Investing involves risk, including the possible loss of principal. The fund is new with limited operating history. 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. You could lose money by investing in the Fund. The Fund will invest in Master Limited Partnerships (MLPs) which concentrate investments in the natural resource sector and are subject to the risks of energy prices and demand and the volatility of commodity investments. Natural disasters and/or extreme weather, also may impact energy companies. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment The Fund accrues deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any capital appreciation of its investments. This deferred tax liability is reflected in the daily NAV and as a result the Fund’s deferred tax liability used to calculate the Fund’s NAV could vary significantly from the Fund’s actual tax liability. As a corporation for tax purposes, the Fund’s earnings and profits may be subject to alternative minimum tax. The use of bank borrowings to carry out the funds oil hedge strategy may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any required asset segregation requirements. Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. Unlike many exchange-traded funds the Fund expects to effect a portion of redemptions for cash which may an adverse effect on the Fund’s performance. Medium- and small-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. The Fund may invest in shares of other pooled investment vehicles, including exchange-traded funds (“ETFs”) and exchange-traded notes (“ETNs”). Shareholders bear both their proportionate share of the expenses and risks of the underlying pooled investment vehicle.
A portion of the Fund’s distributions are expected to be treated as a return of capital for tax purposes. Returns of capital distribution are not taxable income to you but reduce your tax basis in your Shares. Such a reduction in tax basis will result in larger taxable gains and/or lower tax losses on a subsequent sale of Shares. If returns of capital exceed your tax basis, you will recognize gain as if you had sold the Shares.
An investment in the Fund does not receive the same tax benefits of a direct investment in an MLP.
The Fund is treated as a regular corporation or “C” corporation and is therefore subject to U.S. federal income tax on its taxable income at rates applicable to corporations (currently at a maximum rate of 21%), as well as state and local income taxes.
The Oil Hedged MLP Index (OILMLPTR) seeks to track midstream MLPs, while mitigating the negative impact of falling crude oil prices through a simultaneous short position in crude oil futures. Indexes are not available for investment.
Amplify Investments LLC is the Investment Adviser to the Fund, and Penserra Capital Management LLC serves as investment sub-adviser to the Fund. YieldShares is an ETF brand focused on income investing, and are sponsored by Amplify ETFs. ETP Ventures is the Index Provider, and is not affiliated with the Fund, the Investment Adviser, Sub-Adviser or Distributor. ETP Ventures’ only relationship with the
Fund is the licensing of certain service marks and service names of ETP Ventures and of the Benchmark.