Amplify BlackSwan ISWN ETF (ISWN)

Overview

The fund presents a specific investment approach designed to cater to investors seeking exposure to a combination of U.S. Treasury securities and options trading strategies. By focusing on a blend of secure government bonds and strategic investments in long-dated call options, specifically LEAP Options on the iShares MSCI EAFE ETF (EFA), the fund aims to provide a unique balance between risk and potential returns. This combination aims to leverage the stability offered by U.S. Treasuries while attempting to capitalize on the growth potential of international equities, as represented by the EFA. The fund’s strategy of allocating a significant portion of its assets to securities that are part of its underlying index is a deliberate choice to mirror the index’s performance closely. However, it's important to note the fund's non-diversified status, indicating a potentially higher risk due to its concentrated investment strategy.

Products and Services

• U.S. Treasury Securities

  As a cornerstone of the fund's investment strategy, U.S. Treasury securities comprise approximately 90% of its index market capitalization. These securities are backed by the U.S. government and known for their safety and reliability. The fund leverages these characteristics to provide a stable foundation for its portfolio, aiming to mitigate overall investment risk.

• LEAP Options on the iShares MSCI EAFE ETF (EFA)

  About 10% of the fund's index market capitalization is allocated to LEAP Options on the EFA. These options are long-dated call options that offer the right, but not the obligation, to buy shares of the EFA at a predetermined price before the option expires. This strategy is designed to enhance potential returns by capitalizing on the growth prospects of EAFE (Europe, Australasia, and Far East) markets, while the long maturity of LEAP Options allows for extended exposure to potential market upside.