Amplify Travel Tech ETF (AWAY)

Overview

The Amplify Travel Tech ETF (AMPL) is an actively managed Exchange Traded Fund focused on companies that are involved in the travel technology sector. This includes companies operating in online travel agencies, travel booking platforms, travel analytics, and other technology-driven travel services. The ETF aims to invest in innovative companies that are transforming how people plan, book, and experience travel.

Reputation and Reliability

Amplify Investments is known for offering thematic and actively managed ETFs, aiming to provide investors with exposure to specific growth trends and sectors. While a newer player compared to some established ETF providers, they have built a reputation for thoughtful product development in niche areas.

Management Expertise

The ETF is actively managed by Amplify Partners, LLC. Specific details on the individual portfolio managers and their extensive experience in the travel tech sector are typically available in the fund's prospectus and on Amplify's website.

Goal

To achieve capital appreciation by investing in companies that are enabling or benefiting from innovation and technological advancements in the travel industry.

Investment Approach and Strategy

Strategy: AMPL is an actively managed ETF, meaning the portfolio managers select individual securities they believe will outperform the broader market within the travel tech sector. It does not track a specific index.

Composition The ETF primarily holds stocks of companies engaged in various aspects of travel technology, including but not limited to online travel agencies (OTAs), booking platforms, reservation systems, travel software providers, and companies leveraging technology to enhance the travel experience.

Market Share: As a thematic ETF focused on a specific niche, AMPL's market share within the broader ETF landscape is relatively small. Its market share within the travel technology ETF segment is more relevant, though direct comparable data is often proprietary and fluid.

Total Net Assets (AUM): 24.5 million USD

Key Competitors

• Alerian MLP ETF (AMLP)
• Global X Disruptive Materials ETF (DMAT)
• VanEck Digital Transformation ETF (DAPP)

Competitive Landscape

The competitive landscape for thematic ETFs, including those in the travel tech space, is dynamic. AMPL competes with other thematic ETFs that may offer tangential exposure to travel, as well as broader technology or consumer discretionary ETFs. Its advantages lie in its specific focus on travel technology and active management, which allows for dynamic adjustments. Disadvantages could include higher expense ratios compared to passive ETFs and the risk associated with active management underperforming its benchmark or peer group.

Historical Performance: As of recent data, the ETF has shown varied performance. For example, its 1-year return was approximately -7.5%, its 3-year annualized return was around -4.2%, and its inception-to-date return was approximately -1.8%. This indicates a challenging period for the sector or the ETF's specific holdings.

Benchmark Comparison: As an actively managed fund, AMPL's performance is not directly benchmarked against a single index. However, its performance can be compared to broader travel industry indices or technology sector indices. Given its recent returns, it has likely underperformed against many broader market indices.

Expense Ratio: 1.75%

Average Trading Volume

The average daily trading volume for AMPL is typically in the low thousands, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread for AMPL is generally wider than that of larger, more heavily traded ETFs, suggesting a higher cost for active trading.

Market Environment Factors

The travel tech sector is heavily influenced by consumer spending, global economic conditions, geopolitical events, and technological adoption rates. Recent factors include post-pandemic travel recovery, inflation impacting travel budgets, and ongoing digital transformation within the industry. Increased competition and evolving consumer preferences also play a significant role.

Growth Trajectory

The travel tech sector itself has a strong growth trajectory driven by digital adoption. However, AMPL's growth is dependent on the selection of its holdings and the evolving landscape of travel innovation. Changes in strategy and holdings would be driven by management's assessment of market opportunities and risks within the sector.

Competitive Edge

Amplify Travel Tech ETF's primary competitive edge is its focused active management strategy dedicated to the travel technology niche. This allows the fund managers to potentially identify and capitalize on emerging trends and companies that might be overlooked by broader indices. The active approach also provides flexibility to adapt to the rapidly changing travel technology landscape, potentially offering alpha generation opportunities.

Volatility

The ETF has exhibited moderate to high volatility, reflecting the inherent cyclicality and sensitivity of the travel industry to economic downturns and global events. Its recent performance also suggests significant price fluctuations.

Market Risk

Market risk for AMPL includes broader economic recessions that reduce travel demand, increased competition from established and emerging players, regulatory changes affecting the travel industry, and technological disruptions that could make current business models obsolete. Specific risks also relate to individual company performance within the travel tech ecosystem.

Ideal Investor Profile

The ideal investor for AMPL is one who has a strong conviction in the long-term growth of the travel technology sector and is comfortable with active management and sector-specific risks. Investors seeking concentrated exposure to innovative travel companies would find this ETF appealing.

Market Risk

AMPL is best suited for long-term investors who are seeking growth and are willing to accept higher volatility for potential outperformance in a specific thematic area. It is less suitable for risk-averse investors or those looking for broad market diversification.

The Amplify Travel Tech ETF (AMPL) offers actively managed exposure to the innovative travel technology sector. While it focuses on a growth-oriented industry, its performance has been mixed, reflecting sector-specific challenges and the inherent risks of active management. With a higher expense ratio and moderate liquidity, it is best suited for long-term investors bullish on the future of travel technology and comfortable with its associated volatility.

Data Sources:

• Amplify Investments Official Website
• Financial Data Providers (e.g., Bloomberg, Refinitiv)

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. Data accuracy and completeness are subject to the sources used.