Amplify BlackSwan ETF Offers 2.86% Yield, 90% Treasuries Protection
Amplify BlackSwan Growth & Treasury Core ETF allocates 90% of assets to U.S. Treasurys and 10% to in-the-money S&P 500 call options, aiming to combine downside protection with market upside. It yields 2.86% and delivered just over 10% total return last year with a 0.49% expense ratio.
1. Portfolio Composition and Strategy
Amplify BlackSwan Growth & Treasury Core ETF maintains a 90% allocation to U.S. Treasury securities and devotes the remaining 10% to in-the-money S&P 500 call options. This structure is designed to cap potential losses in a market downturn while preserving upside exposure if equities rally.
2. Performance and Yield
Over the past 12 months, the ETF has generated just over 10% total return, slightly trailing the S&P 500’s 13% gain for the same period. It also distributes a 2.86% dividend yield, offering investors a blend of income and growth potential.
3. Expense Ratio and Suitability
The fund charges a 0.49% expense ratio, reflecting the cost of its hybrid strategy of bonds and options. Its defensive focus and income features make it a candidate for portfolios seeking protection against market crashes with some participation in equity gains.