Amplify BlackSwan Growth & Treasury Core ETF (SWAN US) - Investment Proposition

Core Investment Proposition - Amplify BlackSwan Growth & Treasury Core ETF (SWAN) aims for equity-like growth while providing a defensive fixed-income core through a combination of U.S. Treasuries and long-dated in-the-money equity call options [1] - The strategy is designed to participate in large-cap U.S. equity advances while mitigating severe drawdowns, appealing to investors who prefer smoother ride characteristics over full beta capture [1] - The ETF's rules-based design typically results in lower turnover and rebalancing to maintain the option profile as market conditions change [1] Performance Characteristics - SWAN exhibits notable interest-rate sensitivity due to its Treasury allocation and an options delta that may lag during rapid, momentum-driven market surges [1] - The structure provides resilience during equity sell-offs and when high-quality duration is in demand [1] - SWAN can serve multiple roles in investment portfolios, including as a core defensive equity substitute, a "sleep-well" capital sleeve, or a drawdown-aware satellite [1] Market Conditions and Strategy Suitability - The ETF is particularly timely when downside protection is prioritized or when interest rates are stable to declining [1] - SWAN may face challenges in environments where interest rates rise sharply without corresponding equity gains [1] - Monitoring option-roll execution and duration concentration is essential for effective management of the ETF [1]