Amplify's semiconductors registration takes effect at 0.49%
Amplify ETF Trust made the Amplify Top 10 Semiconductors ETF registration effective on Friday, October 2, at a 0.49% fee, and no fund filed to close.
Key takeaways
Friday's paper from Amplify was three documents: two for this fund, and an N-14 to move the Fairlead Tactical Sector ETF TACK from Capitol Series Trust into Amplify ETF Trust at a 0.57% management fee, down from 0.59%, if its holders approve. No fund filed to close.
Amplify ETF Trust made the registration for the Amplify Top 10 Semiconductors ETF CPU effective on Friday, October 2. A buyer would own a concentrated semiconductors fund: the prospectus says it expects to invest in each company in a reference index of the top ten semiconductor names, and that in normal markets it would put at least 80% of its net assets in those companies, through stocks, receipts for foreign shares, or contracts such as swaps and options.
That is a different product from the large chip funds already trading. The VanEck Semiconductor ETF SMH holds 26 companies and charges 0.35%. The iShares Semiconductor ETF SOXX holds 30 and charges 0.33%. The State Street SPDR S&P Semiconductor ETF XSD holds 48 and charges 0.35%.
An effective registration lets the trust offer the shares. The prospectus says the fund intends to list on NYSE Arca, which is a plan, not a listing.
Amplify first filed to register the fund on Thursday, May 21, with the fee and the exchange left blank. That draft named Amplify Investments as adviser and Samsung Asset Management (New York) as the firm that would manage the investments, and Friday's summary prospectus keeps both.
The date moved twice before the fee was set. A filing on Friday, July 31 pushed the day the registration could take effect to Tuesday, August 18, the day four sibling funds went effective. A filing on Friday, September 11 pushed this one again, to Friday. The 0.49% in Friday's summary prospectus is the whole yearly fee: it is the management fee, other expenses are estimated at zero, and the table shows no waiver.
Three of those August funds, the quantum, space and robotics funds, charge the same 0.49%. The fourth, the Top 10 Asia Memory fund AHBM, the other chip fund in the line, charges 0.59%.
Two more of the seven funds Amplify filed in May are still waiting. Filings on Wednesday, September 30 set Friday, October 30 as the date the Nuclear and Defense Tech registrations could take effect.
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Frequently asked questions
What does the Amplify Top 10 Semiconductors ETF hold?
The prospectus says it expects to invest in each company in a reference index of the top ten semiconductor names, and that in normal markets it would put at least 80% of its net assets in those companies.
Is the fund listed yet?
The prospectus says the fund intends to list on NYSE Arca, which is a plan, not a listing.
What does the 0.49% cover?
The 0.49% in Friday's summary prospectus is the whole yearly fee: it is the management fee, other expenses are estimated at zero, and the table shows no waiver.
Who manages the investments?
The May draft named Amplify Investments as adviser and Samsung Asset Management (New York) as the firm that would manage the investments, and Friday's summary prospectus keeps both.
