Amplify TLT U.S. Treasury 12% Option Income ETF (TLTP) 4th Quarter 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 convenient single ticker access to a weekly covered call strategy offering opportunities for a higher level of income and capital appreciation on the shares not covered by calls.

The fourth quarter of 2025 saw a continued "bull-steepening" trend in the U.S. Treasury yield curve. While the Federal Reserve’s cumulative 0.5% rate cuts in November and December successfully anchored the short end of the curve, long-term yields remained highly sensitive to shifting macro narratives. The 30-year U.S. Treasury yield faced periodic upward pressure as markets began to price in evolving fiscal expectations and the potential for new trade policies, creating a challenging yet opportunistic environment for the Fund's covered-call strategy.

Throughout this period, the Amplify TLT U.S. Treasury 12% Option Income ETF (TLTP) demonstrated the resilience and efficacy of its rule-based covered-call strategy. By writing weekly calls on long-term Treasury exposures, the Fund effectively monetized the uncertainty premium present in the bond market. As of December 31, 2025, TLTP reported a distribution rate of 12.16%, slightly exceeding its annualized 12% income objective. The premiums collected from the strategy provided a crucial buffer against the price volatility of the underlying Treasury bonds, allowing the Fund to deliver high levels of current income despite market fluctuations. 

As we look toward 2026, we expect long-term Treasury yields to remain at the center of market attention. Potential catalysts, including the Supreme Court's ruling on reciprocal tariffs and the anticipated transition in Federal Reserve leadership, are likely to keep interest rate volatility elevated. While a lower-rate environment generally supports bond prices, ongoing fiscal concerns and policy shifts suggest that the path for long-term yields will remain uneven. In this landscape, we believe TLTP is strategically positioned to capture elevated option premiums, allowing the Fund to maintain its target income profile and reinforcing its value as a high-income solution in a volatile market.

Distributed Rate/Yield as of 12/31/2025
Distribution Rate*: 12.16%
30-Day SEC Yield**: 4.17%
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 sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, visit 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 12/31/2025 included an estimated return of capital of 42%. 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.