Amplify ETF Trust - Amplify Ethereum Max Income Covered Call ETF

Frequently Asked Questions About EHY

What does EHY invest in?

EHY does not invest directly in Ether but employs a covered call strategy on the price return of Ether. The actively managed fund-of-funds targets 50-80% annualized option premium. A portion of the funds long exposure comprises of holding ETP shares, as well as buying call options and selling put options with maturities of less than one year. The synthetic covered call strategy via standardized exchange-traded and FLEX options consists of synthetic long exposure, covered call writing, and US Treasurys and cash. To maximize income and provide weekly upside potential, the fund writes about 5-10% out-of-the-money call options with maturities of one week or less that could result in compounding premiums. However, this limits participation in potential gains if shares increase in value. The fund indirectly invests in shares of ETPs through a wholly owned Cayman subsidiary. There is no guarantee the fund will achieve its target.

What is the expense ratio of EHY?

Amplify ETF Trust - Amplify Ethereum Max Income Covered Call ETF (EHY) charges an expense ratio of 0.75%. This is the annual fee deducted from fund assets to cover management and operations.

What is EHY's distribution yield?

EHY's trailing-twelve-month yield is 86.81%, calculated from the sum of distributions over the past year divided by the current price. A rate this high reflects large option-premium distributions against a NAV that has declined over the same period. Part of each payout may be return of capital rather than earned income.

How does EHY's covered-call strategy work?

EHY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is EHY?

Amplify ETF Trust - Amplify Ethereum Max Income Covered Call ETF (EHY) manages $4.7M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is EHY actively managed or an index fund?

EHY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.