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Dividend
As the ETF landscape continues to expand, more and more firms are crossing over significant AUM thresholds. That includes some now-veteran shops with strong, growing rosters, like Amplify ETFs.
DIVO's tactical covered call strategy offers a balance of income and appreciation, outperforming many high-yielding call option ETFs with a 13.23% YTD increase. DIVO's concentrated portfolio of 44 quality holdings, including AAPL and MSFT, adds diversification and potential for continued outperformance in a lower-rate environment. Despite risks of volatility and capped upside, DIVO's hybrid approach attracts investors seeking both income and capital appreciation, rivaling risk-free assets.
I'm giving the Amplify CWP Enhanced Dividend Income ETF a try because I believe its dividend is sustainable. I'm not so sure about some similar ETFs.
DIVO invests in high-quality U.S. equities and sells covered calls on some of its holdings. The result is an incredibly well-rounded fund, with good dividends, long-term returns, and outperformance during bear markets. It does underperform during bull markets, and should somewhat underperform long term.
Exchange-traded funds are a simple way to build a portfolio, but they don't have to be simple investments. Schwab U.S. Dividend Equity ETF is focused on owning a diversified, high-quality portfolio of high-yield stocks.
On Thursday, Amplify ETFs bolstered its fund library with the launch of the Amplify CWP Growth & Income ETF (QDVO). QDVO's strategy focuses primarily on capital appreciation, with a secondary goal of seeking current income.
Investors can generate income from their portfolios in multiple ways, including selling covered calls. Managing an options portfolio can be complex.
Investing environment is volatile, making capital allocation difficult. Traditional investing strategies are turning to alternative options like covered call funds. Amplify CWP Enhanced Dividend Income ETF has performed well since its inception in 2016.
The Amplify CWP Enhanced Dividend Income ETF provides a unique strategy for generating both income and capital appreciation. DIVO has exceeded the performance of bond funds in the last 5 years, delivering a total return of 60.12%. With decreasing interest rates, DIVO could become a favored option for investors looking for assets that produce income.
Since my article was published in mid-2023, the Amplify CWP Enhanced Dividend Income ETF has performed similarly to other dividend-focused investments. However, as I mentioned in the article, DIVO has not been able to outperform the S&P 500 due to its covered call strategy. With the recent increase in market volatility and the rise in the VIX, DIVO now has more potential to generate higher cash flows.
FAQ
- What is DIVO ETF?
- Does DIVO pay dividends?
- What stocks are in DIVO ETF?
- What is the current assets under management for DIVO?
- What is DIVO average volume?
- What is DIVO expense ratio?
- What is DIVO inception date?