New ETFs offer monthly income strategies tied to Meta and AMD stocks
Purpose Investments Inc. has announced the addition of two new single-stock ETFs to its Yield Shares by Purpose suite: the Meta (META) Yield Shares Purpose ETF (ticker: YMET) and the AMD (AMD) Yield Shares Purpose ETF (ticker: YAMD).
These ETFs respond to increasing client interest in funds that provide both income and growth potential, reflecting Purpose Investments’ aim to offer options for investors seeking diversified strategies.
These ETFs bring several features designed to meet investors’ needs. With a focus on monthly distributions, investors can benefit from regular income, which includes both dividends from the underlying stock and option premiums.
The structure also allows investors to participate in potential long-term growth, specifically with Meta and AMD, companies noted for their impact in the technology sector.
Additionally, these ETFs employ a covered call strategy, aiming to reduce volatility and create income in a tax-efficient manner, predominantly through capital gains.
Currency hedging provides Canadian investors with US stock exposure while minimizing risks related to currency fluctuations, as investments are made in Canadian dollars.
Yield Shares ETFs cater to a growing demand for monthly income while offering the opportunity to tap into the growth of technology companies leading in critical areas.
Meta, as a frontrunner in social interaction and virtual economies, is positioned at the forefront of digital transformation, advancing the metaverse and AI-powered tools for connectivity.
AMD, recognized for its high-performance computing technology, is driving advancements in artificial intelligence and cloud technology with its cutting-edge processors, critical in various fields from healthcare to finance.
The Yield Shares ETFs follow a strategy focused on holding a single stock (either Meta or AMD), employing a covered call approach, and using moderate leverage to achieve monthly tax-efficient income.
This structure aims to combine growth – tied to the underlying stock’s performance – with consistent income, appealing to investors interested in both capital appreciation and income.
Since the 2022 launch of Yield Shares by Purpose, the funds have grown in popularity, particularly among investors seeking monthly distributions alongside exposure to leading global companies.
According to Vlad Tasevski, head of Asset Management, “Since launching in 2022, Yield Shares by Purpose have become a popular choice for investors seeking monthly distributions while gaining exposure to the world’s leading companies.”
He added that the strong client demand has led to an expansion of the Yield Shares suite, offering investors a unique opportunity to access Meta’s and AMD’s growth potential alongside monthly tax-efficient distributions.
Tasevski emphasized the significance of these additions, noting, “These companies are leaders in key growth sectors driving global innovation.”
He described Meta as reshaping social interaction, virtual reality, and digital economies, laying the groundwork for the digital future, while AMD, as a leader in semiconductor technology, powers advancements in AI and cloud infrastructure.
According to Tasevski, the new Yield Shares deliver a blend of growth and yield potential, enabling investors to leverage the growth momentum of these industry leaders.
