HCOW: Amplify Cash Flow High Income ETF
ETF Education Report: Amplify Cash Flow High Income ETF (HCOW)
What this ETF is trying to do
The Amplify Cash Flow High Income ETF (ticker: HCOW) is an exchange-traded fund listed on the NASDAQ. Based on its name and holdings, it focuses on generating income. It holds a variety of different companies, including names like Cheniere Energy Inc, T-Mobile US Inc, and FedEx Corp.
What the numbers show
When looking at an ETF, it is important to understand the difference between "price return" and "total return."
• Price Return only tracks how much the share price itself has changed.
• Total Return includes both the change in share price and any cash distributions (dividends) paid out to investors.
For HCOW, the numbers show:
• Year-to-Date (YTD): The price return is approximately 0.29%, while the total return is approximately 9.37%.
• One Year: The price return was approximately 1.50%, while the total return was approximately 14.07%.
• Three Years: The price return was approximately -0.19%, while the total return was approximately 34.45%.
To visualize the price change, the estimated price from roughly one year ago was $23.91. The current price is $24.27.
Income and distribution explanation
This ETF is designed to provide regular cash to investors. The distribution yield is approximately 11.63%. This number describes the cash distributions relative to the ETF's price. It is important to remember that a high yield alone can be misleading; it does not guarantee the investment will grow in value.
HCOW usually pays out distributions monthly, with 12 payments made over the last year. The trailing distributions were $2.82 per share.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Investors often care about this because they want their original investment (the principal) to stay stable while they collect income.
StockValueFinder uses an erosion-risk score to measure this risk. HCOW has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• The ETF has a high distribution yield of approximately 11.63%.
• The total return over the last three years has been approximately 34.45%.
• The erosion-risk score suggests the price has been relatively stable.
Cons
• The three-year price return is slightly negative at approximately -0.19%.
• High distribution yields can sometimes be associated with different types of investment risks.
Beginner takeaway
HCOW focuses on providing regular cash payments to investors. While the share price itself has stayed relatively flat over the last three years, the total return (which includes the cash payments) has been much higher. Always remember to look at both price returns and total returns to see the full picture of how an ETF is performing.
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*Note: This report is for educational purposes only and does not constitute financial advice. It does not recommend buying, selling, or holding this ETF.*
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | AMPLIFY CASH FLOW DIVIDEND LEADERS ETF | COWS | 4.29% |
| 2 | n/a | DELL | 3.35% |
| 3 | CHENIERE ENERGY INC | LNG | 3.25% |
| 4 | T-MOBILE US INC | TMUS | 3.15% |
| 5 | ENSIGN GROUP INC | ENSG | 3.12% |
| 6 | FEDEX CORP | FDX | 3.12% |
| 7 | THE KROGER CO | KR | 3.05% |
| 8 | MCKESSON CORP | MCK | 2.96% |
| 9 | EQT CORP | EQT | 2.95% |
| 10 | THE TORO CO | TTC | 2.93% |