YYY: Stretching For An Amplified Yield Of 12.8%

2025-05-12 03:52:32 ET

Summary

• The Amplify High Income ETF offers a high yield of 12.8%.
• The YYY ETF employs a "fund-of-funds" strategy, investing in 60 closed-end funds, with a 60/40 allocation in stocks & bonds, and significant exposure to issuers abrdn and BlackRock.
• Despite its attractive yield, the YYY ETF's long-term total returns are mediocre, significantly under-performing broader market indexes and other high-yield alternatives.
• Given the high expense fee and poor performance, I recommend selling YYY and considering a dividend growth stock like Chevron for better long-term total returns.

After a big "Liberation Day" sell-off (see chart below), the Amplify High Income ETF ( YYY ) has recovered most all of its prior value but is still currently yielding 12.8%. That could entice income-hungry investors to allocate some capital to the fund. That said, whenever I see an outsized yield investment - and, yes, I certainly do consider 12.8% to be an outsized yield at this time - my investment warning radar goes on high-alert. That being the case, this article will take a close look at the YYY ETF to see if it might (or might not) be a good investment for income oriented investors....

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