Amplify ETF Trust assumes control of YieldShares High Income ETF

Oct 7th, 2019 | By | Category: Alternatives / Multi-Asset

Amplify ETFs has announced that the $230 million YieldShares High Income ETF (YYY US), a passively managed fund providing high levels of income by investing in closed-end funds (CEFs), has become part of the Amplify ETF Trust.

Christian Magoon, CEO of Amplify ETFs.

Christian Magoon, CEO of Amplify ETFs.

The move sees the fund transition from the auspices of the Exchange Traded Concepts Trust, having been launched through a partnership between YieldShares and white-label ETF issuer Exchange Traded Concepts in June 2013.

The ETF was the debut product of YieldShares, an ETF sponsor focused on income-based investment solutions, which was founded by industry veteran Christian Magoon.

Magoon went on to also launch Amplify ETFs which acquired YieldShares in 2016. Amplify ETFs focuses on delivering products targeting niche market segments, while the platform has also been used to introduce new income strategies that carry both firms’ brands.

To reflect the conversion of the YieldShares High Income ETF to the Amplify ETF Trust, the fund has been renamed the Amplify High Income ETF. The ETF’s ticker, underlying index, investment objective, and management fee remain unchanged.

Amplify ETFs, which has been servicing, marketing, and supporting the product as sub-adviser since 2016, will now act as adviser to the fund.

The fund’s incorporation brings the number of Amplify ETFs to ten and raises the firm’s collective assets under management to approximately $750m. The ETF represents Amplify ETFs’ second-largest fund, slightly smaller than the $240m Amplify Online Retail ETF (IBUY US).

Magoon commented, “Given the success of YYY, we are thrilled to have the fund formally become a part of the Amplify ETF Trust. As an income-oriented product, YYY is a great complement to our thematic ETF line-up. This move is a seamless transition for clients and we look forward to continuing to provide the value that YYY has delivered to shareholders over the years.”

Methodology

The Amplify High Income ETF tracks the ISE High Income Index which was developed through a partnership between YieldShares and exchange operator and index provider International Securities Exchange.

The index measures the performance of the top 30 US exchange-listed CEFs, as selected and ranked according to factors designed to result in a portfolio that produces high current income. In choosing CEFs for selection, the index assesses several variables including market capitalization, yield, discount to Net Asset Value (NAV), and liquidity.

This investment approach results in a portfolio that seeks to provide a high level of income on a monthly basis and contains a variety of asset classes, investment strategies, and asset managers.

The ETF comes with an expense ratio of 2.28% which consists of a 0.50% management fee as well as 1.78% in acquired fund fees and expenses.

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