(SWAN) Amplify BlackSwan Growth - Ratings and Ratios

The Amplify BlackSwan Growth & Treasury Core ETF (SWAN) is designed to mitigate the impact of rare and unpredictable events, known as Black Swans, on investment portfolios. By investing at least 80% of its assets in U.S. Treasury securities and long-dated call options on the SPDR S&P 500 ETF Trust (SPY), the fund aims to provide capital protection while still allowing for potential growth.

To achieve its objective, SWAN tracks a rules-based, quantitative index that allocates assets between low-risk U.S. Treasury securities and long-dated call options on the S&P 500 index. This strategy enables the fund to benefit from the potential upside of the equity market while minimizing downside risk. Key Performance Indicators (KPIs) to monitor for SWAN include its ability to limit losses during market downturns, its correlation with the S&P 500 index, and its expense ratio relative to its peers.

From a risk management perspective, SWANs allocation to U.S. Treasury securities provides a level of stability and liquidity, while the long-dated call options on SPY offer a potential hedge against market volatility. To evaluate the effectiveness of this strategy, investors can track metrics such as the funds Sharpe ratio, maximum drawdown, and beta relative to the broader market. By analyzing these KPIs, investors can gain a deeper understanding of SWANs risk-adjusted performance and its potential role in a diversified investment portfolio.

In terms of its investment profile, SWAN is categorized as an Equity Hedged ETF, indicating its focus on managing downside risk while maintaining exposure to the equity market. With Assets Under Management (AUM) of $253.22 million, SWAN has established a presence in the market, and its liquidity profile can be evaluated by monitoring its average trading volume and bid-ask spreads.