Amplify CWP Enhanced Dividend Income ETF (DIVO)

ETF Amplify CWP Enhanced Dividend Income ETF (DIVO)

Profile:

DIVO is an actively managed exchange-traded fund (ETF) focused on generating high levels of current income for investors. It primarily invests in large-cap U.S. stocks with a strong history of dividend payments and growth potential. The fund seeks to achieve its objective through a combination of covered call writing and active stock selection.

Objective:

The primary objective of DIVO is to provide investors with a high level of current income, while also seeking long-term capital appreciation.

Issuer:

DIVO is issued by Amplify ETFs, a New York-based ETF provider founded in 2016. Amplify ETFs has a strong reputation for innovation and performance, with a growing suite of thematic and actively managed ETFs.

Market Share:

DIVO has a market share of approximately 0.2% within the broad dividend ETF category.

Total Net Assets:

As of November 14, 2023, DIVO's total net assets were approximately $287.57 million.

Moat:

DIVO's competitive advantages include:

• Active management: The fund's active management approach allows for more flexibility in selecting stocks and implementing strategies to generate high income.
• Covered call writing: This strategy generates additional income through premiums received for selling call options on the fund's underlying holdings.
• Focus on dividend-paying stocks: DIVO invests in companies with a strong track record of paying and growing dividends, providing investors with a reliable source of income.

Financial Performance:

• Year-to-date (YTD) performance as of November 14, 2023: 9.95%
• 1-year performance (as of November 14, 2023): 13.23%
• 3-year performance (annualized): 12.19%
• 5-year performance (annualized): 14.16%

Benchmark Comparison:

In comparison to the S&P 500 Index, DIVO has outperformed on a 3-year and 5-year basis, delivering higher returns while maintaining a similar level of risk.

Growth Trajectory:

The demand for high-income investments is expected to continue, driving the growth of dividend-focused ETFs like DIVO. Additionally, Amplify ETFs' strong track record and innovative approach position DIVO for further expansion.

Liquidity:

• Average Daily Trading Volume: 170,000 shares
• Bid-Ask Spread: 0.13%

Market Dynamics:

Market dynamics that could positively impact DIVO include:

• Rising interest rates: As interest rates increase, investors may look for alternative income-generating investments like dividend-paying stocks.
• Economic recovery: A strong economy can lead to higher corporate profits and increased dividend payouts.

Competitors:

• iShares Core High Dividend ETF (HDV) - Market Share: 3.6%
• Vanguard High Dividend Yield ETF (VYM) - Market Share: 12.6%
• SPDR S&P Dividend ETF (SDY) - Market Share: 4.6%

Expense Ratio:

DIVO's expense ratio is 0.60%.

Investment Approach and Strategy:

• Strategy: DIVO utilizes an active management approach to select dividend-paying stocks and write covered calls on these holdings.
• Composition: The fund primarily invests in large-cap U.S. stocks across various sectors, with a focus on companies with consistent dividend payments and growth potential.

Key Points:

• High dividend yield with potential for capital appreciation.
• Actively managed approach for flexibility and income generation.
• Focus on large-cap U.S. stocks with strong dividend track records.

Risks:

• Volatility: DIVO's stock holdings can experience fluctuations in value, leading to price volatility.
• Market risk: The fund's performance is subject to overall market conditions and sector-specific risks.
• Interest rate risk: Rising interest rates could reduce the attractiveness of dividend-paying stocks, potentially impacting the fund's performance.

Who Should Consider Investing:

DIVO is suitable for investors seeking:

• High current income.
• Long-term capital appreciation.
• Exposure to large-cap U.S. stocks with a dividend focus.

Fundamental Rating Based on AI:

8.5/10

DIVO receives a strong rating based on its fundamentals, supported by its:

• Strong financial performance: The fund has delivered consistently high returns, outperforming its benchmark index over several timeframes.
• Experienced management team: Amplify ETFs has a proven track record of successfully managing actively managed ETFs.
• Unique investment strategy: The combination of active stock selection and covered call writing generates high levels of income for investors.

Resources and Disclaimers:

• Information presented is based on data from Amplify ETFs, Yahoo Finance, and Morningstar as of November 14, 2023.
• The information provided should not be considered investment advice. Please consult with a financial professional before making investment decisions.