Understanding the GraniteShares YieldBoost AMD ETF (AMYY)

The GraniteShares YieldBoost AMD ETF (AMYY) is an option-income ETF designed to generate high levels of cash distributions. While it offers a very high distribution yield, it has experienced a significant decline in its share price over the last year.

What the Numbers Show

The current price of AMYY is $13.68. When looking at performance, there is a big difference between the share price and the total return:

• Price Return: This measures only the change in the share price. The one-year price return is -45.60%, and the year-to-date (YTD) price return is -39.25%.

• Total Return: This includes both the share price change and the distributions paid out. The one-year total return is 30.09%, and the YTD total return is 15.75%.

An estimated price from roughly one year ago was $25.15. This shows that while the share price fell, the distributions were large enough to result in a positive total return for that period.

Income and Distribution Explanation

AMYY is designed for high income. It has a distribution yield of approximately 117.53%. Over the last 12 months, it has made 52 payouts, which is a frequent, weekly-like schedule. Most of these payments occurred on Fridays.

It is important for beginners to know that a high distribution yield alone can be misleading. A fund can pay out a lot of cash even while its share price is falling.

Price and NAV Erosion Explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the data shows severe price erosion. AMYY has a severe erosion-risk flag and an erosion score of 10, with a severity label of "severe." This means the split-adjusted price trend and the erosion score triggered a warning about the decline in the fund's share price.

Pros

• High Cash Flow: The ETF provides very frequent distributions (weekly-like).

• Positive Total Return: Despite the falling share price, the total return over the last year was positive.

Cons

• Significant Price Decline: The share price has dropped sharply over the last year and so far this year.

• High Erosion Risk: The fund has a severe erosion-risk flag.

• Low Income Grade: It has an income rating grade of "F" and a score of 37.

Beginner Takeaway

AMYY is a high-income tool that uses an option strategy to pay out cash frequently. While the total return has been positive, the share price has dropped significantly. This highlights the risk that high distributions do not always protect the original value of the shares.