Retirement should not feel like a monthly cliffhanger, but if you carried two car loans across the finish line, it might.
Income investors who bought the Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) got what they paid for: a US large-cap quality portfolio wrapped in a tactical
DIVO markets itself as an income fund that softens drawdowns. That comfort carries a price the fact sheet does not spotlight.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 43,160 | $1.71M | $2.02M | $318,500.76 | 18.68% |
Curtis Ellergodt Rothschild Investment LLC | 11,763 | $458,505.41 | $563,800.59 | $105,295.18 | 22.96% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 326,017 | $14.9M | $15.65M | $749,846.01 | 5.03% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 44,627 | $1.83M | $2.15M | $320,050.76 | 17.52% |
| RS Ramu Singh CALTON & ASSOCIATES Inc. | 4,999 | $228,454.3 | $239,952 | $11,497.7 | 5.03% |
| ARCA Exchange | US Country |
The described fund primarily focuses on investing in dividend-paying U.S. exchange-traded equity securities, dedicating at least 80% of its net assets to such investments. Alongside this, the fund employs a strategic approach by opportunistically utilizing an option strategy, which includes writing (selling) U.S. exchange-traded covered call options on the equity securities it holds. This method aims to generate additional income or hedge against market volatility. It's important to note that this fund is categorized as non-diversified, meaning it may invest more heavily in fewer sectors or securities, potentially increasing its risk and volatility compared to diversified funds.
This refers to the core investment of the fund, targeting equity securities listed on U.S. exchanges that offer dividends. These investments aim to provide income through dividends as well as potential capital appreciation. By focusing on dividend-paying stocks, the fund seeks to attract investors interested in regular income generation alongside potential growth.
As a part of its strategic operations, the fund engages in an option strategy that involves writing (or selling) covered call options on the U.S. exchange-traded equity securities it holds. This approach can generate additional income for the fund through option premiums received. It can also offer some level of protection against downside risk in stock prices. Covered calls involve selling the right to buy a security at a specified price within a certain period, which can cap the upside potential of the security involved but provide immediate income.