YYY: AMPLIFY CEF HIGH INCOME ETF
ETF Education Report: AMPLIFY CEF HIGH INCOME ETF (YYY)
What this ETF is trying to do
The AMPLIFY CEF HIGH INCOME ETF (YYY) is an exchange-traded fund designed to provide income. It holds a variety of different funds, including several from companies like Guggenheim, Aberdeen, and PIMCO. Because it focuses on "high income," it aims to pay out regular cash to its investors.
What the numbers show
It is important to understand that there are two different ways to look at how this ETF has performed: price return and total return.
• Price Return: This only measures how the share price itself has moved. Over the last year, the price return was approximately -10.01%. The year-to-date (YTD) price return is approximately -7.82%.
• Total Return: This includes both the price changes and the cash distributions paid out to investors. When you include those distributions, the numbers look different. For example, the one-year total return was approximately 1.96%, and the three-year total return was approximately 35.12%.
To see the price change over a year, we can look at the estimated price from roughly one year ago, which was $11.79, compared to the current price of $10.61.
Income and distribution explanation
This ETF is known for its distributions. The distribution yield is approximately 13.57%. This means the amount of cash paid out is quite high compared to the ETF's price. The trailing distributions over the last year totaled $1.44 per share. These payments usually happen monthly, and most often occur on a Thursday.
While high yields can provide regular cash, it is important to remember that a high distribution yield does not guarantee the total return will be high.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. StockValueFinder uses an "erosion-risk score" to measure this risk. This ETF has an erosion score of 75, which is labeled as "mild price erosion." While the share price has declined, this score is a measurement of risk rather than a definitive proof of total value loss.
Top Holdings
The following are the top holdings in this ETF (note that this is a partial list):
• GUGGENHEIM STRATEGIC OPPORTUNITIES FUND (3.47%)
• ABERDEEN TOTAL DYNAMIC DIVIDEND FUND (3.43%)
• BLACKROCK ESG CAPITAL ALLOCATION TRUST (3.38%)
• TORTOISE ENERGY INFRASTRUCTURE CORP (3.23%)
• NUVEEN FLOATING RATE INCOME FUND (3.17%)
Pros
• The ETF offers a high distribution yield of approximately 13.57%.
• The three-year total return has been positive at approximately 35.12%.
Cons
• The share price has experienced declines (price return) over the last year and year-to-date.
• There is a measurement of "mild" price erosion.
Beginner takeaway
When looking at high-income ETFs, always look at the total return, not just the distribution yield. The distribution yield tells you how much cash is being paid out, but the total return tells you how much the investment actually grew (or shrank) after including those payments.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | GUGGENHEIM STRATEGIC OPPORTUNITIES FUND | GOF | 3.47% |
| 2 | ABERDEEN TOTAL DYNAMIC DIVIDEND FUND | AOD | 3.43% |
| 3 | BLACKROCK ESG CAPITAL ALLOCATION TRUST | ECAT | 3.38% |
| 4 | TORTOISE ENERGY INFRASTRUCTURE CORP | TYG | 3.23% |
| 5 | NUVEEN FLOATING RATE INCOME FUND | JFR | 3.17% |
| 6 | PIMCO HIGH INCOME FUND | PHK | 3.12% |
| 7 | ABRDN GLOBAL INFRASTRUCTURE INCOME FUND | ASGI | 2.77% |
| 8 | n/a | IGR | 2.57% |
| 9 | WESTERN ASSET DIVERSIFIED INCOME FUND | WDI | 2.55% |
| 10 | NUVEEN CREDIT STRATEGIES INCOME FUND | JQC | 2.54% |