Amplify Launches 3rd 'Black Swan' ETF
by Dan Mika, ETF.com
Excerpts taken from article:
Amplify ETFs is expanding its lineup of funds meant to provide downside protection against market crashes while gathering partial returns of a major index, this time following the Nasdaq-100.
Amplify ETFs is expanding its lineup of funds meant to provide downside protection against market crashes while gathering partial returns of a major index, this time following the Nasdaq-100.
The Amplify BlackSwan Tech & Treasury ETF (QSWN) debuted on the NYSE Arca on Thursday with an expense ratio of 0.49%.
[Learn more about QSWN here.]
The fund follows an index that holds approximately 90% of its assets in Treasurys ranging in maturity from two years to 30 years with the goal of matching the initial duration of a 10-year Treasury note.
QSWN follows the Amplify BlackSwan Growth & Treasury Core ETF (SWAN) launched in 2018, and the Amplify BlackSwan ISWN ETF (ISWN) launched in January, which respectively apply the same strategy of holding Treasurys and long-dated options on equity ETFs.
SWAN and ISWN hold a combined $976 million in assets under management.
[Learn more about SWAN here and ISWN here.]
Amplify CEO Christian Magoon said the Nasdaq-100 is increasingly popular as a large cap growth allocation in portfolios. That gives reason for a hedged exposure to be available for investors, especially as interest rate hikes next year threaten to damper sky-high valuations.
“The strong recent return set, concentration of the index and the markedly high PE’s of the companies in this index are certainly legitimate investor concerns,” he said.
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