YYY - YYY: Consistent High Income ETF But One To Avoid

2024-05-26 14:58:06 ET

Summary

• Amplify High Income ETF (YYY) is designed to capture high yields in the closed-end funds space in a conservative manner.
• The ETF focuses on high yields, larger discounts to NAV, and greater liquidity in its portfolio composition.
• YYY has had some reasonable performance over the last 12 months, but its longer-term numbers indicate structural weaknesses and a weak outlook for bond CEFs.

YYY Overview

The Amplify High Income ETF ( NYSEARCA:YYY ) is an ETF designed to capture high yields offered within the closed end funds - CEFs space, in a conservative manner. The lower risk approach is implemented via maintaining a very high exposure over bond CEFs versus equities. It also consists of a highly diversified portfolio with no leverage at the top level.

The CEFs making up the portfolio are determined by a quantitative approach based off the ISE High Income Index . This index “ is designed to measure the returns and income of the top 45 U.S.-listed Closed-End Funds .”...

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