Understanding the Amplify Blockchain Technology ETF (BLOK)

The Amplify Blockchain Technology ETF (ticker: BLOK) is an exchange-traded fund designed to invest in companies involved with blockchain technology. This report explains the current data for BLOK to help you understand its price movements, income, and risks.

What this ETF is trying to do

BLOK seeks to provide exposure to the blockchain industry. Instead of buying just one company, this ETF holds a variety of different stocks. According to the top holdings provided, the fund includes companies like Robinhood Markets Inc (4.04%), Figure Technology Solutions Inc (3.56%), and Advanced Micro Devices Inc (3.54%). Because the holdings list is partial, these are only the largest companies in the fund and not all of them.

What the numbers show

When looking at an ETF, it is important to distinguish between price return (how much the share price changed) and total return (which includes both price changes and distributions).

• Year-to-Date (YTD): The YTD price return is approximately 4.69%, while the YTD total return is approximately 4.83%.

• One-Year Performance: Over the last year, the share price has declined by approximately 19.62%. The one-year total return was approximately -18.95%.

• Three-Year Performance: Over the last three years, the fund has seen significant growth. The three-year price return is approximately 196.17%, and the three-year total return is approximately 219.71%.

An estimated price from roughly one year ago was $74.10, compared to the current price of $59.56.

Income and distribution explanation

Some investors look at ETFs for regular cash payments, called distributions. BLOK has a distribution yield of approximately 0.82%. This means the cash distributed is small relative to the ETF's price.

The fund has a distribution frequency described as "irregular or less frequent," with only two payouts recorded in the last 12 months. Because the yield is relatively low, the fund received an income rating grade of "D."

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). 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, we can look at the erosion-risk score. BLOK has an erosion score of 55, which is labeled as "moderate price erosion." This indicates that the market price has shown some signs of declining over time, though it has not triggered a "severe erosion-risk flag."

Pros

• Strong Long-Term Growth: The three-year total return shows very high growth compared to the recent one-year decline.

• Diversification: The fund holds many different companies (53 total holdings) across the blockchain sector.

Cons

• Recent Price Decline: The fund has experienced a significant share-price decline over the past year.

• Low Income: The distribution yield is low, and payments are not made on a regular, frequent schedule.

Beginner takeaway

BLOK is an ETF focused on blockchain technology. While it has shown very high returns over a three-year period, it has also experienced a significant price drop in the last year. It is not primarily an income fund, as its distribution yield is low and payments are irregular. Investors should note the moderate price erosion score when researching its history.