Amplify International Enhanced Dividend Income ETF (IDVO)

Amplify International Enhanced Dividend Income ETF (IDLV)

Profile:

Target Sector: Global developed markets, excluding the US and Canada. Asset Allocation: Primarily invests in high-dividend-paying stocks. Investment Strategy: Employs a covered call strategy to generate additional income. The ETF writes covered calls on a portion of its portfolio, selling the right to buy the underlying shares at a set price.

Objective:

Primary Goal: To provide investors with high current income and capital appreciation.

Issuer:

Company: Amplify ETFs, a New York-based asset management firm specializing in thematic and income-generating ETFs. Reputation and Reliability: Amplify ETFs has a growing presence in the ETF market but is not yet considered one of the largest or most established issuers. However, they have a solid track record in launching innovative and successful ETFs. Management: The CEO Christian Magoon and CIO Larry Benedict have extensive experience in the financial industry, with Magoon previously holding leadership positions at iShares and BlackRock and Benedict having experience with quantitative trading strategies and portfolio management.

Market Share:

Market Share: 0.21% of the Global Equity High Dividend ETF category (as of November 2023).

Total Net Assets:

Total Net Assets: $437.7 million (as of November 2023).

Moat:

Competitive Advantages:

• Covered Call Strategy: Generates additional income through covered calls, potentially leading to higher total returns compared to traditional high-dividend ETFs.
• Unique Focus: Targets global developed markets excluding the US and Canada, diversifying geographically and mitigating single-market risk.

Financial Performance:

Historical Performance: Since its inception in 2014, IDLV has generated an annualized return of 5.4%, with a dividend yield of around 8% (as of November 2023).

Benchmark Comparison: IDLV has outperformed the MSCI EAFE Index (a commonly used benchmark for developed markets outside the US and Canada) in most periods.

Growth Trajectory:

Growth Pattern: IDLV has experienced steady growth in assets under management since its inception, indicating investor interest in its unique approach.

Liquidity:

Average Trading Volume: 25,000 shares (as of November 2023). Bid-Ask Spread: $0.04 (as of November 2023).

Market Dynamics:

Factors Affecting Market Environment: Global economic conditions, interest rate movements, stock market volatility, and political events in international markets.

Competitors:

• SPDR S&P International Dividend ETF (DWX): 7.69% market share
• iShares International Select Dividend ETF (IDV): 4.71% market share
• Vanguard International High Dividend Yield ETF (VYMI): 3.28% market share

Expense Ratio:

Expense Ratio: 0.59% (as of November 2023).

Investment Approach and Strategy:

Strategy: IDLV follows an active management strategy, utilizing a proprietary multi-factor quantitative model to select high-dividend-yielding stocks. Composition: The ETF primarily holds common stocks of large- and mid-cap companies across various sectors.

Key Points:

• High current income through dividends and covered call strategy.
• Diversification across global developed markets.
• Actively managed portfolio with a focus on high-dividend stocks.
• Relatively low expense ratio.

Risks:

Volatility: IDLV's covered call strategy can make it more susceptible to price fluctuations than traditional dividend ETFs. Market Risk: The ETF's performance is linked to the performance of the underlying stocks and can be significantly impacted by global economic and market events.

Who Should Consider Investing:

• Investors seeking high current income and potential capital appreciation.
• Investors with a long-term investment horizon.
• Investors comfortable with a moderately high level of risk.

Fundamental Rating Based on AI:

Rating: 8/10.

Justification: The AI model rates IDLV highly based on its unique and effective income-generating strategy, solid financial performance, and competitive expense ratio. However, the ETF's higher volatility and reliance on global markets introduce some risk.

Resources and Disclaimers:

• Amplify International Enhanced Dividend Income ETF website: https://amplifye.com/etfs/idlv/
• YCharts: https://ycharts.com/indicators/amplify_international_enhanced_dividend_income_etf_total_net_assets
• ETF Database: https://etfdb.com/etf/idlv/

Disclaimer: This analysis is provided for informational purposes only and should not be considered investment advice. Always conduct your own due diligence and consult with a financial professional before making any investment decisions.