The combination of an Average People Pillar rating and a Below Average Process Pillar rating limit  Amplify Lithium & Battery Tech ETF to a Morningstar Medalist Rating of Negative.  The portfolio maintains a cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The strategy receives a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in volatility exposure and an underweight in yield exposure compared with category peers. High volatility exposure is attributed to companies with a higher standard deviation of returns. And a low yield exposure is rooted in holding fewer stocks with high dividend or buyback yields -- instead, typically holding stocks in an early stage of development. The team managing the passive strategy earns the strategy an Average People Pillar rating. The strategy's parent organization earns the firm a Below Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

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Anthem

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Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Amplify Lithium & Battery Tech ETF earns a Below Average Process Pillar rating. The process benefits from tracking an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. However, the rating is weakened by the fund's unremarkable long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks investment results that generally correspond to the price and yield of the EQM Lithium & Battery Technology Index.  The fund will normally invest at least 80% of its net assets in the securities that comprise the index. The index seeks to provide exposure to global companies deriving material revenue associated with the development and production and use of lithium battery technology. It is non-diversified. 

 The portfolio is overweight in consumer cyclical and industrials relative to the category average by 18.8 and 14.9 percentage points, respectively. The sectors with low exposure compared to category peers are energy and basic materials, underweight the average by 27.8 and 7.6 percentage points of assets, respectively. The portfolio is composed of 86 holdings and is quite concentrated. In particular, 43.6% of the strategy's assets are housed within the top 10 holdings, versus the category’s 23.9% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 42% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Below Average

Process

Amplify’s team receives An Average People Pillar rating. The main contributor to the rating is the firm's five-year retention rate of 93%. The size of the portfolio management team also supports the rating. With two portfolio managers, the fund is reasonably well-resourced. Lastly, the rating is limited by the managers' failure to consistently outperform peers at the funds they run, as measured by their combined three-year manager excess returns.

Average

People

While differentiated from much of the competition, Amplify ETFs' concentrated lineup of largely thematic exchange-traded funds harbors considerable risk. It earns a Below Average Parent Rating.

Amplify targets niches not previously explored by larger ETF firms. This leads to product launches in relatively narrow parts of the market like cannabis, online retail, and battery technology. A recent acquisition of 12 mostly thematic ETFs from ETF Managers Group only enhances this focus. Products like these tend to be extremely concentrated and volatile, inviting significant risks to their investors, not the least of which are ill-timed purchases and sales. Because of these risks, product success is unpredictable and leads to more closures than there are among traditional strategies. Since its 2016 founding, Amplify has merged or liquidated several ETFs that failed to gain traction or produced poor results.

Five subadvisors are responsible for the day-to-day management of Amplify's 29 ETFs. The firm regularly reviews subadvisor activity and performance and risk data but does not have a dedicated risk management team. Overall, its subadvisory relationships seem to emphasize product development and distribution rather than long-term, proven investment merit.

Amplify ETFs does what it sets out to do—offer investors differentiated ETF strategies—and leadership comes with considerable ETF experience. The firm's ETFs are not cheap but neither are they particularly pricey. Many levy category-competitive fees. Few of Amplify's ETFs should be considered core holdings, but they can serve a purpose for investors seeking specific exposures so long as shareholders understand the risks embedded.

Parent

Amplify Lithium & Battery Technology ETF

BATT tracks a market-cap-weighted index that invests in global advanced battery material companies such as those that mine or produce lithium, cobalt, nickel, manganese, and graphite.

Piedmont Lithium

Sociedad Quimica Y Minera De Chile

Lithium prices may be bottoming out, creating a big opportunity for some of the top lithium stocks to buy now. For one, analysts at UBS and Goldman Sachs just cut their 2024 supply estimates by 33% and 26%, respectively, says Mining.com.

3 Lithium Stocks to Buy Now: Q2 Edition

Arcadium Lithium PLC

Atlas Lithium Inc

Sprott Lithium Miners ETF

Beaten-down lithium prices aren't sustainable. In fact, according to  The Wall Street Journal , prices have fallen too much to cover the cost of supply needed for electric vehicles (EVs).

7 Lithium Stocks to Buy on the Dip: March 2024

7 Lithium Stocks to Buy on the Dip: April 2024

iShares Lithium Miners and Producers ETF

Global X Lithium & Battery Tech ETF

Crisis will turn into an opportunity for lithium stocks. That's because supply issues are only temporary.

7 Lithium Stocks Ready for a Major Comeback

QuantumScape

Battery stocks may be one of the most boring opportunities out there. But with the world fighting to go green, demand makes these top battery stocks to buy must-haves.

