VIRTUAL EVENTS
Modern ETF Solutions for the Next Era of Energy
Amid energy transitions and shifting economic realities, how can portfolios be positioned for today’s income needs and tomorrow’s goals?
The growing demands of AI, supply chain constraints, and power needs have created a unique environment for critical metals, battery technology, and economically relevant industries like oil, gas, and chemicals.
Join the experts at Amplify ETFs as they discuss two strategies that can help navigate the evolving global economy.
SUMMARY
Topics covered will include:
- An overview of the current market environment and the demands that could drive growth for critical metals, battery tech, and energy
- A deep dive on two ETFs: Amplify Lithium & Battery Technology ETF (BATT) and Amplify Energy & Natural Resources Covered Call ETF (NDIV)
- An explanation of Amplify's YieldSmart™ approach—total-return-focused, option-income ETFs
This program is accepted for one hour of continuing education (CE) credit by the Certified Financial Planner Board of Standards for the CFP® designation, The Investment and Wealth Institute for CIMA®, CPWA®, RMA®, and CIMC designations, The ETF Institute for the CETF® designation and The American College of Financial Services.
CFA Institute members are encouraged to self-document their continuing professional development activities in their online CE tracker.
SPEAKERS
Christian Magoon
Founder and CEOAmplify ETFs
Jane Edmondson
Head of Index Product StrategyTMX VettaFi
Todd Rosenbluth
Head of ResearchVettaFi
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Important Disclosures
BATT: The Fund is not actively managed. The Fund invests in securities included in its Index regardless of their investment merit. Narrowly focused investments typically exhibit higher volatility. A portfolio concentrated in a single industry, such as lithium battery technology, makes it vulnerable to factors affecting the companies.
The Fund may face more risks than if it were diversified broadly over numerous industries or sectors. The Fund has become more susceptible to potential operational risks through breaches in cybersecurity. The Fund invests in securities that are issued by and/or have exposure to, companies primarily involved in the metals and mining industry. Investments in metals and mining companies may be speculative and subject to greater price volatility than investments in other types of companies. The exploration and development of metals involves significant financial risks over a significant period of time, which even a combination of careful evaluation, experience and knowledge may not eliminate. Rare earth metals have more specialized uses and are often more difficult to extract. The increased demand for these metals has strained supply, which could adversely affect the companies in the Fund’s portfolio. Some of the companies in which the Fund will invest are engaged in other lines of business unrelated to the mining, refining and/or manufacturing of metals and these lines of business could adversely affect their operating results.
The Fund’s assets are concentrated in the materials sector, which means the Fund will be more affected by the performance of the materials sector than a fund that is more diversified. The Fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time. The Fund will invest in the securities of non-U.S. companies. Investments in emerging market issuers are subject to a greater risk of loss than investments in issuers located or operating in more developed markets. The mining, refining and/or manufacturing of metals may be significantly affected by regulatory action and changes in governments. Small and/or mid-capitalization companies may be more vulnerable to adverse general market or economic developments. Electric vehicle technology is relatively new and is subject to risks associated with a developing industry.
The EQM Lithium & Battery Technology Index (BATTIDX) seeks to provide exposure to global companies associated the development and production of lithium battery technology and/or battery storage solutions; the exploration, production, development, processing, and/or recycling of the materials and metals used in lithium battery chemistries such as Lithium, Cobalt, Nickel, Manganese, Vanadium and/or Graphite; and/or the development and production of electric vehicles.
Amplify Investments LLC is the Investment Adviser to the Fund, and Tidal Investments, LLC serves as the Investment Sub-Adviser.
NDIV: Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. Diversification does not assure a profit or protect against a loss in a declining market.
The Fund is subject to the risks associated with companies in the natural resources and commodities-related industries, energy and materials sectors which can cause volatility and affect its value. These industries can be significantly affected by rapid changes in supply and demand, changes in interest rates, government policies and regulations, environmental concerns, worldwide politics and economic conditions. The Fund will invest in American Depositary Receipts which may be subject to certain risks associated with direct investments in the securities of non-U.S. companies, such as currency, political, economic and market risks because their values depend on the performance of the non-dollar denominated underlying non-U.S. securities.
Dividend-Paying Companies are not obligated to pay or continue to pay dividends on their securities. Therefore, there is a possibility that a company could reduce or eliminate the payment of dividends in the future, which could negatively affect the Fund’s performance.
The Fund employs a “passive management” or indexing investment approach that seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Differences in timing of trades and valuation as well as fees and expenses, may cause the fund to not exactly replicate the index known as tracking error. Covered call strategies may limit upside potential while still exposing the Fund to downside risk. Covered puts can incur substantial losses if the underlying asset rises sharply, with premiums offering limited protection. Monthly distributions may include return of capital, which lowers the investor’s cost basis and could result in higher loss.
Amplify Investments LLC serves as the Investment Adviser to the Fund, and Tidal Investments, LLC serves as the investment sub-adviser.
YieldSmart: Covered call risk is the risk that the Fund will forgo, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline.
The Funds may not achieve their desired outcomes.
Distributions classified as return of capital, which may include option premiums, dividends, capital gains, and interest, reduce an investor’s cost basis in Fund shares. This can result in higher future taxes upon sale, even if shares are sold at a loss relative to the original investment.
This information does not constitute, and should not be considered a substitute for any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
Carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at AmplifyETFs.com. Read the prospectus carefully before investing. Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Amplify ETFs are distributed by Foreside Fund Services, LLC.
VettaFi is the index provider for NDIV and BATT, for which it receives an index licensing fee. However, NDIV and BATT are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of NDIV and BATT.