Amplify ETFs’ Black Swan goes international

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Christian Magoon, Amplify

Following up on what now appears to have been a timely launch of its first BlackSwan ETF in 2018, Amplify ETFs has launched the international version, the Amplify BlackSwan ISWN ETF (ISWN).

The first BlackSwan ETF from Amplify, the Amplify BlackSwan Growth & Treasury Core ETF (SWAN), has raised close to USD1 billion in assets and offers exposure to the S&P 500, while this new international version provides exposure to the MSCI EAFE. ISWN is an index-based ETF that seeks to hedge against significant losses while still participating in the uncapped upside of international equities through investing in a combination of two low-correlated assets: US Treasury securities and long-term options (LEAPS) on the MSCI EAFE.

ISWN seeks investment results that correspond to the S-Network International BlackSwan Index. Approximately 90 per cent of ISWN is invested in US Treasury securities with a targeted duration of the 10-year note, and 10 per cent is invested in EFA ETF LEAP options in the form of in-the-money calls.

“The first BlackSwan ETF SWAN has been quite successful for us,” says Christian Magoon, CEO of Amplify. He reports that when the S&P 500 was down just over 30 per cent in 2020 at the ‘Covid low’, SWAN was down 5 per cent.

“SWAN experienced attractive risk-adjusted returns versus the S&P 500 and allowed investors to remain invested in stocks while managing risk. Unfortunately, many investors were scared out of stocks in the Covid19 lows and missed the bounce afterwards.”

Responding to demand for an international version, ISWN has launched with USD26 million in assets within its first week. “We are excited to deliver another tool for investors to manage risk at with a competitive price point of 49 basis points,” Magoon says.


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