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About Amplify COWS Covered Call ETF
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Inception date
Sep 20, 2023
Structure
Open-Ended Fund
Distributes
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Tax on distributions
Qualified dividends
Primary advisor
Amplify Investments LLC
Distributor
Foreside Fund Services LLC
HCOW invests in the COWS ETF, combined with employing a naked call writing strategy. The underlying ETF tracks a broad index of US large- and mid-cap stocks perceived to have high cash flows and dividend growth. The fund holds shares of COWS and writes call options on the S&P 500 Index, targeting strike prices that produce a 10% annualized gross income from the option contract premiums. The level of income received depends on market prices and volatility of the S&P 500 Index at the time of the option sale. The option writing strategy is executed by entering into one or more swap agreements that go out 13 months. The fund may hold collateral for the swaps, which decreases the exposure to the COWS ETF. The funds active management wrapper allows the fund manager to have full discretion to buy, hold, and sell securities at any time. Investors should be aware that selling naked index call options carries a high level of risk.
Classification
What's in the fund
Exposure type
Energy Minerals
Retail Trade
Stock breakdown by region
Displays a symbol's price movements over previous years to identify recurring trends.