SWAN ETF

The Amplify BlackSwan Growth & Treasury Core ETF aims to hedge against market drops while allowing for potential stock market gains through a 90% Treasuries and 10% S&P 500 LEAP options mix. SWAN's unique allocation leverages the inverse relationship between Treasuries and equities, cushioning losses during downturns and increasing equity exposure as markets rise. Despite a poor performance in 2022 due to an unprecedented bear market in Treasuries, SWAN remains a compelling option for risk-adjusted returns across varying market conditions.

The world is shrouded in numerous uncertainties. S&P's macro outlook for the next 12 months is pessimistic, pointing to worsening trends in 4 out of 7 risk categories. Whether you are risk-averse or a risk-taker, you would do well to have a portion of your portfolio invested in companies that can let you sleep-well-at-night. I recommend a balanced approach to investing, including holding cash and investing in hard-to-go-bust companies with strong credit ratings, cash flows, and growth.

TORONTO , June 18, 2024 /PRNewswire/ - Black Swan Graphene Inc. ("Black Swan" or the "Company") (TSXV: SWAN) (OTCQB: BSWGF) (Frankfurt: R96) and Graphene Composites Ltd. ("GC"), a leading advanced materials engineering company, are pleased to announce having initiated a commercial partnership for the supply of Black Swan's graphene used in the fabrication of GC Shield® , a patented ballistic protection technology ("GC Sheilds").

The SWAN (Sleep Well At Night) strategy in the financial world usually means you invest in a strategy and not have to worry about it on a day-to-day basis. We do not consider investing in the S&P 500 or any other broad market index a swan strategy, for obvious reasons. We will describe our one such SWAN strategy that aims to provide high returns, low volatility, and decent income.

The Amplify BlackSwan Growth & Treasury Core ETF aims to hedge investor returns during unexpected market dislocations. The fund is composed of long-dated S&P 500 options and a ladder of treasury bonds. The fund has performed well in 2024, being up over 6%, outperforming the iShares Core U.S. Aggregate Bond ETF and providing an embedded hedge.

Amplify BlackSwan Growth & Treasury Core ETF has had a decent performance in 2024, up 4% YTD and 19% since October 2023. The Fund is a diversified stock-and-government bond fund that uses leverage to increase expected returns. While SWAN's losses are capped, there are still risks associated with a decline in the S&P 500 and treasury prices.

Amplify's SWAN was launched on November 6, 2018, meeting all expectations through the December 2018 market swoon, the market's 2019 recovery, and withstanding the 2020 Covid-19 crash. As previously warned, the Achilles heel of SWAN is market declines due to high inflation/rising interest rates, which is exactly what occurred in 2022 through Oct. 2023. With 10-year Treasury yields of almost 5%, inflationary pressures seemingly receding, and reduced recessionary fears, SWAN appears poised to protect against large market drawdowns due to non-inflationary factors.

The Amplify BlackSwan Growth & Treasury Core ETF has performed poorly, declining over 8% in total returns compared to the S&P 500's 5% drawdown. The SWAN ETF's strategy is based on historic negative correlations between stocks and bonds, but it fails to account for the possibility of positive correlation during certain market conditions. The SWAN ETF's poor performance is largely due to the declines in its portfolio of treasury bonds, which are negatively correlated to rising interest rates.

Consumer staple companies are considered "defensive" due to steady demand for their products during weak economic times as well as their ability to increase prices during inflationary times. The VDC ETF provides exposure to a diverse range of consumer staples companies - including those in the food, beverage, and household products industries. Investors can benefit from VDC's relatively low expense ratio (0.10%) and its attractive long-term performance track record: a 10-year average annual return of 9.4%.