Amplify ETFs Highlights 12% Option Income Strategy, Closes 2 Funds

Amplify ETFs is refining its portfolio by rebranding one of its funds while phasing out two others. To highlight its 12% option income strategy, Amplify ETFs has renamed its Amplify Bloomberg U.S. Treasury Target High Income ETF to the Amplify Bloomberg U.S. Treasury 12% Premium Income ETF TLTP, effective Feb. 19.

Moreover, on Feb. 12, Amplify announced that it is liquidating the Amplify BlackSwan Tech & Treasury ETF QSWN and Amplify Thematic All-Stars ETF MVPS.

Also Read: Cannabis ETF Changes: Amplify ETFs Revamp Funds To Boost US Exposure

New Name, Same Strategy

The rebranding aims to enhance investor clarity regarding the fund's primary objective of delivering 12% annualized option premium income with monthly distributions. The ETF employs a weekly U.S. Treasury covered call option strategy, targeting higher income levels by combining option premiums with U.S. Treasury bond income. Notably, there are no changes to its investment strategy, structure, or management.

TLTP continues tracking the Bloomberg U.S. Treasury 20+ Year 12% Premium Covered Call 2.0 Index, ensuring its 12% option premium income target alongside Treasury bond returns.

Amplify has over $10.6 billion in assets under management as of Jan. 31.

Shutting Down QSWN and MVPS

Following recommendations from Amplify Investments LLC, the board of trustees of the Amplify ETF Trust unanimously decided that closing these funds was in the best interest of shareholders.

Key dates for investors:

• February 26, 2025: Final date for creation or redemption orders.
• March 5, 2025: Last trading day; funds will cease trading after market close.
• March 10, 2025: Expected final distribution to shareholders.

Investors may sell shares before March 5, though brokerage fees may apply.

Amplify's Focus

These adjustments demonstrate Amplify ETFs' commitment to aligning its offerings with investor demand. While TLTP's rebranding aims to bring its robust income strategy into the limelight, the closure of QSWN and MVPS signals a shift toward a more streamlined ETF portfolio.

Read Next:

• New ETF Offers Downside Protection With Options-Based Strategy

Photo: Shutterstock