ETF Education Report: Amplify Samsung SOFR ETF (SOFR)

What this ETF is trying to do

The Amplify Samsung SOFR ETF (ticker: SOFR) is an exchange-traded fund listed on the NYSE. While the specific investment strategy is not detailed in the provided data, it is categorized as a standard ETF and is not a leveraged, inverse, or crypto-related fund.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only the change in the share price. For SOFR, the year-to-date (YTD) price return is approximately -3.69%, and the one-year price return is approximately -12.66%.

• Total Return: This includes both the share price changes and the money paid out to investors through distributions. The YTD total return is approximately 2.72%, and the one-year total return is approximately 3.65%.

To see how the price changed, we can look at an estimated price from roughly one year ago, which was $100.28, compared to the current price of $100.15.

Income and distribution explanation

Some investors look for ETFs that pay out cash regularly. This is called the "distribution yield." For SOFR, the distribution yield is approximately 3.72%. This ETF usually pays out distributions monthly, with 12 payments recorded over the last year. Most of these payments have occurred on Thursdays.

It is important to remember that a high distribution yield is not the same thing as total return. Total return tells you the full picture of how much value was gained or lost, including those cash payments.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases over time. Investors often care about this because they want to keep their original investment (the principal) stable.

StockValueFinder uses an "erosion-risk score" to measure this risk. SOFR 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 provides a regular monthly distribution.

• The total return figures (which include distributions) are positive for both the year-to-date and one-year periods, even though the share price itself has declined.

• The erosion-risk score suggests a stable trend.

Cons

• The share price has experienced a decline over the last year (a one-year price return of approximately -12.66%).

• The YTD price return is also negative at approximately -3.69%.

Beginner takeaway

When studying this ETF, notice that the share price has gone down, but the total return is positive. This happens because the cash distributions help make up for the drop in share price. Always look at both the price return and the total return to understand how an ETF is performing.