What this ETF is trying to do

The Amplify Mobile Payments ETF (IPAY) is designed to invest in companies involved in the mobile payments industry. This includes businesses that handle digital transactions and financial technology. Based on its top holdings, the fund focuses on major payment processors and financial services companies like Visa, Mastercard, and American Express.

What the numbers show

The data shows different results depending on how far back you look.

• Year-to-Date (YTD): The price return is approximately -6.45%. Since total return data was also supplied as -6.45%, the overall performance for this year matches the share-price movement.

• One Year: The one-year price return is approximately -16.62%. The one-year total return, which includes distributions, was approximately -15.96%.

• Three Years: Over a three-year period, the fund has seen growth. The three-year price return is approximately 26.31%, and the three-year total return is approximately 28.28%.

• Five Years: The five-year total return is approximately -27.70%.

To give you an idea of recent price changes, the current price is $48.68. The estimated price from roughly one year ago was approximately $58.38.

Income and distribution explanation

IPAY provides a distribution yield of approximately 0.84%. This represents the cash distributions relative to the ETF price. The trailing distributions are approximately $0.41.

It is important to note that the distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. Because the yield is relatively low, it has an income rating grade of "F."

NAV erosion explanation

The fund has an erosion-risk score of 55, which is labeled as "moderate price erosion." This means the share price has shown some signs of declining.

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. While the market price has fluctuated, we cannot use this information to prove whether the actual Net Asset Value (NAV) has declined.

Pros

• Long-term growth: The three-year total return shows a positive gain of approximately 28.28%.

• Industry focus: The fund holds major players in the global payment space, such as Visa and Mastercard.

Cons

• Recent price decline: The one-year price return has been negative, dropping by approximately 16.62%.

• Low income frequency: Distributions are irregular and not frequent.

• Moderate erosion risk: The fund shows a moderate level of price erosion.

Beginner takeaway

When looking at IPAY, it is important to distinguish between price return (how much the share price moves) and total return (which includes distributions). While the fund has shown strong growth over three years, it has faced a share-price decline over the last year. Additionally, while the fund pays distributions, the yield is low and the payments do not happen on a regular schedule. Always remember that a high distribution yield does not guarantee that an investment will keep its value.