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.
Amplify CWP Enhanced Dividend Income ETF offers a diverse holdings exposure while implementing a covered call strategy that allows for higher income generation. DIVO offers a 4.4% dividend yield, with distributions being paid out on a monthly basis. The ETF maintains a diverse portfolio with a focus on large-cap stocks in the financial, healthcare, and tech sectors, reducing sector-specific risks.
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.
DIVO is an actively managed ETF focusing on high-quality large-cap companies with a history of dividend growth and a covered call strategy. The fund's simple and transparent approach to portfolio construction, along with its impressive historic returns and low volatility, make it attractive. With an attractive valuation, high dividend yield, and potential for capital rotation, DIVO is positioned well for market changes and Fed rate cuts.
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.