Amplify ETF Changes Course

August 30, 2017

Effective yesterday, Amplify ETFs completely renovated the Amplify YieldShares Prime 5 Dividend ETF (PFV), giving it a new investment goal in addition to a new name, ticker and underlying index. Deutsche Asset Management is set to make similarly dramatic changes to two of its funds.

The rechristened Amplify YieldShares Senior Loan and Income ETF (YESR), when it traded under the ticker “PFV,” used to invest in a basket of five dividend-focused ETFs selected based on their yields, volatility levels and costs. Now, YESR invests in closed-end funds that themselves invest in various forms of floating-rate debt, primarily senior loans.

Most startling about the change is YESR’s increased expense ratio. PFV came with an expense ratio of 0.45%, but YESR costs a rather stunning 2.15%. That’s actually not terribly expensive for ETFs investing in CEFs. The largest such product, the PowerShares CEF Income Composite Portfolio (PCEF), which has nearly $685 million in assets under management, costs 1.94%, while the First Trust CEF Income Opportunity ETF (FCEF) charges a rather stunning 2.50%.

Deutsche Remakes Europe ETFs

Deutsche Asset Management is taking a similar course with two of its currency-hedged ETFs tracking European markets. The Deutsche X-Trackers MSCI Italy Hedged Equity ETF (DBIT) and the Deutsche X-Trackers MSCI Southern Europe Hedged Equity ETF (DBSE), both of which have less than $3 million in AUM apiece, will see new life as unhedged foreign equity ETFs.

Moreover, both will track Solactive indexes; they currently track MSCI indexes.

DBIT will become the Deutsche X-trackers Germany Equity ETF, while DBSE will become the Deutsche X-trackers Eurozone Equity ETF. The changes are scheduled to become effective Oct. 27.

Contact Heather Bell at [email protected]

 

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