Recently, Amplify ETFs announced the conversion of the YieldShares High Income ETF (NYSE Arca: YYY) (referred to as “the Fund”) to the Amplify ETF Trust from the Exchange Traded Concepts Trust. Since 2016, Amplify ETFs has been servicing, marketing, and supporting the product as a Sub-Adviser; Amplify is now Adviser to the Fund.
Moreover, the Fund’s new name is the Amplify High Income ETF. However, the Fund maintains the same ticker (YYY), investment objective, selection criteria, management fee, and underlying index.
“Given the success of YYY, we are thrilled to have the Fund formally become a part of the Amplify ETF Trust,” explains Christian Magoon, CEO, and founder of Amplify ETFs, and founder of YieldShares LLC. “As an income-oriented product, YYY is a great complement to our thematic ETF lineup. 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.”
To further expand on this news, ETF Trends was able to reach out and learn some additional information about the conversion from Magoon. Explaining what was behind the conversion, Magoon stated how the continued growth of the Amplify ETF platform meant it was time to bring YYY onto the Amplify ETF Trust to better service, market, and distribute the ETF.
“Being able to seamlessly market YYY as an Amplify ETF will allow the fund to be in front of many more investors and financial advisors on a daily basis,” Magoon added, in regards to the future growth of the ETF. “For example, previously, YYY had its own website, entirely separate from the Amplify website, making it considerably less visible.”
The Right Timing For This Strategy
In terms of the timeliness of this strategy, Magoon explained how low to negative interest rates around the world have led to investors searching for high current income options.
“YYY takes advantage of the closed-end fund (CEF) structure – funds that often trade at a discount to net asset value and that may employ leverage in a low-interest rate environment to increase income potential for shareholders – to produce high current monthly income for investors.”
Also, due to YYY’s contrarian approach to buying CEFs with high current discounts to net asset value, the fund has historically delivered a basket of CEFs diversified by asset class, manager, and investment style.
About Amplify ETFs
Amplify ETFs, sponsored by Amplify Investments, has $750 million in assets as of 9/30/2019. Amplify believes the ETF structure empowers investors through efficiency, transparency, and flexibility. Since its first ETF launch in 2016, Amplify seeks to build ETFs powered by investment strategies from leading index providers and asset managers within unique market segments.