Discover the YieldSmartTM ETFs Advantage
YieldSmartTM ETFs are built for today's income needs and tomorrow's growth goals. In this episode, Christian Magoon explains the strategy behind Amplify YieldSmartTM covered call ETFs, and how they seek to provide:
Check out YieldSmart ETFs for Smart Options, Smarter Outcomes.TM Watch now to learn more!
IDVO: Amplify CWP International Enhanced Dividend Income ETF
Welcome back to ETF Watch. I'm Christian Magoon with Amplify ETFs and it's the summer of crypto.
Hi, welcome to this episode of Amplify's ETF Watch, where we focus in on our new concept behind our covered call ETFs, and that's our yield smart ETFs.
00:12
Smarter options, smarter outcomes.
00:15
So stick around to learn the key concepts that make our approach to covered call ETFs very unique. Let's take a look at what we believe to be the three main benefits of YieldSmart ETFs.
00:29
Number one, we believe that investors would like consistent and attractive income distributions. We seek to balance that in the YieldSmart ETF lineup, from treasuries to U.S.
equities to even Bitcoin.
You'll see distribution schedules that are often monthly and offer attractive income distribution levels, somewhere between 4 and as much as 60% in some cases.
00:53
Secondly, YieldSmart ETFs are total return focused.
Yes, they have attractive distributions, but they also continue to keep investors in the game when it comes to capital appreciation. YieldSmart ETFs set themselves apart from other covered call ETFs that may just look at high distribution rates and ignore capital appreciation.
YieldSmart ETFs total return focus, we think, is going to benefit investors for the long term.
01:20
Third, yield smart ETFs seek tax efficiencies when it comes to investment income.
Utilizing a covered call strategy in an ETF may generate tax-efficient income largely due to the treatment of options premiums and other strategic considerations unique to the ETF structure.
In fact, in some cases, the use of covered calls may help defer taxes, as the premiums received are often treated as return of capital, which does not immediately incur taxes and instead reduces the cost basis of the underlying holdings.
01:52
In short, we believe the key advantage of YieldSmart ETFs is they balance income with growth potential, which we think over the long term is a winning recipe for income investors.
This is a bit unique in the income space, as many other alternatives don't take this approach.
02:10
We believe our yield smart advantage, which is really partial coverage of the portfolio from an option standpoint and or using out of the money options, puts us in the sweet spot relative to other covered call ETFs that may have 100% coverage or simply be long only.
When you're in the sweet spot, you're able to balance income today with growth for tomorrow.
02:33
To sum it all up, YieldSmart ETFs are built for today's income needs and tomorrow's growth goals. They offer attractive monthly income potential for investors, and by utilizing A thoughtful covered call strategy inside an ETF, it may generate tax-efficient income for investors.
To discover more about YieldSmart ETFs, visit AmplifyETFs.com/YieldSmart ETFs.
OTM call options seek to balance growth potential with income generation. ATM call options prioritize income from option premiums with potential growth if the underlying isn’t called away. ITM call options prioritize income as the underlying is already above the strike price.
Covered call risk is the risk that the Fund will forgo, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline.
There is no guarantee distributions will be made. The Funds may not achieve their desired outcomes.
Distributions classified as return of capital, which may include option premiums, dividends, capital gains, and interest, reduce an investor’s cost basis in Fund shares. This can result in higher future taxes upon sale, even if shares are sold at a loss relative to the original investment.
This information does not constitute, and should not be considered a substitute for any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
Amplify ETFs are distributed by Foreside Fund Services, LLC.