Amplify Samsung SOFR ETF (SOFR) 1st Quarter Commentary 2025
As of March 31, 2025, the Amplify Samsung SOFR ETF delivered a NAV return of 1.05% for the first quarter, reflecting steady income generation supported by stable short-term interest rates and continued investor demand for cash-equivalent investments amid a volatile macroeconomic environment.
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During the first quarter of 2025, the Federal Reserve maintained its benchmark interest rate unchanged. As a result, the SOFR (Secured Overnight Financing Rate) averaged 4.33% during the same period. The Federal Reserve, in its recent FOMC meeting, indicated through its dot plot that it anticipates two rate cuts during 2025, and the SOFR rate is also expected to decline accordingly.
At the end of March, the SOFR rate rose to as high as 4.41%, but this was attributed to quarter-end effects, and liquidity in the short-term financial markets is still considered to be favorable. Recently, with long-term inflation announced higher than expected, there were forecasts that the Federal Reserve's rate cut pace would be slower than anticipated. However, President Trump's announcement of stronger-than-expected tariffs has raised concerns about global and U.S. economic growth. Therefore, it is projected that the Federal Reserve will give more consideration to the risk of U.S. economic recession rather than inflation when making future policy decisions.
As a result, there is a possibility that the Federal Reserve may cut its benchmark interest rate sooner than anticipated. However, most market participants expect the Fed to delay its first rate cut of 2025 until the end of the second quarter, suggesting the overnight repo rate will remain at current levels for another quarter. Given the heightened financial market volatility stemming from President Trump's tariff policies, the SOFR ETF remains a compelling core allocation for investors seeking income with limited interest rate risk.
This material is preceeded or accompanied by a prospectus.
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 their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end please visit AmplifyETFs.com/SOFR. Brokerage commissions will reduce returns. A fund’s NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The closing price or market price is the most recent price at which the fund was traded.
Investing involves risk, including the possible loss of principal. You could lose money by investing in the Fund. There can be no assurance that the Fund’s investment objectives will be achieved. The Fund is new with limited history to evaluate. There is no assurance that SOFR, or rates derived from SOFR, will perform in the same or similar way as other more established rates would have performed at any time. The Fund’s use of financial instruments involving counterparties, including swap arrangements, involves risks that are different from those associated with ordinary portfolio securities transactions. The Fund expects to invest principally in repos (Repurchase Agreements). If the seller fails to repurchase the security and the market value of the security declines, the Fund may lose money.
There is risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. The Fund may hold certain investments that may trade over-the-counter, trade in limited volume, or lack an active trading market. The Fund is subject to management risk because it is an actively managed portfolio. The Fund currently has fewer assets than larger funds, and like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time. Because the Fund is non-diversified, it can invest a greater portion of its assets in securities of individual issuers so that changes in the market value could cause greater fluctuations in Share price than would occur in a diversified fund.
Amplify Investments LLC is the Investment Adviser to the Fund, and Samsung Asset Management (New York), Inc. 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.