YYY: More Funds But Less Returns
The Amplify CEF High-Income ETF (YYY) continues to receive a sell rating due to ongoing net asset value (NAV) erosion and inherent structural issues. Despite offering a high yield of 12.4%, the fund's payouts are unsustainable, leading to long-term declines in share price. A recommendation for a 30% dividend cut has been made to stabilize NAV, as the current monthly income does not justify the associated risks.
- ▪Amplify CEF High-Income ETF maintains a sell rating due to persistent NAV erosion and structural flaws.
- ▪YYY's high 12.4% yield is unsustainable, with payouts consistently exceeding earnings.
- ▪The fund's strategy of buying CEFs at discounts to NAV fails to filter out structurally weak holdings.
Opening excerpt (first ~120 words) tap to expand
{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://seekingalpha.com/"},{"@type":"ListItem","position":2,"name":"ETFs and Funds Analysis","item":"https://seekingalpha.com/etfs-and-funds"},{"@type":"ListItem","position":3,"name":"ETF Analysis","item":"https://seekingalpha.com/etfs-and-funds/etf-analysis"}]}{"@context":"https://schema.org","@type":"NewsArticle","mainEntityOfPage":{"@type":"WebPage","@id":"https://seekingalpha.com/article/4910033-yyy-more-funds-but-less-returns"},"author":{"@type":"Person","name":"Cain Lee","url":"https://seekingalpha.com/author/cain-lee"},"publisher":{"@context":"http://schema.org","@type":"Organization","address":{"@type":"PostalAddress","streetAddress":"244 5th…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Seeking Alpha.
Discussion
0 commentsMore from Seeking Alpha
