Amplify TLT U.S. Treasury 12% Option Income ETF (TLTP) 2Q Quarterly Commentary 2025
The Amplify TLT U.S. Treasury 12% Option Income ETF (TLTP) seeks investment results that generally correspond to the performance (before fees and expenses) of the Bloomberg U.S. Treasury 20+ Year 12% Premium Covered Call 2.0 Index. TLTP provides access to a weekly covered call strategy that offers opportunities for a higher level of income.
The second quarter of 2025 was characterized by persistent volatility in long-term U.S. Treasury yields, driven by ongoing trade policy uncertainty and evolving Federal Reserve guidance. The 30-year Treasury yield fluctuated between a low of approximately 4.39% and a high near 5.09%, representing a range of about 70 to 80 basis points (BPs)1 over the quarter, well above the average range of ~55 BPs seen over the last decade.2
This volatility was largely driven by the Trump administration’s tariff policies, which continued to fuel inflationary pressure. At the same time, the Federal Reserve maintained a tight monetary stance in response to the still-elevated inflation.
In these dynamic market conditions, the Amplify TLT U.S. Treasury 12% Option Income ETF (TLTP) demonstrated its ability to deliver on its income objective. TLTP ETF maintained its targeted distribution rate by effectively harnessing options market dynamics to generate premium income. While the broader bond market experienced notable fluctuations, TLTP’s weekly covered call strategy saw portfolio coverage – the percent of the portfolio with calls sold against it – consistently below 50%. The strategy offers investors total return through consistent premium income from covered calls and upside potential from uncovered shares.
As of June 30th, TLTP maintained a distribution rate of 12.02%, in line with its annualized target of 12% in option premium income.
Distributed Rate/Yield as of 6/30/2025
Distribution Rate*: 12.02%
30-Day SEC Yield**: 4.30%
Distribution Frequency: Monthly
Prospectus | View Standardized Performance
Fund inception date: 10/28/2024. TLTP’s total expense ratio is 0.38%. The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please call 855-267-3837 or visit www.amplifyetfs.com/TLTP. There is no guarantee that distributions will be made. * Distribution Rate is the normalized current distribution (annualized) over NAV per share. In addition to net interest income, distribution on 6/30/2025 included an estimated return of capital of 66%. See Form 19a-1. ** 30-Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among bond funds. It is based on the most recent month end. This figure reflects the income earned from dividends – excluding option income – during the period after deducting the Fund’s expenses for the period.
The anticipation of higher volatility in US long-term treasury rates creates a supportive environment for the TLTP fund's distribution objectives. The fund's option selling strategy is expected to benefit from increased premium income opportunities, positioning it favorably to achieve the distribution targets.
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 Bloomberg U.S. Treasury 20+ Year 12% Premium Covered Call 2.0 Index is designed to provide a targeted annualized option premium income of 12% through writing weekly covered call options.
2Ycharts
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. The Fund will also utilize FLEX Options and subject to the risk that the OCC will be unable or unwilling to perform its obligations under the FLEX Options contracts. The Fund currently expects to make distributions on a regular basis, a portion of which may be considered return of capital.
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.