Amplify ETFs acquires YieldShares

Sep 8th, 2016 | By | Category: ETF and Index News

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New exchange-traded fund issuer Amplify ETFs has acquired YieldShares in a move that will see the two firms combine their specialist development strategies to launch a range of new, jointly branded ETFs. Amplify ETFs focuses on delivering products targeting niche market segments while YieldShares focuses on income investment strategies.

Amplify ETFs acquires YieldShares; jointly-branded ETFs in the pipeline

Christian Magoon, founder of YieldShares and Amplify ETFs.

Christian Magoon, CEO and founder of Amplify ETFs and founder of YieldShares, commented: “Our long-standing goal has been to assimilate the YieldShares brand into our broader buildout of the Amplify platform. Making YieldShares a wholly-owned subsidiary of Amplify allows the firm to align our product suite with the brands that best represent the underlying strategies. YieldShares will serve as Amplify’s sub-brand of income-oriented investment strategies that are additive to the ETF marketplace.”

YieldShares is the sponsor of the YieldShares High Income ETF (NYSE Arca: YYY), which has grown to over $110m in assets under management since its launch in June 2013. The fund tracks the ISE High Income Index, comprised of 30 closed-end funds ranked highest by the International Securities Exchange in three criteria: fund yield, discount to net asset value and liquidity. It has a total expense ratio of 1.86%.

“Given the record-low interest rate environment and the surge in Baby Boomer retirements, investors continue to seek access to income-focused investments,” added Magoon. “We see the steady growth of the flagship YieldShares product as confirmation that the market has appetite for new products designed to meet investors’ income objectives.”

Amplify ETFs launched its first fund in April this year, the Amplify Online Retail ETF (NASDAQ: IBUY), which invests in globally-listed companies that generate at least 70% of their revenue from online and virtual retail sales. The ETF tracks the performance of the EQM Online Retail Index. Unlike the YieldShares ETF, the Amplify Online Retail ETF is struggling to gain traction, having gathered less than $3m from investors.

Amplify ETFs and YieldShares have also announced plans to launch two new income-focused ETFs later in the year – the Amplify YieldShares Prime 5 Dividend ETF and the Amplify YieldShares CWP Dividend & Option Income ETF.

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