Amplify Cash Flow High Income ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The strategy earns an Average Process Pillar rating, the result of a recent pillar upgrade from Below Average. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm a Below Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Amplify ETF Trust - Amplify Cash Flow Dividend Leaders ETF

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Amplify Cash Flow High Income ETF earns an Average Process Pillar rating. 

The leading factor in the rating is the firm's five-year retention rate of 93% over the period. The depth of the portfolio management team also strengthens the process. With five portfolio managers, the fund is well-staffed. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 30%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

 The investment strategy as stated in the fund's prospectus is as follows:

The investment seeks to provide investors with current income.  The fund is an actively managed ETF that seeks to achieve its investment objective by investing in shares of the Amplify Cash Flow Dividend Leaders ETF (the “COWS ETF”) and in a portfolio that seeks targeted rates of additional income pursuant to a “Call Income Strategy.” The fund is non-diversified. 

 The portfolio is overweight in energy and consumer cyclical relative to the category average by 16.8 and 12.7 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and healthcare, underweight the average by 15.6 and 9.9 percentage points of assets, respectively. The strategy has only reported a handful of holdings, and is in a category where 27.4% of assets are typically concentrated in the top 10 holdings. And in closing, in terms of portfolio turnover, on a year-over-year basis, 0% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

Amplify Cash Flow High Income ETF earns an Average People Pillar rating. Dustin Lewellyn’s veteran status, with 14 years of listed portfolio management experience, brings a wealth of experience to the table. The average Morningstar Rating of the strategies they currently manage is 2.2 stars, reflecting below-average risk-adjusted performance versus category peers. Dustin Lewellyn has an adequate backdrop of support, drawing on four additional listed managers, averaging nine years of listed portfolio management experience. As a team, they manage two investment vehicles together, with solid long-term prospects. The strategies average a Silver asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha in aggregate. None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors. 

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

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.

Below Average

Parent

Amplify Cash Flow High Income Etf

HCOW is an actively managed fund-of-fund, that invests in US stocks of large- and mid-cap companies while using a naked call option writing strategy to potentially generate additional income.

Amplify Cash Flow Dividend Leaders ETF

Amplify CWP Dividend & Option Income ETF

Amplify International Enhanced Dividend Income ETF

Amplify Natural Resources Dividend Income ETF

Amplify Samsung Sofr Etf

YieldShares High Income ETF

CHICAGO, April 26, 2024 (GLOBE NEWSWIRE) -- Amplify ETFs announces April income distributions for its ETFs. ETF Name Ticker Amount per Share Ex-Date Record Date Payable Date Amplify Cash Flow Dividend Leaders ETF COWS $0.02642 4/26/2024 4/29/2024 4/30/2024 Amplify CWP Enhanced Dividend Income ETF DIVO $0.15316 4/26/2024 4/29/2024 4/30/2024 Amplify Cash Flow High Income ETF HCOW $0.17566 4/26/2024 4/29/2024 4/30/2024 Amplify International Enhanced Dividend Income ETF IDVO $0.15150 4/26/2024 4/29/2024 4/30/2024 Amplify Natural Resources Dividend Income ETF NDIV $0.14025 4/26/2024 4/29/2024 4/30/2024 Amplify Samsung SOFR ETF SOF $0.43152 4/26/2024 4/29/2024 4/30/2024 Amplify High Income ETF YYY $0.12000 4/26/2024 4/29/2024 4/30/2024 About Amplify ETFs Amplify ETFs, sponsored by Amplify Investments, has over $9 billion in assets across its suite of ETFs (as of 3/31/2024).

Amplify ETFs Declares April Income Distributions for its ETFs

CHICAGO, Nov. 28, 2023 (GLOBE NEWSWIRE) -- Amplify ETFs announces November income distributions for its ETFs.

Amplify ETFs Declares November Income Distributions for its ETFs

Alerian MLP ETF

Pacer US Cash Cows 100 ETF

Global X Funds - Global X E-commerce ETF

WisdomTree U.S. Earnings 500 Fund

Amplify Online Retail ETF

iShares S&P 500 Value ETF

iShares Russell 1000 Growth ETF

SPDR S&P Bank ETF

Invesco KBW Bank ETF

Roundhill Magnificent Seven ETF

MUSQ Global Music Industry ETF

Proshares Online Retail ETF

Invesco NASDAQ Internet ETF

iShares MSCI USA Quality Factor ETF

Astoria US Quality Kings Etf

SPDR S&P 500 ETF Trust

SPDR Portfolio S&P 500 Growth ETF

Invesco Solar ETF

Robo Global Artificial Intelligence ETF

Vanguard Financials ETF

VictoryShares Free Cash Flow ETF

Vanguard Growth ETF

Communication Services Select Sector SPDR Fund

Energy Select Sector SPDR Fund

Good morning, VettaFi Voices! Third-quarter earnings announcements have almost come and gone, with yesterday being the last big burst of companies.

VettaFi Voices On: Third-Quarter Earnings Season

CHICAGO, Oct. 27, 2023 (GLOBE NEWSWIRE) -- Amplify ETFs announces October income distributions for its ETFs.

Amplify ETFs Declares October Income Distributions for its ETFs

Bondbloxx USD High Yield Sector Rotation

Parabla Innovation Etf

AdvisorShares Newfleet Multi-Sector Income ETF

Strategy Shares Halt Climate Change ETF

Principal International Adaptive Multi-Factor ETF

Highland iBoxx Senior Loan ETF

FT Cboe Vest US Equity Moderate Buffer ETF - September

Subversive Cannabis ETF

Western Asset Bond ETF

FT Cboe Vest US Equity Buffer & Premium Income ETF - September

Invesco BulletShares 2033 Corporate Bond ETF

Invesco BulletShares 2031 High Yield Corporate Bond ETF

Invesco BulletShares 2033 Municipal Bond ETF

Marketdesk Focused US Dividend ETF

The week ending Sept. 22 marks a strong post-summer resurgence for the industry, with 25 new ETF launches in all.

This Week in ETFs: Launches Ramp Up

News for Amplify Cash Flow High Income Etf ETF (HCOW)