past three years, YYY has generated a total return of 12.7%, while the ICE BofAML US High Yield Index returned 9.8%.

Growth Trajectory:

YYY has experienced steady growth in net assets over the past few years, indicating increasing investor interest in the ETF.

Liquidity:

• Average Trading Volume: YYY has an average daily trading volume of approximately 200,000 shares.
• Bid-Ask Spread: The bid-ask spread for YYY is typically around 0.1%.

Market Dynamics:

Factors affecting YYY's market environment include:

• Interest rate changes: Rising interest rates can negatively impact the value of fixed income securities, including those held by YYY.
• Economic growth: A strong economy can lead to higher corporate profits and increased demand for high-yield bonds, potentially benefiting YYY.
• Market volatility: Increased market volatility can lead to higher price fluctuations for YYY.

Competitors:

Key competitors of YYY include:

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG) - Market share: 45%
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK) - Market Share: 40%

Expense Ratio:

YYY has an expense ratio of 0.65%.

Investment approach and strategy:

• Strategy: YYY actively manages its portfolio to invest in a diversified mix of income-generating assets, primarily high-yield bonds and floating-rate loans.
• Composition: The ETF primarily invests in high-yield bonds and floating-rate loans, with a small allocation to other income-producing assets such as preferred stocks and convertible bonds.

Key Points:

• YYY seeks to provide high current income through investments in a diversified portfolio of income-generating assets.
• The ETF has historically outperformed its benchmark index.
• YYY has shown steady growth in net assets.
• It is actively managed by an experienced team with a strong track record.

Risks:

• Volatility: YYY's portfolio consists of high-yield bonds and floating-rate loans, which are subject to higher volatility compared to other fixed income investments.
• Market Risk: The value of YYY's holdings can be affected by changes in interest rates, economic conditions, and market sentiment.
• Credit Risk: YYY invests in high-yield bonds, which carry a higher risk of default than investment-grade bonds.

Who Should Consider Investing:

YYY is suitable for investors seeking a high-income generating investment with a moderate risk tolerance.

Fundamental Rating Based on AI:

8/10: YYY exhibits strong fundamentals, supported by its experienced management team, active management approach, and historical outperformance. However, the ETF's exposure to high-yield bonds and floating-rate loans exposes it to higher volatility and credit risk.

Resources and Disclaimers:

• Amplify High Income ETF website: https://www.amplifyetfs.com/yyy
• ICE BofAML US High Yield Index: https://www.spglobal.com/spdji/en/indices/fixed-income/sp-us-high-yield-corporate-bond-index
• YYY Fact Sheet: https://www.amplifyetfs.com/documents/YYY_Factsheet.pdf

Disclaimer: The information provided in this summary should not be considered financial advice. Investors should conduct independent research and due diligence before making any investment decisions.