CrowdBureau Peer-to-Peer Lending & Crowdfunding ETF

THE INVESTMENT CASE FOR ALTERNATIVE FINANCING METHODS

Advances in technology and financial regulations have created a fast-growing category of lenders that are attempting to disrupt traditional banking around the globe: publicly traded peer-to-peer lending platforms. These companies operate online lending marketplaces for both consumers and small- to medium-sized businesses. Learn more below about this market segment and discover reasons to consider an investment in a basket of peer-to-peer (P2P) lending and crowdfunding stocks.

GROWTH OF PEER-TO-PEER LENDING PLATFORMS

1

2

ACCESS TO CAPITAL FOR BUSINESSES & CONSUMERS WORLDWIDE

LENDETF.comAmplify

ETFs

51.3% 3.3 BILLIONANNUAL GROWTH OF PEER-TO-PEER LENDING PLATFORMS IN THE U.S. BETWEEN 2013-2018.1

1IBIS World, Sept 2018 2 World Bank Global Findex Database 2017, Gallup 3eMarketer, April 2019

TOTAL REVENUE OF PEER-TO-PEER LENDING PLATFORMS IN THE U.S., 2018.1

LEND

With 1.7 billion unbanked people globally, peer-to-peer lending platforms may provide the opportunity for greater financial inclusion. Also, 2/3 of unbanked adults have a mobile phone, further representing the opportunity.2

1.7 BILLION

UNBANKED

100 million

110 million

120 million

130 million

140 million

150 million

160 million

170 million

2011 2012 2013 2014 2015 2016 2017 2018 2019

45%

48%

51%

54%

56%

58%

60%61%

63%

POTENTIAL DISRUPTION OF THE BANKING SECTOR

Utilizing online applications and sophisticated algorithms to assess risk and price loans, peer-to-peer lending platforms seek to provide a more convenient and competitively priced offering versus traditional banks.

HOW MIGHT LEND FIT WITHIN A PORTFOLIO?• General growth or thematic allocation • Portfolio diversifier, as this market segment has little ownership across the ETF industry • Positioned for potential disruption of traditional financial or banking exposure • Diversified alternative to owning just one or two stocks in the market segment

HOW PEER-TO-PEER LENDING WORKSPeer-to-peer lending is the practice of lending money to businesses and individuals through online services that match lenders with borrowers. Crowdfunding is an umbrella term generally referring to the financing method, typically internet-based, by which capital is raised through the solicitation of small individual investments or contributions from a large number of persons, entities or institutions that lend money directly or indirectly to businesses or consumers.

Let’s look at the primary differences between the traditional bank lending model and the P2P lending model.

Bank Customers

Deposits

Traditional Bank(lender/underwriter)

Paperwork/Loan

Paperwork/Loan

Consumer

Small Business

BORROWERS

TRA

DIT

ION

AL

BAN

KIN

G M

OD

EL

Lenders/Investors

P2P Lending Platform

Paperwork/Loan

Paperwork/Loan

Consumer

Small Business

BORROWERS

Lenders/Investors

Lenders/Investors

Partner Bank

PEER

-TO

-PEE

R LE

ND

ING

MO

DEL

In contrast to the traditional banks, the peer-to-peer lending platforms do not lend their own money, but rather match borrowers with investors/lenders. Typical peer to peer platform loans range in purpose from debt consolidation to business financings, as well as homeowner and auto loans

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in Amplify Funds statutory and summary prospectus, which may be obtained above or by calling 855-267-3837, or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.

Holdings and allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Click here for holdings.

Investments in foreign securities involve greater volatility and political, economic, and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The Fund’s return may not match or achieve a high degree of correlation with the return of the underlying Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index. Investments in small and mid-cap companies may involve additional risks such as limited liquidity and greater volatility than large-cap companies. Investments in peer-to-peer lending will not typically be guaranteed or insured by any third-party and will not typically be backed by any governmental authority. Prospective borrowers supply a variety of information regarding the purpose of the loan, income, occupation and employment status (as applicable) to the lending platforms. As a general matter, platforms do not verify the majority of this information, which may be incomplete, inaccurate, false or misleading. Prospective borrowers may misrepresent any of the information they provide to the platforms, including their intentions for the use of the loan proceeds. The platforms in which the Fund may invest may have a higher risk profile and be more volatile than companies engaged in lines of business with a longer, established history and such investments should be viewed as longer term investments. Any increase in default rates on a platform’s peer-to-peer loans could adversely affect the platform’s profitability and, therefore, the Fund’s investments in the platform. As the use of Internet technology has become more prevalent in the course of business, the Fund has become more susceptible to potential operational risks through breaches in cyber security. Peer-to-peer loans are originated and documented in electronic form and there are generally no tangible written documents evidencing such loans or any payments owed thereon. As such, the crowdfunding ecosystem is susceptible to risks associated with such electronic systems. The platforms in which the Fund may invest may have a higher risk profile and be more volatile than companies engaged in lines of business with a longer, established history and such investments should be viewed as longer term investments. Many of the peer-to-peer lending platforms, and investment crowdfunding in general, are in the early stages of development and have a limited operating history. As a result, there is limited historical data regarding the performance of peer-to-peer lending and the long-term outlook of the industry is uncertain.

The CrowdBureau• Peer-to-Peer Lending and Equity Crowdfunding Index is a rules-based stock index owned, developed and maintained by Crowd Bureau Corporation (“CrowdBureau” or the “Index Provider”) designed to provide exposure to the U.S.-listed equity securities of companies comprising the “crowdfunding ecosystem:” “Crowdfunding” is an umbrella term generally referring to the financing method, typically internet-based, by which capital is raised through the solicitation of small individual investments or contributions from a large number of persons, entities or institutions that lend money directly or indirectly to businesses or consumers.

Amplify Investments LLC is the Investment Adviser to the Fund, and Penserra Capital Management, LLC serves as the Investment Sub-Adviser.

Amplify ETFs are distributed by Foreside Fund Services, LLC

QUESTIONS? Visit AmplifyETFs.com/LEND

ONLINE: AmplifyETFs.com EMAIL: info@AmplifyETFs.com PHONE: 855-267-3837 | (855-AMP-ETFS)

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CONSUMER BENEFITS OF P2P LENDING PLATFORMS • Convenience: simplified and streamlined process utilizing online platforms • Selection: multiple loan offers and various types of loans from multiple lenders • Competitive Pricing: P2P lenders seek to deliver lower interest rate loan options than other alternatives

TAP INTO THIS TREND WITH LEND AMPLIFY CROWDBUREAU PEER-TO-PEER LENDING & CROWDFUNDING ETF LEND seeks investment results that generally correspond to the CrowdBureau® Peer-to-Peer (P2P) Lending & Equity Crowdfunding Index (the Index). The Index is comprised of companies that 1) operate the platforms that facilitate P2P lending and investment-based crowdfunding, and 2) provide the technology & software that enable the operation of these platforms.

LEND offers access to a diverse group of global companies providing solutions for capital needs. CrowdBureau (Index Provider) brings expertise and thought leadership to the P2P lending and equity crowdfunding industry