Amplify Etfs Launches Two Fixed Income Covered Call Etfs For Targeted Annualized Income
| Feature | Amplify LQD Investment Grade 12% Target Income ETF (LQDM) | Amplify HYG High Yield 10% Target Income ETF (HYGM) |
| Target Annual Income | 12% | 10% |
| Underlying Exposure | U.S. investment grade corporate bonds | U.S. high yield corporate bonds |
| Strategy | Weekly covered call strategy on bond exposure | Weekly covered call strategy on bond exposure |
| Income Generation | Option premium income and interest income from underlying bonds | Option premium income and interest income from underlying bonds |
| Distribution Frequency | Monthly | Monthly |
| Fees & Expenses | ||
| Management Fee | 0.40% | 0.40% |
| Acquired Fund Fees & Expenses2 | 0.14% | 0.49% |
| Fee waiver3 | N/A | (0.10%) |
| Net Expense Ratio | 0.54% | 0.79% |
There is no assurance the Fund will achieve its Target Income, if NAV is flat or declines during a one-year period, annualized income may be significantly less than the Target Income. Distributions are not guaranteed.
Learn more:
- Amplify LQD Investment Grade 12% Target Income ETF (LQDM) Prospectus Amplify HYG High Yield 10% Target Income ETF (HYGM) Prospectus Amplify TLT U.S. Treasury 12% Option Income ETF (TLTP) Prospectus
About Amplify ETFs
Amplify ETFs, sponsored by Amplify Investments, has over $19 billion in assets under management (as of 3/31/2026). Amplify ETFs delivers expanded investment opportunities for investors seeking growth, income, and risk-managed strategies across a range of actively managed and index-based ETFs. To learn more visit AmplifyETFs.
Sales Contact:
Amplify ETFs
855-267-3837
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Media Contact:
Gregory for Amplify ETFs
Kerry Davis
610-228-2098
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1Distribution Rate is the normalized current distribution (annualized) over NAV per share. 30-Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among bond funds. It is based on the most recent month end. This figure reflects the income earned from dividends – excluding option income – during the period after deducting the Fund's expenses for the period. There is no guarantee that distributions will be made.
2Estimated based on expected expenses for the current fiscal year.
3The investment advisor has agreed to waive 0.10% of the management fee until at least 4/17/2027.
Carefully consider the Fund's investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund's statutory and summary prospectuses, which may be obtained at Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. 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.
There is no guarantee that the Funds will meet their investment objectives or Target Income. The Funds are not actively managed and the Fund's return may not match or achieve a high degree of correlation with the return of the Indexes. The Funds are non-diversified and may be concentrated, which can increase volatility. The Funds are subject to market risk, interest rate risk, inflation risk, credit risk, and underlying funds risk. LQDM has risks associated with corporate bonds and high yield securities. HYGM has risks associated with high yield corporate bonds and high yield securities. Rising interest rates generally reduce the value of fixed income investments.
Covered call strategies may limit upside potential while still exposing the Funds to downside risk. Covered puts can incur substantial losses if the underlying asset rises sharply, with premiums offering limited protection. The use of FLEX Options and other derivatives involves additional risks. Monthly distributions may include return of capital, which lowers the investor's cost basis and could result in higher loss.
The Bloomberg U.S. High Yield Corporate Bond 10% Income Covered Call Index is designed to provide exposure to U.S. dollar denominated high yield corporate bonds and generate 10% income through interest payments and option premiums. The Bloomberg U.S. Investment Grade Corporate Bond 12% Income Covered Call Index is designed to provide exposure to U.S. investment grade corporate bonds and generate 12% income through interest payments and option premiums. Bloomberg U.S. Treasury 20+ Year 12% Premium Covered Call 2.0 Index is designed to provide a targeted annualized option premium income of 12% through writing weekly covered call options.
Amplify ETFs are distributed by Foreside Fund Services, LLC.
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