Amplify Municipal CEF High Income ETF (YYYM)

Overview

YYYM is a strategically designed, passively managed fund focused on generating significant monthly income through a meticulously curated portfolio of 30 US municipal bond closed-end funds (CEFs). The fund emphasizes tax efficiency as the underlying investments typically enjoy exemptions from standard US federal taxes. The selection of funds for the index is informed by a rigorous two-tier screening process that evaluates several critical factors, ensuring that only the most promising funds are considered.

The screening criteria include minimum asset size, trading liquidity, yield relative to the broader municipal bond universe, and the fund's discount or premium to net asset value (NAV). Additionally, an expense ratio cap of 6% is applied, ensuring cost efficiency. The selected funds are then ranked using a comprehensive scoring method, and the top 30 funds are included in the index, which reflects an astute emphasis on maximizing income and managing risks effectively.

Portfolio weightings are assigned based on the relative yield of each fund while adhering to necessary diversification and liquidity constraints, which helps mitigate trading costs in the investment process. The index undergoes a rebalancing and reconstitution process semiannually, occurring in January and July, further optimizing the fund's alignment with market dynamics and income generation objectives.

Products and Services

• Municipal Bond Closed-End Funds (CEFs)
  

  YYYM's core offering comprises a diversified portfolio of 30 carefully selected US municipal bond closed-end funds. These funds provide investors with access to potentially high-yield, tax-exempt income, appealing to those seeking monthly cash flow while minimizing tax liabilities.

• Rigorous Fund Selection Process
  

  The fund employs a two-tier screening methodology to identify eligible CEFs. This process encompasses critical evaluation criteria including asset size, trading liquidity, yield, and expense ratios, ensuring that only the top-performing funds are selected for the portfolio.

• Dynamic Portfolio Management
  

  YYYM leverages a systematic approach to portfolio weighting, assigning allocations based on each fund's yield while ensuring adherence to diversification and liquidity constraints. This flexibility allows the fund to optimize returns while minimizing associated trading costs.

• Semiannual Rebalancing and Reconstitution
  

  The index is proactively managed with rebalancing and reconstitution occurring in January and July. This schedule allows for an adaptive response to market changes and the ongoing identification of high-yield opportunities within the municipal bond landscape.

• Tax Efficiency
  

  Investors in YYYM benefit from the tax-exempt status typically associated with the underlying municipal bonds. This feature enhances the overall appeal of the investments, particularly for individuals in higher tax brackets looking to maximize after-tax income.