An ETF With 12% Returns? New Offering Wants To Compete Using Options
Portfolio Pulse from Surbhi Jain
Amplify ETFs has launched the Amplify Bloomberg U.S. Treasury Target High Income ETF (BATS:TLTP), aiming for a 12% annual income target through a covered call strategy on U.S. Treasury assets. This ETF is designed to offer consistent returns with less volatility compared to the broader equities market. TLTP competes with the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD), offering a less volatile, bond-based alternative for income-focused investors.
October 29, 2024 | 12:34 pm
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POSITIVE IMPACT
Amplify ETFs has launched TLTP, targeting a 12% annual income through a covered call strategy on U.S. Treasuries. It offers a less volatile alternative to equity-focused ETFs like QYLD.
The launch of TLTP is significant as it offers a new investment option targeting high income with lower volatility, appealing to risk-averse investors. Its unique strategy and backing by reputable firms suggest a positive reception.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
TLTP enters the market as a competitor to QYLD, offering a bond-based, less volatile alternative with a similar income target. This could impact QYLD's attractiveness to risk-averse investors.
While TLTP offers a new alternative, QYLD's established position and tech-focused strategy may still appeal to growth-oriented investors. However, TLTP's entry could shift some risk-averse investors away from QYLD.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70