ETF Education Report: Amplify BlackSwan Growth & Treasury Core ETF (SWAN)

What this ETF is trying to do

The Amplify BlackSwan Growth & Treasury Core ETF (ticker: SWAN) is an exchange-traded fund listed on the NYSE. Based on its top holdings, it includes assets like the INVESCO SHRT-TRM INV GOV&AGCY INSTL.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only how much the share price has changed.

• Total Return: This includes both the change in share price *and* any cash distributions (dividends) paid out to investors.

For SWAN, the numbers show:

• Year-to-Date (YTD): The price return is approximately 0.20%, while the total return is approximately 2.07%.

• One Year: The price return is approximately 69.17%, while the total return is approximately 40.57%.

• Three Years: The price return is approximately 30.20%, while the total return is approximately 42.43%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $32.31, and the current price is $32.54.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. SWAN has a distribution yield of approximately 3.27%. This means the cash distributed is about 3.27% of the ETF's price. The trailing distributions were $1.06 per share, and these are usually paid out quarterly (four times a year).

It is important to remember that a distribution yield tells you how much cash was paid out, but it is not the same thing as your total return.

NAV erosion explanation

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

StockValueFinder uses an erosion-risk score to measure this risk. SWAN has an erosion score of 94, which is labeled as "Stable / sideways." This indicates a "good" erosion severity, and there is no severe erosion-risk flag for this ETF.

Pros

• The ETF shows a positive total return across one-year and three-year periods.

• It has a "good" erosion-risk rating, suggesting the price has been relatively stable.

• It provides regular cash distributions (usually quarterly).

Cons

• The total number of holdings is very small, with only one listed holding in the provided data.

• Investors should always remember that distributions do not guarantee that the share price will stay the same.

Beginner takeaway

When studying SWAN, notice the difference between the price return and the total return. The total return is higher because it accounts for the cash distributions paid to shareholders. While the ETF provides a distribution yield, always look at the total return and the erosion-risk score to get a fuller picture of how the fund is performing.