Riding the Volatility with AMAX: High Yield and Hedged Opportunities in a Chaotic Market

The markets are a rollercoaster these days—tariffs, rate cuts, geopolitical storms—it's enough to make even the bravest investor want to hide under a mattress. But what if I told you there's an ETF that's designed to thrive in this chaos, offering a generous yield while shielding you from the worst of the swings? Let me introduce you to the RH Hedged Multi-Asset Income ETF (AMAX)—a fund that's flying under the radar but packing serious punch for income seekers.

Dividend Volatility? Yes. But the Trend is Upward—and That's What Matters

Let's start with the headline: AMAX's forward dividend yield is now 8.10%, a significant jump from its trailing 12-month yield of 6.74% as of June 2025. That's not just a number—it's a promise of cash flow in an era where safe income is hard to find. But here's the catch: this fund isn't for the faint of heart. Its dividend history is a wild ride. In late 2023, it spiked to a jaw-dropping 13.66%, only to drop to 8.06% by early 2024. Yet, the last three months have seen a rebound, with the June 30 dividend hitting $0.07 per share, up from $0.0515 in March.

Why the swings? Because AMAX isn't just a passive income tracker—it's an actively managed beast. Its managers tweak payouts based on market conditions, leveraging the fund's diversified holdings to protect yield. The recent uptick suggests they're seeing green shoots in sectors like tech and commodities, which the fund is betting on.

The Structural Edge: Diversification Done Right

AMAX isn't your typical bond or stock ETF. Its portfolio is a masterclass in hedging, with 19.58% in long-term Treasuries (TLT), 19.33% in the S&P 500 (SPY), and 18.46% in gold-covered calls (GLDI). Add in exposure to tech (QQQ), small caps (IWM), and even oil (USO), and you've got a fund that's everywhere and nowhere at the same time.

Here's the genius: Treasuries act as a shock absorber in equity selloffs, gold-covered calls generate steady premiums while capping downside, and the tech and commodity bets let the fund profit from cyclical upswings. The fund also holds 4.25% in cash, giving managers flexibility to pounce on dips.

Why Now is the Time to Take a Stance

Let's talk about the market. Q2 2025 is a mess: the Fed is stuck on pause, trade wars are heating up, and inflation is stubbornly sticky. Investors are fleeing growth stocks, with equity ETFs bleeding $14.92 billion in outflows. But here's where AMAX shines:

1. Active Management Wins: Active ETFs like AMAX outperformed passive peers this quarter, attracting $9.9 billion in inflows. Why? Because pros like AMAX's managers are navigating tariffs and sector rotations better than any index.
2. Defensive Gold & Bonds: With geopolitical risks spiking, gold ETFs like GLDI (a core AMAX holding) are up 19.46% YTD. Pair that with Treasuries, and you've got a shield against the next panic.
3. Commodity Upside: AMAX's 4.05% stake in oil (USO) and its tech ETFs (QQQ) let it capitalize on infrastructure spending and energy demand—a sweet spot as recession fears fade.

The Risks? Sure—but the Rewards Are Worth It

No free lunch here. AMAX's yield is not guaranteed—dividends could dip if the Fed hikes rates again or if gold tanks. Plus, its focus on active management means performance hinges on the team's bets paying off. And with a three-year dividend growth rate of -11.99%, some investors might worry about consistency.

But here's the kicker: volatility is the market's new normal. In this environment, a fund that's designed to zig when others zag is exactly what you need. The 8.10% yield isn't just a number—it's a lifeline for retirees or income hunters who can't afford to wait for calm seas.

Bottom Line: AMAX is a Volatility Hedge with a Yield Hook

If you're looking for an ETF that doesn't just follow the crowd but actually fights the noise, AMAX deserves a spot in your portfolio. Its mix of Treasuries, gold, and cyclical exposures gives it a rare blend of stability and upside.

Action Plan:
- Buy now if you can stomach short-term swings for long-term yield.
- Dollar-cost average if you're nervous—use dips to layer in.
- Pair it with cash reserves (like short-term bond ETFs) to balance risk.

This isn't a “set it and forget it” play. But in a market that's all over the place, AMAX is the kind of bold, yield-driven fund that can turn chaos into cash.

Disclosure: Always consult a financial advisor before making investment decisions. Past performance does not guarantee future results.