Amplify ETF Trust - Amplify Samsung SOFR ETF (SOFR)

Overview

The Amplify Samsung SOFR ETF (SOFR) seeks to provide current income consistent with capital preservation by investing primarily in short-term U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities, aiming to track the performance of the Bloomberg Samsung SOFR Index.

Reputation and Reliability

Amplify ETFs is known for its innovative ETF offerings, with a focus on niche strategies and thematic investing. Their reputation is generally positive, though they are a smaller player compared to industry giants.

Management Expertise

Amplify ETFs has a team of experienced professionals dedicated to ETF management and strategy development.

Goal

To provide current income consistent with capital preservation.

Investment Approach and Strategy

Strategy: The ETF aims to track the Bloomberg Samsung SOFR Index, which measures the performance of a portfolio of overnight U.S. Treasury repurchase agreements.

Composition The ETF primarily holds short-term U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities.

Market Share: The Amplify Samsung SOFR ETF is a relatively small player in the short-term fixed income ETF market, and its market share is still growing.

Total Net Assets (AUM): 16229889

Key Competitors

• BIL (SPDR Bloomberg 1-3 Month T-Bill ETF)
• TFLO (iShares Treasury Floating Rate Bond ETF)
• USFR (WisdomTree Floating Rate Treasury Fund)

Competitive Landscape

The short-term fixed income ETF market is highly competitive, with several large and established players. SOFR differentiates itself with its focus on Samsung SOFR index, but faces challenges in gaining market share against ETFs with greater liquidity and brand recognition. The advantages for SOFR would be it specifically targets the SOFR rate. A disadvantage would be it is a new ETF without the track record of its competitors.

Historical Performance: The ETF is relatively new, so long-term historical performance data is limited. Performance will closely track the SOFR rate.

Benchmark Comparison: The ETF's performance should closely mirror the Bloomberg Samsung SOFR Index.

Expense Ratio: 0.08

Average Trading Volume

The average trading volume is moderate and can vary based on market conditions, meaning it may be less liquid than some of its larger competitors.

Bid-Ask Spread

The bid-ask spread is typically tight, but can widen during periods of market volatility.

Market Environment Factors

Economic indicators such as interest rate changes, inflation, and Federal Reserve policy significantly influence the performance of SOFR and the attractiveness of short-term fixed income investments.

Growth Trajectory

Growth of ETF will be tied to the appeal of SOFR as an alternative to other money market instruments and investor demand for short-term fixed income exposure. Future changes to strategy and holdings are not anticipated to deviate from its core objective of tracking the Samsung SOFR Index.

Competitive Edge

SOFR's competitive edge comes from its specific focus on the Bloomberg Samsung SOFR Index and its potential appeal to investors seeking exposure to the secured overnight financing rate. While it doesn't possess a wide moat due to the commoditized nature of short-term fixed income, its specific index tracking can attract a niche investor base. The fund's low expense ratio of 0.08% can give it a slight advantage. As the fund grows in size, it could establish a stronger foothold in the market.

Volatility

The ETF's volatility is expected to be low due to its focus on short-term, high-quality fixed income securities.

Market Risk

The primary market risk is interest rate risk, as changes in the SOFR rate will directly impact the ETF's yield and potential capital appreciation.

Ideal Investor Profile

The ideal investor is a risk-averse individual or institution seeking a low-risk, short-term investment option for capital preservation and current income. Investors looking for an alternative to traditional money market funds could also find this ETF appealing.

Market Risk

The ETF is best suited for short-term investors, passive index followers, and those seeking a stable, low-volatility investment.

The Amplify Samsung SOFR ETF provides exposure to short-term U.S. Treasury securities and repurchase agreements, tracking the Bloomberg Samsung SOFR Index. It aims to offer current income with minimal risk. Although a small player in the market, it caters to risk-averse investors seeking short-term, liquid investments. Its performance is closely tied to the SOFR rate, making it a suitable option for those seeking to benchmark against this key interest rate. Its low expense ratio adds to its appeal as a cost-effective short-term investment vehicle.

Data Sources:

• Amplify ETFs Website
• Bloomberg
• Yahoo Finance
• SEC Filings

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.