(NDIV) Amplify Trust - Amplify - Ratings and Ratios

The Amplify Natural Resources Dividend Income ETF (NDIV) is an investment vehicle that focuses on dividend-paying stocks of companies operating in natural resource and commodity-related sectors, including energy, chemicals, agriculture, and metals & mining. By tracking a gross total return index, the fund aims to provide exposure to a diversified portfolio of global companies within these industries.

The funds investment strategy involves allocating at least 80% of its net assets to the securities that comprise the underlying index, primarily consisting of common stocks and depositary receipts. This concentrated approach allows the fund to capitalize on the dividend yield of its constituent companies, potentially generating a regular income stream for investors.

As a non-diversified ETF, NDIV is more susceptible to the performance of its individual holdings, which can result in higher volatility. However, this also enables the fund to capitalize on the strengths of its constituent companies, potentially leading to more significant returns. With a relatively small AUM of $11.65M, the fund may be more agile in responding to market opportunities, but it also faces challenges in terms of liquidity and economies of scale.

Analyzing the technical data, we observe that the funds last price is $26.90, slightly below its SMA20 and SMA50. The SMA200 is at $27.81, indicating a potential resistance level. The ATR is 1.77%, suggesting moderate volatility. Based on these indicators, we can forecast that the fund may experience a short-term consolidation phase, potentially followed by a breakout above the SMA200 if the underlying index performs well. If the energy and commodity-related sectors continue to experience growth, NDIV may benefit from the increased demand for natural resources, potentially driving the price towards $29.84, the 52-week high.

Combining the technical and fundamental analysis, our forecast suggests that NDIV may experience a moderate upside in the short term, driven by the performance of its underlying holdings and the overall trend in the natural resources sector. However, investors should be cautious of the funds non-diversified nature and the potential risks associated with the commodity-related industries. A close monitoring of the funds price action and the underlying index is recommended to adjust the investment strategy accordingly.