The Top 3 Battery Stocks to Buy in March 2024

ALPS Clean Energy ETF

SPDR S&P Kensho Clean Power ETF

Optica Rare Earth & Critical Materials ETF

Global X CleanTech ETF

Proshares S&P Kensho Cleantech ETF

Global X Funds-Global X Disruptive Materials Etf

Fidelity Clean Energy ETF

VanEck Green Metals ETF

Defiance Next Gen H2 ETF

Direxion Hydrogen ETF

Global X Hydrogen ETF

iShares Global Clean Energy ETF

Invesco Global Clean Energy Portfolio

First Trust NASDAQ Clean Edge Green Energy Index Fund

Global X Solar ETF

VanEck Rare Earth/Strategic Metals ETF

Global X Renewable Energy Producers ETF

Trueshares Eagle Global Renewable Energy Income ETF

VanEck Low Carbon Energy ETF

Invesco Solar ETF

Volcon

WisdomTree Battery Value Chain and Innovation Fund

Global X Wind Energy ETF

Invesco MSCI Sustainable Future ETF

Investors who piled into clean energy themes the last few years are experiencing some performance pain this year, as we appear to be experiencing a detour on the road to the clean energy transition. Related themes have been hard hit this year due to a confluence of events.

A Detour on the Road to the Clean Energy Transition

Proshares S&P Global Core Battery Metals ETF

Lithium Americas Argentina Corp

Sigma Lithium Corp

Wesfarmers Ltd

Lithium carbonate spot prices were generally flat the past month. Lithium market news - Fastmarkets forecast a tentatively balanced lithium market in 2024. US moves to restore stockpiling ‘panic button' in EV metals fight with China. Lithium company news - Albemarle plans to reduce capital expenditures, costs to unlock >US$750M of cash flow. Tianqi Lithium issues large negative profit warning.

Lithium Miners News For The Month Of February 2024

Standard Lithium Ltd

Lithium prices have been crushed. But that'll happen with oversupplied markets, and lower demand for electric vehicles thanks to higher interest rates.

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Microvast Holdings

With the world fighting to go green, battery stocks are becoming far more attractive. After all, batteries play an essential role in the world's move to renewable energy.

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The Amplify Lithium & Battery Technology ETF focuses on companies involved in battery metals production, EVs, and battery technology and manufacturing. However, battery metals pricing is currently very weak, and the supply of key battery metals is expected to continue to outpace demand in 2024. Falling battery prices are good for consumers as EV prices are falling. But that is not good news for #2 holding Tesla, which has seen margins and earnings drop significantly.

BATT: Falling Metal Prices Great For EV Consumers, Headwind For ETF

Arrival Group

AYRO

Blue Bird

Blink Charging

Bayerische Motoren Werke AG

BYD Company Limited

BYD Co Ltd

Electric Last Mile Solutions, Inc.

Envirotech Vehicles Inc

Ford Motor Company

First Trust China AlphaDEX Fund

Fisker

Subaru Corp

Geely Automobile Holdings Ltd

General Motors

Canoo

GreenPower Motor Co.

Honda

Hyliion

Global electric car sales Nov. 2023 up 31%YoY to 19% share. China sales up 39% to 42% share. Europe down 2% to 26% share. USA up 30.6% to 9.23% share. EV market news - Electric vehicle sales in US to hit record in 2023. U.S proposes Foreign Entity Of Concern ("FEOC") rules. Canada to ban ICE cars/trucks by 2035. EV company news - BYD Co hits target selling 3.01m units in 2023. Tesla expanding Giga Shanghai ready for $25,000 Model 2, confirms over 2m Cybertruck pre-orders, hits 1.8m target.

EV Company News For The Month Of December 2023

Honeywell

NextEra Energy

Panasonic Holdings Corp

Solid Power

The attractiveness of battery stocks cannot be overstated in today's quickly shifting industry. This sector, which is the backbone of the electrification revolution, is transforming sectors ranging from automotive to energy storage.

7 Battery Stocks to Make You the Millionaire Next Door: 2024 Edition

American Lithium Corp

Livent Corp

Crisis became an opportunity for lithium stocks.  In fact, as I noted on Dec. 13 , “I'd use the temporary, excessive fear as an opportunity.

Best Lithium Stocks 2024: 7 to Add to Your Must-Buy List

Lithium chemical spot prices and spodumene prices were lower the past month and are now below the marginal cost of production. Lithium market news - China Futures Co. analyst, Zhang Weixin, forecasts lithium carbonate to bottom out between CNY80-90,000/t. Milei looks to cut costs for Argentina's miners in broader deregulation push. Lithium company news - SQM and Hancock enter into implementation deed with Azure Minerals. Livent and Allkem shareholders approve merger of equals, new company name to be Arcadium Lithium.

