YYY: Fund Of Funds With 12% Yield And Asset Erosion
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Fred PiardInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryThe Amplify CEF High Income ETF (YYY) offers a 12% yield via a portfolio of 60 closed-end funds, targeting income-oriented investors.YYY is well-diversified in funds, fund issuers, fund categories and has a 60/40 stock-bond exposure.YYY has underperformed both a 60/40 benchmark and key competitors.Despite steady distributions since 2019, YYY's payout has declined 30% over 10 years, and price history points to long-term erosion.While YYY provides high yield and diversification, its lackluster total return and history of strategy tweaks add a layer of uncertainty for investors. SomeMeans/iStock via Getty Images Fast Facts About the Amplify CEF High Income ETF Amplify CEF High Income ETF (YYY) was launched on June 21,2013 and tracks the NASDAQ CEF High IncomeTM Index. YYY is a fund of funds: it has a portfolio ofThis article was written byFred Piard16.24K FollowersFollowFred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010. Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.