Eyeing ETF flows ahead of this week’s Fed meeting

Ahead of a hard-to-predict Fed meeting, Amplify ETFs CEO Christian Magoon discusses fixed-income ETF strategies. He recommends covered call bond ETFs like LCDM to capture rich option premiums and hedge rate-cut uncertainty, and highlights the SSOFR ETF as a way to earn attractive overnight yields while waiting out volatility. - Market prices about a 35% chance of a rate cut this week, with an 80% chance next month - Covered call bond ETFs like LCDM target 12% yields by combining option income and interest - These strategies can deliver 2-3x the underlying ETF yield and hedge against rate uncertainty - Amplify offers covered call strategies on Treasuries (TLT), investment grade (LQD), and high yield (HYG) - The SSOFR ETF gives access to the institutional SOFR overnight rate, yielding 3.6% - Both approaches aim to generate income while navigating bond-market volatility