Amplify ETF Trust - Amplify Solana 3% Monthly Option Income ETF

Frequently Asked Questions About SOLM

What does SOLM invest in?

SOLM employs a synthetic covered call strategy on the price return of Solana (SOL). The actively managed fund-of-funds targets a 36% annualized option premium. A portion of the funds long exposure comes from holding ETP shares, as well as buying call options and selling put options with maturities of less than one year. The funds option strategy combines synthetic long exposure, covered call writing, US Treasuries, and cash. Typically, the fund writes 510% out-of-the-money call options with maturities of one week or less, with the exact amount adjusted based on each underlying funds NAV to achieve the 36% target. This approach may limit participation in potential gains if ETP shares increase in value. The fund invests indirectly in ETP shares through a wholly owned Cayman Islan subsidiary. There is no guarantee that the fund will achieve its targeted annualized option premium.

What is the expense ratio of SOLM?

Amplify ETF Trust - Amplify Solana 3% Monthly Option Income ETF (SOLM) charges an expense ratio of 0.75%. This is the annual fee deducted from fund assets to cover management and operations.

What is SOLM's distribution yield?

SOLM's trailing-twelve-month yield is 38.55%, 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 SOLM's covered-call strategy work?

SOLM 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 SOLM?

Amplify ETF Trust - Amplify Solana 3% Monthly Option Income ETF (SOLM) manages $1.9M 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 SOLM actively managed or an index fund?

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