Amplify LQD Investment Grade 12% Target Income ETF (LQDM)

Amplify LQD Investment Grade 12% Target Income ETF is an exchange-traded fund from Amplify ETFs. Its exposure is built around the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), a fund of U.S. dollar investment-grade corporate bonds.

As the name indicates, the fund pairs that bond exposure with an options strategy, typically selling call options, to generate additional premium income, with the goal of targeting an annual income level of about 12%. The target is an objective rather than a guarantee, and writing options can limit participation in price gains of the underlying bond exposure. Details of the options approach should be confirmed in the prospectus.