Income and Capital appreciation are the two aims of The Amplify CWP Enhanced Dividend Income ETF (DIVO)

 

The Amplify CWP Enhanced Dividend Income ETF (DIVO) is an actively managed exchange-traded fund designed to provide investors with a combination of current income and capital appreciation. It achieves this through a strategic blend of high-quality, dividend-paying U.S. equities and a tactical covered call options strategy.Amplify ETFs

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📌 Fund Overview

• Inception Date: December 13, 2016

• Expense Ratio: 0.56%

• Assets Under Management: Approximately $4.35 billion

• Management Style: Active

• Primary Objective: Current income

• Secondary Objective: Capital appreciation

• Amplify ETFsBarron's+12Dividend.com+12Investopedia+12Kiplinger+5U.S. News Money+5FT Markets+5ETF Database+22StockAnalysis+22MarketWatch+22

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💰 Income & Yield

• Dividend Yield: Approximately 4.78% as of June 2, 2025

• Annual Dividend: $1.96 per share

• Distribution Frequency: Monthly

• Recent Payout: $0.165 per share on May 30, 2025Amplify ETFs+2StockAnalysis+2Seeking Alpha+2ETF DatabaseTipRanks

DIVO's income is derived from dividends of its underlying equity holdings and premiums collected from writing covered call options. This combination aims to provide a steady income stream for investors.

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📊 Performance Snapshot

• 1-Year Return: +12.27%

• 3-Year Return: +9.76%

• 5-Year Return: +11.22%

• Since Inception: +11.89%YCharts+8Yahoo Finance+8Dividend.com+8Amplify ETFs

These returns reflect DIVO's strategy of balancing income generation with potential for capital growth, making it appealing to investors seeking a blend of both.

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🧠 Investment Strategy

DIVO focuses on investing in high-quality, large-cap U.S. companies with a history of dividend and earnings growth. The fund's sub-adviser, Capital Wealth Planning (CWP), employs a tactical covered call strategy, writing call options on individual stocks within the portfolio when market conditions are favorable. This approach aims to enhance income without significantly sacrificing upside potential.Morningstar+2Amplify ETFs+2MarketWatch+2

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🏢 Top Holdings (as of May 29, 2025)

Company	Ticker	Weight
Invesco Government & Agency Portfolio	AGPXX	8.04%
Visa Inc.	V	5.23%
IBM	IBM	4.99%
CME Group Inc.	CME	4.98%
The Home Depot, Inc.	HD	4.93%
JPMorgan Chase & Co.	JPM	4.89%
The Goldman Sachs Group, Inc.	GS	4.82%
American Express Company	AXP	4.55%
Microsoft Corporation	MSFT	4.53%
Honeywell International Inc.	HON	4.41%

These holdings reflect DIVO's emphasis on financially robust companies across various sectors.

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🧭 Suitability

DIVO may be suitable for investors seeking:

• Consistent monthly income

• Exposure to high-quality, dividend-paying U.S. equities

• A tactical approach to covered call writing

• Potential for capital appreciation alongside incomeAmplify ETFs

However, investors should be aware that the fund's use of covered calls can limit upside potential in strongly bullish markets. Additionally, the fund's performance is subject to market risks associated with its equity holdings.