Amplify ETFs launched the Amplify Samsung SOFR ETF (NYSE Arca: SOF) in partnership with Samsung Asset Management. SOF is also an actively managed ETF aimed at providing current monthly income and reducing risk exposure.
Additionally, SOF seeks to deliver the monthly income and total return of the Secured Overnight Financing Rate (SOFR) after fees and expenses. It’s designed to deliver higher monthly yield potential and total return over cash without materially increasing duration risk. Samsung AM serves as the sub-adviser.
See more: Amplify’s Christian Magoon on Purchase of ETFMG’s ETFs
Targeting Higher Returns Amid Market Uncertainty
Amplify ETFs CEO Christian Magoon noted that investors are shifting to income-producing investments amid market uncertainty for higher returns. He added: “it is a great honor to collaborate with Samsung AM on their first ETF initiative in the U.S.”
Samsung AM CEO Bongkyun Suh said he was proud to launch his firm’s first U.S.-listed ETF with Amplify. Samsung AM was the first to list an overnight interest income ETF in Korea. It also manages roughly $5.8 billion in short-term interest income ETFs.
SOFR replaced LIBOR in June 2023 as the standard benchmark for interest rates for dollar-denominated derivatives and loans. Additionally, SOFR has proven a more transparent and reliable benchmark for managing interest rate risk and borrowing costs in the U.S. The SOFR was 5.32% as of November 8.
Focused on Income
Furthermore, Magoon told NYSE’s Judy Shaw at Exchange 2023 that Amplify ETFs was “really focused on income this year.”
“I know rates are rising, and people are getting a little bit more in their savings account,” Magoon said. “But there’s so much more you can do on the ETF side to really boost your income for above-average returns over time.”
SOF has an expense ratio of 0.20%.
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