Amplify HYG High Yield 10% Target Income ETF (HYGM)

The Amplify HYG High Yield 10% Target Income ETF (HYGM) is an actively managed exchange-traded fund from Amplify ETFs that seeks to generate an annualized level of income of around 10%, paid monthly, from a high-yield bond portfolio.

The fund holds shares of the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), which owns a broad basket of U.S. dollar high-yield corporate bonds, and writes call options on that position to collect option premium. The premium supplements the interest income from the bonds.

The covered call overlay limits the fund's participation in price gains of HYG, while it remains exposed to declines in high-yield bond prices. HYGM is part of Amplify's Target Income series of option-based funds.