CHICAGO--(BUSINESS WIRE)--Amplify ETFs today announced the scheduled liquidation of the Amplify YieldShares Oil-Hedged MLP Income ETF (CBOE BZX: AMLX) (the “Fund”). Based upon the recommendation of Amplify Investments LLC, the Fund’s investment adviser, the Board of Trustees of the Amplify ETF Trust unanimously determined that it was in the best interests of the Fund and its shareholders to liquidate the Fund.
Shareholders may sell their holdings in AMLX prior to the end of the trading day on April 19, 2018. Customary brokerage charges may apply to these transactions. The Fund will cease trading at the end of the trading day on April 19, 2018 and the shares will subsequently be de-listed. No new creation units will be sold after that time, and the Fund will liquidate on or around April 30, 2018. Any person holding shares in the Fund as of the liquidation date will receive a cash redemption amount equal to the net asset value of their shares as of that date. Shareholders generally will recognize a capital gain or loss on any redemption. The Fund may pay one or more dividends or other distributions prior to or along with any redemption payment.
Amplify Investments will bear all fees and expenses that may be incurred in connection with the liquidation of the Fund and the distribution of cash proceeds to investors, other than brokerage fees and other related expenses.
For additional information about the liquidation, shareholders of the Funds may call 1-855-AMP-ETFS (1-855-267-3837).
About Amplify ETFs
Amplify ETFs, sponsored by Amplify Investments, has over $625 million in assets across ETFs for which it is Adviser or Sub-Adviser (as of 2/28/2018). 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 is also the sponsor of YieldShares, a brand of income-oriented ETFs.
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. 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.
Amplify Investments LLC is the Investment Adviser to the Fund, and Penserra Capital Management LLC serves as investment sub-adviser to the Fund.
Amplify ETFs are distributed by Quasar Distributors LLC.