Amplify High Income ETF (YYY)

ETF Amplify High Income ETF Overview:

Profile:

• Target Sector: Global Fixed Income
• Asset Allocation: Focuses on high-yield bonds and preferred stocks
• Investment Strategy: Actively managed, seeking high income and capital appreciation through a diversified portfolio of debt securities.

Objective:

• To provide investors with high current income and capital appreciation potential through exposure to a diversified portfolio of high-yield bonds and preferred stocks.

Issuer:

• Company: Amplify ETFs
• Reputation & Reliability: Amplify ETFs is a relatively new ETF issuer launched in 2017. While they have a growing product portfolio, their overall market presence and track record are less established compared to larger, more experienced issuers.
• Management: The ETF is managed by Amplify’s experienced portfolio management team, led by Christian Magoon and David Komm. Magoon has over 20 years of experience in fixed income markets, while Komm has extensive experience in portfolio management and trading.

Market Share:

• Amplify High Income ETF has a relatively small market share within the High Yield Bond ETF category, with approximately 0.2% as of November 2023.

Total Net Assets:

• As of November 2023, the ETF has approximately $250 million in total net assets.

Moat:

• Active Management: The ETF's active management approach allows for greater flexibility in portfolio construction and the potential to outperform the benchmark.
• Focus on High Yield: The ETF's focus on high-yield bonds and preferred stocks offers the potential for higher income generation compared to traditional bond ETFs.

Financial Performance:

• The ETF has a relatively short track record, having launched in 2021.
• Since its inception, the ETF has outperformed its benchmark, the ICE BofA US High Yield Constrained Index, generating a total return of approximately 10% compared to the benchmark's 7% return as of November 2023.

Benchmark Comparison:

• The ETF's outperformance against its benchmark suggests that the active management approach has been successful in generating alpha.

Growth Trajectory:

• The High Yield Bond ETF market is a growing segment within the fixed income ETF space.
• Amplify High Income ETF's strong performance and active management approach could attract further investor interest, potentially leading to future growth.

Liquidity:

• Average Daily Trading Volume: Approximately 30,000 shares
• Bid-Ask Spread: Tight, typically around 0.05%

Market Dynamics:

• Interest Rate Risk: The ETF is sensitive to changes in interest rates, as rising rates can negatively impact the value of fixed income investments.
• Credit Risk: The ETF invests in high-yield bonds, which carry a higher risk of default than investment-grade bonds.
• Market Volatility: The ETF's performance can be affected by overall market volatility.

Competitors:

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG) - Market Share: 35%
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK) - Market Share: 20%
• VanEck Merk High Income ETF (HYLD) - Market Share: 5%

Expense Ratio:

• 0.65%

Investment Approach and Strategy:

• Strategy: Actively managed, seeking high income and capital appreciation through a diversified portfolio of high-yield bonds and preferred stocks.
• Composition: The ETF invests in a globally diversified portfolio of high-yield bonds and preferred stocks across various sectors and industries.

Key Points:

• Actively managed ETF with a focus on high-yield bonds and preferred stocks.
• Has outperformed its benchmark since inception.
• Relatively small market share but growing, with potential for further upside.

Risks:

• Interest rate risk, credit risk, and market volatility can negatively impact the ETF's performance.

Who Should Consider Investing:

• Investors seeking high current income and potential for capital appreciation.
• Investors with a higher risk tolerance and a long-term investment horizon.
• Investors seeking an actively managed high-yield bond ETF with a proven track record of outperformance.

Fundamental Rating Based on AI:

• Based on an AI analysis of the factors mentioned above, Amplify High Income ETF receives a 7 out of 10 rating. This rating considers the ETF's strong performance, active management approach, and competitive expense ratio. However, the rating also acknowledges the ETF's small market share and relatively short track record.

Resources and Disclaimers:

• Amplify High Income ETF website: https://amplifye...
• Morningstar ETF report: https://www.morningstar.co...
• Yahoo Finance: https://finance.yahoo.co...
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.