SCHD is my overall favorite dividend growth ETF. However, DIVO offers several qualities that seek to improve on SCHD. I share why DIVO may make more sense than SCHD for many investors, as well as when it does not make sense.
The DIVO and SPHD ETFs recently raised their dividend payouts multiple times. Moreover, DIVO and SPHD enable diversification and can help to reduce share-price volatility.
DIVO offers balances steady yield, capital appreciation, and risk management—ideal for my income portfolio preferences. Active management and a focused portfolio allow DIVO to adapt sector exposure and holdings to current market conditions, supporting consistent performance. The fund's covered call strategy boosts yield without eroding NAV.
Most investors generate passive income from the stock market through dividend stocks and ETFs.
The DIVO ETF holds a variety of stable large-cap names pays out cash distributions monthly.
In response to the rising demand for natural gas, Amplify has expanded its ETF lineup with the launch of the Amplify Samsung U.S. Natural Gas Infrastructure ETF (USNG) on the NYSE Arca. The new fund provides exposure to 20–25 U.S. companies in the natural gas industry.
DIVO invests in high-quality U.S. equities, and writes covered calls on a portion of its holdings. It yields 4.8%, has moderate equity upside, strong total returns. DIVO is an incredibly well-rounded ETF, and might be of particular interest to income investors, as well as those concerned about recent market volatility.
There is no single way to invest for income, and as such, there is no single exchange-traded fund (ETF) for income investors to buy. If you are trying to build a diverse income stream, in fact, you'll probably want to buy several ETFs.
Amplify CWP Enhanced Dividend Income ETF's covered call strategy and high-quality dividend stocks provide consistent income and capital preservation, outperforming the S&P 500 during market declines. DIVO's resilience is evident, with a positive YTD return amid market declines and smaller losses compared to SPY and QQQ during 2022. The fund's focused portfolio and sector diversity, particularly in financials, industrials, and healthcare, contribute to its stability and performance. However, DIVO lacks a sizeable technology allocation.
DIVO's focus on high-quality, dividend-oriented stocks and active management makes it a resilient choice in the volatile 2025 market. The ETF's diverse sector allocation and option overlay strategy enhance its income potential, offering a steady 4.78% yield. Despite some distributions coming from the return on capital, DIVO's performance and adaptability justify a buy rating.
The current economic slowdown, marked by layoffs and falling consumer spending, is expected to increase market volatility, making investing more challenging yet opportunistic. Covered-call funds, which benefit from increased volatility, have evolved significantly and offer diverse income options for investors. DIVO, a covered-call ETF, selectively sells out-of-the-money call options on 20% of its holdings, aiming for 2-4% income from these strategies.
When I started investing, my investment choices were pretty limited. Today, with the advent of exchange-traded funds (ETFs), there is more that investors can do, and the costs are attractively cheap.