Amplify Natural Resources Dividend Income ETF (NDIV) 1Q Quarterly Commentary 2025
Distribution Rate*: 5.34%
30-Day SEC Yield**: 7.57%
Distribution Frequency: Monthly
Natural resource stocks had a strong quarter, with midstream energy names taking the lead as adjacent AI infrastructure investment plays. Currently, around 43% of U.S. electricity1 is generated by natural gas. However, that number could increase to 50%, as per comments by the energy secretary, as the country undergoes a massive overhaul of energy markets and of our economy in the name of electrification.
AI data centers are certainly another catalyst. That’s because AI’s contribution to electricity demand is expected to grow from 4% in 2024 to 11% by 2030. However, growing demand for natural gas is also being driven by the implementation of electrification at a high level over the coming decade. Energy infrastructure companies, which transport natural gas, like many of the high-yielding companies in the NDIV Index, are well-positioned to support this growing demand, and may be a compelling way to play the natural gas story.
Another positive catalyst in manufacturing. Looking at indicators like the manufacturing PMI index, investors can see how the manufacturing sector in the United States has pushed a two-consecutive-month expansion, building up potential momentum in energy and materials. In addition, Asia’s powerhouse (China) is also pushing out more PMI expansion there. So cheaper energy and materials prices could be a boon to spur demand and manufacturing growth, especially once tariff headwinds abate. And lower energy and materials prices mean less money spent on explorations and development and more money flowing back to shareholders in the form of dividends.
Among NDIV’s top performers in Q1 were Genesis Energy (+52%), B2Gold (+18%), and Plains All American (+19).
Genesis Energy provides an integrated suite of midstream services in the crude oil and natural gas industries in the United States. The stock has rallied on the strength of the liquified natural gas (LNG) segment. The company also announced that it has divested its soda ash2 manufacturing and related operations to an indirect unit of WE Soda for $1.43 billion, helping it to focus on the midstream energy sector, reduce debt, and buy back shares with the company extending its common equity buyback plan till the end of 2026. Canadian gold miner B2Gold rallied on record high gold prices and news the company is proceeding with its Goose Project in northern Canada while exploring growth opportunities in Mali, Colombia, and Finland. Production growth is expected in 2025, with the Goose Project launching in Q2, targeting over 300,000 ounces annually. Plains All American is a master limited partnership engaged in pipeline transport, marketing, and storage of liquefied petroleum gas and petroleum in the United States and Canada. Analysts are upgrading revisions on the stock due to robust natural gas liquids (NGL) segment performance and a positive impact from its Ironwood acquisition.
Detractors from performance for the period were Tronox (-30%), Chemours (-27%), and Noble Corp (-23%)
Tronox Holdings PLC, a global mining and inorganic chemicals company, has seen its stock tumble to new lows. The company has paid dividends for 14 years and the 10% yield is considered secure. The company missed earnings and revenue estimates. Chemical company Chemours is also facing ongoing demand weakness amid tariff headwinds. The company lowered guidance, but again, the dividend is secure. Offshore oil and gas driller Noble is another victim of tariff headwinds. Noble’s CFO highlighted a $5.8 billion backlog and $525 million in recent awards, but lower prices are not supportive of drilling operations.
Visit the NDIV fund page for more information, including fact sheets, index methodology and regulatory documents.
All data as of 3/31/25. Subject to change at any time. Fund holdings should not be considered recommendations to buy or sell any security. View Current Complete Holdings
This material is preceded or accompanied by a prospectus.
Index Definitions:
An index is unmanaged and it’s not possible to invest directly in an index. The EQM Natural Resources Dividend Income Index (NDIVITR) is a gross total return index that seeks to provide investment exposure to dividend-paying equity securities of global companies operating primarily in the natural resource and commodity-related industries. Morningstar® Global Upstream Natural Resources Index measures the performance of stocks issued by companies that have significant business operations in the ownership, management and/or production of natural resources in energy, agriculture, precious or industrial metals, timber and water resources sectors as defined by Morningstar’s industry classification standards.
1https://www.etftrends.com/energy-infrastructure-channel/energy-infrastructure-less-obvious-ai-beneficiary-consider/
2https://www.insidermonkey.com/blog/why-genesis-energy-l-p-gel-is-gaining-this-week-1474205/
Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For most recent month-end performance, visit AmplifyETFs.com/NDIV. Brokerage commissions will reduce returns. NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The closing price is the last price at which the fund traded.
You could lose money by investing in the Fund. There can be no assurance that the Fund's investment objectives will be achieved. Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. Diversification does not assure a profit or protect against a loss in a declining market. The Fund is subject to the risks associated with companies in the natural resources and commodities-related industries, energy and material sectors which can cause volatility and affect its value. These industries can be significantly affected by rapid changes in supply and demand, changes in interest rates, government policies and regulations, environmental concerns, worldwide politics, and economic conditions. The Fund will invest in American Depositary Receipts which may be subject to certain risks associated with direct investments in the securities of non-U.S. companies, such as currency, political, economic and market risks because their values depend on the performance of the non-dollar denominated underlying non-U.S. securities. Dividend-Paying Companies are not obligated to pay or continue to pay dividends on their securities. Therefore, there is a possibility that a company could reduce or eliminate the payment of dividends in the future, which could negatively affect the Fund's performance.
Amplify Investments LLC serves as the Investment Adviser to the Fund, and Tidal Investments, LLC serves as the investment sub-adviser. Amplify ETFs are distributed by Foreside Fund Services, LLC.
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in Amplify Funds statutory and summary prospectus, which may be obtained by calling 855-267-3837 or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Amplify ETFs are distributed by Foreside Fund Services, LLC.