On Wednesday, Amplify ETFs announced the launch of its newest ETF, the Amplify Thematic All-Stars ETF (MVPS), per a press release.
MVPS is a thematic ETF that seeks to capture the top thematic investments within ETFs all in one place, making it a one-stop-shop for investors looking for the best-in-class performers across given themes.
MVPS tracks the ETF All-Stars Thematic Composite Index, created and run by ETF Action, a research and technology firm. The benchmark seeks to identify “consensus” stocks within a set of themes, based on stocks’ prevalence of inclusion among U.S.-based thematic ETFs and the total market value invested in them.
“The proliferation of thematic ETFs has left investors with a series of questions,” said Christian Magoon, CEO of Amplify ETFs in the press release. “Which themes should I own? How much should I allocate to each theme? How do I focus on consensus, pure play stocks representing a theme? When should I rebalance my exposure? MVPS helps address these questions, and provides a convenient solution for investors who want to own themes without the hands-on research needed to identify thematic opportunities.”
Investing in Themes with MVPS
MVPS uses ETF Action’s thematic classification system to define several segments: disruptive technology, evolving consumer, fintech, healthcare innovation, industrial revolution, sustainability, and a multi-theme category.
The index defines a set of thematic ETFs within each segment, then seeks the consensus stocks—that is, the stocks most widely held by those ETFs, both in prevalence and market value held.
“The ETF All-Stars Thematic Composite Index is the first-ever strategy to leverage the growth and transparency of thematic ETFs to establish a consensus view on which companies best align with innovative trends across the world economy,” said Mike Akins, CEO & Founding Partner of ETF Action.
The index selects the top 75% of companies by their ownership-adjusted market value (OAMV) within each theme. These companies are then weighted based on their OAMV, with no company representing more than 5% of the Index.
MVPS’s top 3 sectors as of launch are software with a 21.72% allocation, semiconductors and equipment with a 16.81% allocation, and IT services with a 12.92% allocation. The fund currently has 164 holdings.
MVPS carries an expense ratio of 0.49%.
Amplify ETFs, sponsored by Amplify Investments, believes that ETFs offer transparency, flexibility, and efficiency by their very nature. As of end of June, Amplify ETFs had over $4.6 billion in assets within the ETFs that it offers.
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