Amplify Bloomberg U.S. Treasury 12% Premium Income ETF (TLTP) 1st Quarterly Commentary 2025
The first quarter of 2025 was characterized by significant volatility in long-term Treasury yields, primarily driven by the Trump administration's tariff policies. We observed the 30-year Treasury yield fluctuating between a high of 4.976% and a low of 3.929%, representing a spread of more than 50 basis points during this period.
This elevated volatility has created an advantageous environment for our options strategy. The higher premiums available in the market have enabled TLTP to consistently achieve our investment goal of delivering a 1% monthly dividend through our disciplined approach of writing weekly at-the-money covered call options.
As of March 31st, TLTP maintained a distribution rate of 11.92%, which aligns with our targeted 12% annualized option premium income strategy.
Distributed Rate/Yield as of 3/31/2025
Distribution Rate*: 11.92%
30-Day SEC Yield**: 4.08%
Distribution Frequency: Monthly
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 3/31/2025 included an estimated return of capital of 75%. 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.
Looking forward, we anticipate continued market volatility as the Trump administration's tariff policies take full effect. We're seeing two competing forces at work: concerns that reduced consumer spending could trigger an economic recession, alongside worries about tariff-induced inflation. These opposing factors acting on long-term Treasury yields should maintain the high-volatility environment that benefits our strategy for the foreseeable future.
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.
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.