Amplify ETFs, the sponsor of the income-oriented YieldShares brand of funds, has announced significant changes to the investment objective underlying the Amplify YieldShares Prime 5 Dividend ETF (Bats: PFV).

YieldShares is a range of ETFs specifically made for income-seeking investors.

PFV used to invest in a basket of five dividend-focused ETFs selected based on their yields, volatility levels and costs; however, as of 29 August 2017, the fund switched index to the Prime Senior Loan and Income CEF Index which is designed to provide targeted exposure to closed-end funds (CEFs) that invest at least 80% of their assets in floating rate senior loans and other floating rate instruments, pay dividends and are listed in the United States. The new index is maintained and sponsored by Prime Indexes.

CEFs are collective investment models based on issuing a fixed number of shares which are not redeemable from the fund. These listed investment vehicles often trade at a premium or discount to NAV as a result of market technicals and sentiment.

To reflect the change in index, the fund has been renamed the Amplify YieldShares Senior Loan and Income ETF. It is still listed and traded on Bats Exchange but has changed its ticker symbol to YESR.

YESR comes with a significantly higher expense ratio, costing 2.15% compared to PFV’s 0.45%. While that represents an over 370% increase in price, YESR’s expense ratio is actually in line with similar ETFs due to the costs involved in acquiring the underlying CEFs. The $680m PowerShares CEF Income Composite Portfolio (NYSE Arca: PCEF) charges a total expense ratio of 2.02%.

Amplify ETFs has over $295 million in assets across its ETF range (as of 22 August 2017).