The AdvisorShares Peritus High Yield ETF (HYLD) is switching from the AdvisorShares Trust to the Amplify ETF Trust, which is sponsored by Amplify ETFs.
Pending approval by HYLD shareholders and the Amplify ETF Trust Fund Board, this is expected to become effective in the second quarter of 2018.
HYLD is managed by Santa Barbara, California-based Peritus Asset Management, a value-based active credit manager that specialises in fixed income opportunities in the corporate bond and loan markets with a focus on the non-investment grade asset class. Peritus will continue to manage HYLD after this transition. The change in ETF Trusts will still ensure that normal business will remain intact for HYLD, not affecting the ETF’s investment approach and fund operations during this transition. This new organisational plan provides a unique opportunity that all involved parties believe serves in the best interests of HYLD shareholders, including a new platform to highlight HYLD’s remarkable income story and strong emergence from a challenging high yield environment.
“We’re excited about this opportunity to work with AdvisorShares on this endeavour,” says Christian Magoon, chief executive officer of Amplify ETFs. “We believe the addition of HYLD to our expanding ETF suite delivers attractive opportunities for both significant growth and to enhance our income-focused offerings.”
“HYLD was among our firm’s early offerings and helped spark a wave of innovation in becoming the first actively managed, high yield ETF,” adds Noah Hamman, chief executive officer of AdvisorShares. “We tremendously appreciate all the support that Peritus has provided as a valued partner in telling the actively managed ETF story to an ever-growing audience.”
HYLD seeks to provide a high, tangible current income stream that is distributed monthly, which can help meet investor income goals as part of a diversified portfolio. As exhibited below, HYLD has consistently demonstrated that its investment strategy pays higher annual dividends versus both annual ETF and mutual fund averages in Morningstar’s High Yield Bond category.