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Amplify ETFs Launches the Amplify Natural Resources Dividend Income ETF (NYSE Arca: NDIV)
Source: Nasdaq GlobeNewswire / 24 Aug 2022 05:00:00 America/Chicago
CHICAGO, Aug. 24, 2022 (GLOBE NEWSWIRE) -- Amplify ETFs announces the launch of the Amplify Natural Resources Dividend Income ETF (NYSE Arca: NDIV), an index-based ETF investing in dividend-paying U.S. exchange-listed equities operating primarily in natural resource and commodity-related industries such as energy, chemicals, agriculture, metals & mining, paper products and timber. The fund seeks investment results that generally correspond to the price and yield of the EQM Natural Resources Dividend Income Index. NDIV has a monthly distribution schedule.
“We believe that select dividend-paying energy and materials stocks are positioned attractively due to strong cash flows, growing distributions and current price-to-earnings (P/E) ratios,” said Christian Magoon, CEO of Amplify ETFs. “For example, the EQM Natural Resources Dividend Income Index has a P/E ratio of 5.51 compared to the S&P 500 Index of 19.00. Additionally, the energy sector is currently generating higher or more attractive dividends than the S&P 500. We believe these positive attributes provide an opportunity for high monthly income potential.”1,2
NDIV offers a way for investors to capture the opportunities in both “old” and “new” energy companies, as well as the related materials sector. It should be noted that the energy sector’s dividends have grown faster than any other part of the U.S. equity market. Since 2016, energy companies’ dividend amounts were up 80% over the last five-year period.1 Since 2018, the average dollar amount of dividends among energy companies has grown over 50%, which is up from the prior three years’ growth of only 5%.2
NDIV will invest in U.S.-traded American depositary receipts (ADRs) or over-the-counter (OTC) listed shares of global natural resource, commodity-related companies — any potential income would not be subject to foreign tax withholding.
Investors can learn more about NDIV at AmplifyETFs.com/NDIV.
About Amplify ETFs
Amplify ETFs, sponsored by Amplify Investments, has over $3.5 billion in assets across its suite of ETFs (as of 7/31/2022). Amplify believes the ETF structure empowers investors through efficiency, transparency and flexibility. Amplify ETFs deliver expanded investment opportunities for investors seeking growth, income and risk-managed strategies.
Sales Contact:
Amplify ETFs
855-267-3837
info@amplifyetfs.com
Media Contact:
Gregory FCA for Amplify ETFs
Kerry Davis
610-228-2098
amplifyetfs@gregoryfca.comCarefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s statutory and summary prospectus, which may be obtained by calling 855-267-3837 or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. You could lose money by investing in the Fund. 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. There can be no assurance that the Fund’s investment objectives will be achieved.
Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. Diversification does not assure a profit or protect against a loss in a declining market. The Fund is subject to the risks associated with companies in the natural resources and commodities-related industries, energy and materials sectors which can cause volatility and affect its value. These industries can be significantly affected by rapid changes in supply and demand, changes in interest rates, government policies and regulations, environmental concerns, worldwide politics and economic conditions.
The Fund will invest in American Depositary Receipts which may be subject to certain risks associated with direct investments in the securities of non-U.S. companies, such as currency, political, economic and market risks because their values depend on the performance of the non-dollar denominated underlying non-U.S. securities. Dividend-Paying Companies are not obligated to pay or continue to pay dividends on their securities. Therefore, there is a possibility that a company could reduce or eliminate the payment of dividends in the future, which could negatively affect the Fund’s performance.
The Fund employs a “passive management” or indexing investment approach that seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Differences in timing of trades and valuation as well as fees and expenses, may cause the fund to not exactly replicate the index known as tracking error.
Amplify Investments LLC is the Investment Adviser to the Fund and Toroso Investments, LLC serve as the Investment Sub-Advisers.
Amplify ETFs are distributed by Foreside Fund Services, LLC.
1 Data as of 8/1/2022 and is subject to change. It is not possible to invest directly in an index. The price-to-earnings (P/E) ratio is the ratio for valuing a company that measures its current share price relative to its per-share earnings.
2 Why Energy Stocks Are Gushing High Dividends, Morningstar, February 9, 2022. Based on the Morningstar Energy Sector versus the Morningstar U.S. Index as of January 22, 2022.