QSWN | Amplify BlackSwan Tech & Treasury ETF

QSWN ISSUER

The Amplify BlackSwan Growth & Treasury Core ETF, is a unique investment vehicle designed to address the unpredictable nature of Black Swan events while aiming to provide capital protection. The fund primarily invests in securities composing the S-Network BlackSwan Tech & Treasury Index, which includes U.S. Treasury securities and long-dated call options on the Invesco QQQ Trust. Managed by Cerity Partners LLC and Toroso Investments, LLC, the fund utilizes an indexing investment approach to replicate the Index's performance. The Index itself seeks to balance participation in QQQ's gains with a buffer against significant losses, allocating around 90% to U.S. Treasury securities and approximately 10% to LEAP Options on QQQ. These LEAP Options allow for participation in about 70% of QQQ's upside movements over a full market cycle while mitigating losses, reinforced by the 90% allocation to U.S. Treasury securities. The U.S. Treasury securities portfolio aims for an intermediate duration to lower overall portfolio risk. Reconstitution and rebalancing occur semi-annually to maintain portfolio allocation, ensuring alignment with investment objectives. Classified as non-diversified under the Investment Company Act of 1940, the fund provides a strategic approach to address Black Swan events within an investment portfolio.

QSWN DIVIDEND

The Amplify BlackSwan Growth & Treasury Core ETF (QSWN) seeks to provide investors with a unique approach to addressing Black Swan events while aiming for capital preservation. However, it's important to note that this ETF, focusing on capital preservation and downside protection, may not typically emphasize generating regular dividend income. The primary focus of QSWN is on the performance of the S-Network BlackSwan Tech & Treasury Index, which prioritizes investments in U.S. Treasury securities and long-dated call options on the Invesco QQQ Trust. Consequently, investors considering QSWN for dividend income may find that this ETF does not align with their income objectives. Investors interested in dividend-focused investments may wish to explore other ETFs or securities more suited to their income needs.

QSWN TRACKING

The Amplify BlackSwan Growth & Treasury Core ETF (QSWN) is designed to track the performance of the S-Network BlackSwan Tech & Treasury Index. This index aims to provide capital protection against unexpected and highly disruptive events, known as Black Swan events, while allowing for some participation in the gains of the Invesco QQQ Trust (QQQ). QSWN invests at least 80% of its net assets in securities comprising the index, which primarily includes U.S. Treasury securities and long-dated call options (LEAP Options) on QQQ. Managed using an indexing investment approach, QSWN seeks to replicate, before fees and expenses, the performance of the underlying index. The index provider, S-Network Global Indexes, Inc., ensures the rules-based, quantitative methodology of the index, which undergoes semi-annual reconstitution and rebalancing to maintain alignment with its objectives. While QSWN does not precisely mirror the returns of QQQ due to its focus on capital protection, its tracking aims to provide investors with exposure to the index's strategy of balancing potential gains with downside protection against Black Swan events.

QSWN CORRELATION

The Amplify BlackSwan Growth & Treasury Core ETF (QSWN) may exhibit varying levels of correlation with different market indices, depending on market conditions and the performance of its underlying holdings. Given its focus on capital protection against Black Swan events and its unique allocation to U.S. Treasury securities and long-dated call options on the Invesco QQQ Trust, QSWN's correlation with traditional equity indices like the S&P 500 or Nasdaq-100 may differ significantly. Generally, QSWN's correlation with broad equity indices might be lower compared to traditional equity-focused ETFs, particularly during periods of market stress or significant downturns when its emphasis on capital preservation becomes more pronounced. However, its correlation may increase during periods of market stability or bullish market conditions, especially if the underlying assets in the Invesco QQQ Trust exhibit strong performance. Investors seeking to understand QSWN's correlation should consider consulting historical performance data and analyzing its underlying holdings to gauge how the ETF's performance aligns with broader market movements. Additionally, the fund's investment strategy and the characteristics of its underlying assets can influence its correlation with various market indices over time.

QSWN SECTOR

The Amplify BlackSwan Growth & Treasury Core ETF (QSWN) is not traditionally categorized by sector in the same way as equity-focused ETFs, as its primary objective is capital preservation against Black Swan events rather than sector-specific growth or income generation. However, its underlying holdings do provide exposure to specific sectors indirectly. QSWN invests in U.S. Treasury securities and long-dated call options on the Invesco QQQ Trust, which primarily includes large-cap technology companies listed on the Nasdaq Stock Market. As a result, while QSWN does not focus on sector allocation in the traditional sense, its performance may be influenced by the technology sector due to its significant exposure to QQQ. The Nasdaq-100 Index, which QQQ seeks to track, is predominantly composed of technology-related companies, although it also includes other sectors such as consumer discretionary, healthcare, and communication services. Therefore, QSWN's performance may reflect trends and developments within the technology sector, albeit indirectly through its holdings in QQQ. Investors considering exposure to specific sectors should evaluate QSWN's holdings and investment strategy to determine its suitability for their investment

QSWN EXPOSURE

The Amplify BlackSwan Growth & Treasury Core ETF (QSWN) offers exposure to a unique investment strategy designed for capital preservation against Black Swan events while allowing for potential participation in market gains. QSWN primarily invests in securities that comprise the S-Network BlackSwan Tech & Treasury Index, emphasizing U.S. Treasury securities and long-dated call options (LEAP Options) on the Invesco QQQ Trust (QQQ). The index's methodology aims to balance capital protection with some participation in QQQ's gains. Approximately 90% of the index's market capitalization is allocated to a portfolio of U.S. Treasury securities, which provides a buffer against significant losses during market downturns or Black Swan events. These Treasury securities have an intermediate duration, aiming to lower portfolio risk levels. The remaining approximately 10% of the index's market capitalization is allocated to a portfolio of LEAP Options on QQQ. These options allow for exposure to the Nasdaq-100 Index, which consists primarily of technology-focused companies. However, due to the terms of the LEAP Options, the index typically participates in approximately 70% of QQQ's gains over a full market cycle. This participation is balanced with a similar level of participation in QQQ's losses, mitigated by the significant allocation to U.S. Treasury securities. Overall, QSWN provides exposure to a strategic investment approach focused on capital preservation and downside protection against unforeseen market events, while still allowing for some potential upside participation in the market through QQQ LEAP Options. Investors interested in a diversified approach with a focus on capital preservation may find QSWN suitable for their investment objectives.