Amplify "Now Is the Time to Diversify Tech Stocks and Invest in High-Dividend ETFs"

US ETF Specialist Amplify CEO Holds Press Conference in Korea
"Need for Diversified Investment in US Tech Stocks and Interest in High Dividend ETFs"

"If you consider up to the first half of next year, now is the time to invest in technology stocks and high-dividend ETFs."

Christian Magoon, CEO of Amplify, said this on the 7th at a press conference held at the Korea Exchange in Yeouido, Seoul, together with partner Samsung Asset Management.

Amplify expects the quarterly year-over-year earnings per share (EPS) growth rate of the so-called M7 (Magnificent7), which includes Apple, Microsoft, Nvidia, Google, Amazon, Meta, and Tesla, to peak at 63% in Q4 2023 and then decline.

However, since the performance of technology sectors such as IT and telecommunications remains strong and growth is expected in the future, Magoon argued that it is better to avoid concentrated investment in M7 stocks and instead adopt a strategy of diversified investment in technology stocks.

Considering recent economic conditions, he anticipated a delay in the timing of the U.S. Federal Reserve's interest rate cuts. He explained that since the rate cut trend is expected to proceed gradually, it is necessary to prepare for a prolonged period of high interest rates.

CEO Magoon emphasized that companies with strong free cash flow can be expected to maintain stable stock prices by consistently paying dividends even amid a prolonged high interest rate environment, and mentioned the need to respond to uncertain markets with ETFs composed of such high-dividend stocks.

Meanwhile, analyzing historical stock price movements in U.S. presidential election years, Magoon stressed the importance of maintaining interest in stocks, noting that the stock market has shown an overwhelmingly high rate of upward trends during such years.

For the S&P 500, the rate of price increases was the highest at 83%, followed by Nasdaq at 77% and the Dow Jones Industrial Average at 74%. The average price increases in presidential election years were 11.6% for the S&P 500, 9.3% for Nasdaq, and 9.1% for the Dow Jones Industrial Average.

Samsung Asset Management began collaboration in April 2022 by acquiring a partial stake in Amplify. They localized Amplify’s mega-hit ETF products, the ‘BLOK ETF’ and ‘DIVO ETF’, for the Asian and Korean markets respectively. In July 2022, they listed the ‘Samsung Blockchain Technology ETF’ on the Hong Kong market, the first in Asia, and in September 2022, launched the ‘Samsung KODEX U.S. Dividend Premium Active ETF’ in the domestic market.

Additionally, in November last year, Samsung Asset Management replicated the product structure of the KODEX U.S. Dollar SOFR Rate Active ETF, the first of its kind in Korea, to list the Amplify Samsung SOFR ETF on the New York Stock Exchange, continuing their synergistic activities.

Magoon, CEO of Amplify, stated, “Through ongoing collaboration with Samsung Asset Management, we plan to continuously introduce innovative ETF products not only in Korea and Asia but also in the U.S., the home of ETFs,” and emphasized, “Amplify and Samsung Asset Management will pursue various initiatives to expand their presence as global advanced asset managers.”

This content was produced with the assistance of AI translation services.