CHICAGO--(BUSINESS WIRE)--Amplify ETFs announces the launch of the Amplify YieldShares Prime 5 Dividend ETF (BATS: PFV), the first YieldShares ETF to enter the market via the Amplify platform. PFV is a portfolio of the five highest-ranked U.S. Dividend ETFs, based on the Prime 5 U.S. Dividend ETF Index scoring and selection criteria, in the following three categories: 1) high dividend income, 2) low share price volatility, and 3) low expenses.
PFV seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield information of the Prime 5 U.S. Dividend ETF Index. While the Index holds five dividend ETFs, the underlying exposure of these ETFs equaled more than 750 dividend-paying stocks as of July 31, 2016. In addition, the largest single stock exposure in the overall portfolio was 5.2% as of the July 31, 2016.
“With over 130 dividend ETFs in the marketplace, it is becoming increasingly difficult for investors to navigate the dividend ETF landscape,” said Christian Magoon, ETF industry veteran and CEO of Amplify Investments. “PFV is designed to make dividend investing easy.”
PFV combines the analysis and selection process that many investors must undertake on their own. In addition, as an index-tracking ETF, the fund seeks to rebalance in a tax efficient manner on a quarterly basis. PFV will have a quarterly distribution schedule.
“Millions of investors have benefited from the success of the ETF industry, but there are now almost 2,000 products in the U.S., and it has become increasingly difficult to evaluate competing and complex funds,” said Kris Monaco and Chris Yeagley, Managing Partners of Level ETF Ventures. “The Prime 5 U.S. Dividend ETF Index solves this problem, and allows investors of all types to track the highest scoring dividend ETFs in the U.S. We are proud to expand our partnership with Amplify Investments to launch this exciting new product.”
Investors can learn more about PFV at AmplifyETFs.com.
About Amplify ETFs
Amplify believes the ETF structure empowers investors through efficiency, transparency and flexibility. Using those benefits as a foundation, Amplify seeks to build ETFs powered by investment strategies from leading index providers and asset managers within unique market segments. Amplify ETFs are sponsored by Amplify Investments, a registered investment advisor. Amplify is also the sponsor of YieldShares, a brand of income-oriented ETFs. The firm was founded by Christian Magoon, an ETF veteran who has launched over 50 ETFs in the United States to date.
Prime Indexes is the Index Provider of the Prime 5 U.S. Dividend ETF Index (PFIVE). Its indexes are based on the principles of intuitive selection criteria; common sense factors to identify the leading ETFs in a specific category. The PFIVE Index is a rules-based index seeking to provide targeted exposure to the five highest ranked ETFs with demonstrated dividend growth. That ranking is based on the proprietary Prime ScoreTM methodology and includes the following factors: high dividend income, low share price volatility, and low expenses. Price and return data are independently calculated and published by Prime Indexes. For complete index methodology and educational material, please visit www.PrimeIndexes.com. Prime Indexes is owned by Level ETF Ventures LLC.
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ statutory and summary prospectus, which may be obtained by calling 855-267-3837 or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.
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. An investment in the Fund 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 Fund’s investment objective will be achieved. The Fund will invest in five ETFs. The shares of an ETF trade like common stock and represent a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although ETFs have management fees that increase their costs. The Fund and the ETFs in which the Fund invests invest in equity securities. The value of the Shares will fluctuate with changes in the value of these equity securities. The Fund is not actively managed. The Fund invests in securities included in its Index regardless of their investment merit. The ETFs in which the Fund invests may be concentrated to a significant degree in a single industry or sector. An ETF concentrated in a single industry or sector presents more risks than a fund that is broadly diversified over several industries or sectors. The ETFs in which the Fund invests may invest in large, mid and small capitalization stocks. As a result, the Index and therefore the Fund will comprise large, mid and small capitalization stocks to the same extent. As a result, the Fund may be exposed to additional risk associated with mid and small capitalization companies. 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.
It is not possible to invest directly in an index.
Any tax or legal information provided isn't an exhaustive interpretation of some of the current income tax regulations. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.
Prime Indexes is the Index Provider for the Fund. Prime Indexes is not affiliated with the Trust, the Investment Adviser or the distributor. The Investment Adviser has entered into a license agreement with Prime Indexes to use the Prime 5 U.S. Dividend ETF Index. The Fund is entitled to use its Index pursuant to a sub-licensing arrangement with the Investment Adviser.
Diversification does not assure a profit or protect against a loss in a declining market. Amplify Investments LLC serves as the investment adviser and Penserra Capital Management LLC serves as sub adviser to the fund. Amplify ETFs are distributed by Quasar Distributors LLC.