Lithium Miners News For The Month Of December 2023

Global X Artificial Intelligence & Technology ETF

Global X Cybersecurity ETF

Bitwise Web3 ETF

Roundhill Generative AI & Technology ETF

First Trust NASDAQ Cybersecurity ETF

Loncar Cancer Immunotherapy ETF

VanEck Video Gaming and eSports ETF

Amplify Cybersecurity ETF

iShares Genomics Immunology and Healthcare ETF

iShares Cybersecurity and Tech ETF

TrueShares Technology, AI and Deep Learning ETF

Roundhill Ball Metaverse ETF

MUSQ Global Music Industry ETF

Defiance Quantum ETF

ALPS Medical Breakthroughs ETF

Robo Global Artificial Intelligence ETF

SoFi Web 3 ETF

WisdomTree Cybersecurity Fund

Wisdomtree Artificial Intelligence And Innovation Fund

To use a holiday analogy, I have been checking lists and checking them twice to figure out which of next year's top disruptive investment themes are likely to be nice.

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Alerian MLP ETF

GraniteShares HIPS US High Income ETF

ROBO Global Healthcare Technology and Innovation ETF

Amplify Online Retail ETF

ROBO Global Robotics and Automation ETF

ALPS Sector Dividend Dogs ETF

It's the time of year when you look back at all that's been accomplished. VettaFi's covered strong net inflows into fixed income ETFs, covered call funds, and many, many, many new product launches.

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ARK Genomic Revolution Multi-Sector ETF

VanEck Vectors Biotech ETF

SPDR Bloomberg 1-3 Month T-Bill ETF

PIMCO Active Bond ETF

Amplify Seymour Cannabis ETF

Global X Autonomous & Electric Vehicles ETF

Alerian Energy Infrastructure ETF

First Trust Global Wind Energy ETF

Global X Genomics & Biotechnology ETF

iShares Core High Dividend ETF

iShares Nasdaq Biotechnology ETF

iShares Core S&P Small Cap ETF

iShares U.S. Home Construction ETF

iShares Russell 2000 ETF

Adasina Social Justice All Cap Global ETF

KraneShares Electric Vehicles & Future Mobility Index ETF

KraneShares Global Carbon ETF

PIMCO Enhanced Short Maturity Active ETF

Invesco Dynamic Building & Construction ETF

Invesco S&P 500 Equal Weight ETF

Good morning, VettaFi Voices! We are a week out from the VettaFi 2024 Market Outlook Symposium on December 14, which will feature a range of ETF industry leaders discussing their expectations for different areas of the financial markets and the economy in 2024.

VettaFi Voices On: The Outlook for 2024

First Trust NASDAQ Global Auto Index Fund

Defiance Hotel Airline and Cruise ETF

Global X Funds - Global X E-commerce ETF

Goldman Sachs Future Consumer Equity ETF

First Trust S-Network E-Commerce ETF

US Global Jets ETF

Kraneshares Global Luxury Index ETF

Tema Luxury ETF

Roundhill S&P Global Luxury Etf

Proshares Online Retail ETF

Innovator Hedged TSLA ETF

United States Gasoline Fund LP

United States Oil Fund LP

Vanguard Consumer Discretionary ETF

Vanguard Consumer Staples ETF

Consumer Staples Select Sector SPDR Fund

Consumer Discretionary Select Sector SPDR Fund

SPDR S&P Retail ETF

Good morning, VettaFi Voices! Last Friday, the holiday shopping season kicked off in earnest (while I hunkered down in my house eating turkey sandwiches and waited for the initial frenzy to pass).

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Lithium stocks have taken a beating thanks to over-supply. But don't let that chase you away.

If You Can Only Buy One Lithium Stock in December, It Better Be One of These 3 Names

Lithium chemical spot prices and spodumene prices were significantly lower the past month. Lithium market news - Australia's largest lithium mine flags output cut on weak China demand. SQM announces acquisition offer for Azure Minerals for ~US$900m. Lithium company news - Allkem and Livent receive all required regulatory approvals globally to close merger of equals. Sayona Mining announces new high-grade zones encountered in NAL drilling.

Lithium Miners News For The Month Of November 2023

Freyr Battery Inc

ESS Tech

Investors have many ways to play the “green wave,” or the pivot to a net-zero carbon world, but alongside EV stocks, hydrogen fuel cell stocks, solar stocks and other renewable energy plays, battery stocks are another strong choice. A big reason is that the pivot away from fossil fuels will not happen without advanced battery technology.

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ARK Innovation ETF

Proshares Bitcoin & Ether Strategy Etf

ProShares Bitcoin Strategy ETF

Global X Blockchain ETF

Amplify Transformational Data Sharing ETF

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VanEck Vectors Digital Transformation ETF

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Global X Telemedicine & Digital Health ETF

Vaneck Ethereum Strategy Etf

Good Morning, VettaFi Voices! Disruptive innovation is a popular topic, and it encompasses everything from bitcoin and cryptocurrency to electric vehicles to artificial intelligence.

VettaFi Voices On: Accessing Disruptive Innovation

News for Amplify Lithium & Battery Technology ETF ETF (BATT)