NDIV Profile
The Amplify Natural Resources Dividend Income ETF is designed to provide investors with exposure to high dividend-yielding securities within the natural resources sector. The fund aims to achieve this by investing at least 80% of its net assets, including any borrowings for investment purposes, in the securities that are constituents of its benchmark index. The index primarily comprises common stocks and depositary receipts from companies engaged in natural resources industries, including energy, metals, mining, and agriculture, which are known for their potential to offer substantial dividend income.
The investment strategy of the fund focuses on securities that are integral to the natural resources sector, providing a reliable income stream through dividends. By aligning its portfolio with the index, the ETF captures a diverse array of companies that are involved in the extraction, production, and distribution of natural resources. This approach allows investors to benefit from both the income generated by dividends and the potential capital appreciation of the underlying securities within this sector.
The fund adheres to a non-concentration policy, meaning it will not allocate more than 25% of its total assets to securities within any single industry or group of industries, unless the index itself is concentrated in a specific sector. This policy helps to manage risk by ensuring that the fund’s investments are diversified across multiple industries within the natural resources sector, although it remains non-diversified overall. Such diversification aims to mitigate the impact of adverse conditions in any one industry on the overall performance of the fund.
Overall, the Amplify Natural Resources Dividend Income ETF offers a specialized investment vehicle for those seeking to capitalize on dividend income from the natural resources sector. With a focus on companies that provide substantial dividends and an adherence to diversification principles, the fund seeks to offer both income and growth potential from its sector-specific investments. This makes it a suitable choice for investors looking to enhance their portfolios with high-yielding, dividend-producing assets in the natural resources space.
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