The inception date of the Amplify YieldShares Senior Loan and Income ETF (YESR) was August 29, 2017. On that date, a previous fund, the Amplify YieldShares Prime 5 Dividend ETF (PFV), was converted into the current fund and investment objective. PFV had an inception of September 21, 2016.
Investing involves risk, including the possible loss of principal. The ETF 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 ETF. Brokerage commissions will reduce returns. You could lose money by investing in the ETF. An investment in the ETF is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. There can be no assurance that the ETF’s investment objective will be achieved. The ETF is not actively managed. The ETF invests in securities included in its Index regardless of their investment merit. An ETF concentrated in a single industry or sector presents more risks than a fund that is broadly diversified over several industries or sectors. Because the ETF 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. An investor will indirectly bear the principal risks and its share of the fees and expenses of the underlying Closed End Funds (“CEFs”). CEFs have a one-time initial public offering. Thus, once their shares are first issued, shares are not continually offered by the CEF, but trade in the open market through a stock exchange. Also, like other common stocks, share prices of CEFs will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. CEFs are subject to management risk because they are actively managed portfolios. Shares of CEFs tend to trade at a discount from their net asset value and are subject to risks related to factors such as the manager’s ability to achieve a fund’s objective, market conditions affecting a ETF’s investments and use of leverage. The CEFs in which the ETF invests may invest in mid and small capitalization stocks and as a result, the ETF may be exposed to additional risk including limited liquidity and greater price volatility than large-capitalization companies. The senior loans and other debt instruments in which the CEFs invest will have floating rates. Investments in floating rate securities include additional risks that investors should be aware of such as credit risk, interest rate risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Senior loans generally are of below investment-grade or “junk” credit quality, may be unrated at the time of investment. High yield or non-investment grade securities (commonly referred to as “junk bonds”) and unrated securities of comparable credit quality are subject to the increased risk of an issuer’s inability to meet principal and interest payment obligations and are generally considered to be speculative.
The Prime Senior Loan and Income CEF Index is designed to measure the performance of CEFs that invest in floating rate senior loans or other floating rate debt instruments, pay dividends and are listed in the United States.
Amplify Investments LLC serves as the investment adviser and Penserra Capital management LLC serves as sub adviser to the fund. The Index was created and is maintained by Prime Indexes (“Index Provider”). The Index Provider is not affiliated with the Fund, the adviser, or the sub-adviser. Amplify ETFs are distributed by Quasar Distributors LLC