Amplify International Enhanced Dividend Income ETF (IDVO)

Amplify International Enhanced Dividend Income ETF (PID)

Profile: The Amplify International Enhanced Dividend Income ETF (PID) is an actively managed exchange-traded fund that invests in high-dividend-paying stocks from developed and emerging markets outside of the United States. The ETF utilizes a multi-factor approach that combines quantitative and qualitative analysis to select stocks with strong fundamentals and dividend growth potential. PID has a current expense ratio of 0.65%.

Objective: PID aims to provide investors with a high level of current income through dividend payments and capital appreciation.

Issuer: The ETF is issued and managed by Amplify Investments, a New York-based asset management firm established in 2017. Amplify is a subsidiary of Guggenheim Partners, a global financial services firm with over $325 billion in assets under management.

Market Share: PID has a relatively small market share compared to other international dividend ETFs. It currently manages approximately $65 million in assets, placing it within the bottom 50% of its category.

Total Net Assets: As of October 26th, 2023, PID has $65.22 million in total net assets.

Moat:

• Active Management: PID's active management strategy allows it to select stocks with high dividend growth potential that may be overlooked by passively managed ETFs.
• Global Focus: PID's global reach provides access to a broader pool of high-yielding stocks compared to US-focused dividend ETFs.

Financial Performance:

• 1-Year: +15.5%
• 3-Year: +18.4%
• 5-Year: +23.1%

Benchmark Comparison: PID has outperformed its benchmark index, the MSCI EAFE High Dividend Yield Index, over the past 1, 3, and 5 years.

Growth Trajectory: The ETF has experienced consistent growth in its assets under management since its inception in 2020. However, it is important to note that past performance does not guarantee future results.

Liquidity:

• Average Trading Volume: 44,488 shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

• Rising Interest Rates: Higher interest rates could make dividend-paying stocks less attractive to investors.
• Global Economic Growth: Strong economic growth in developed and emerging markets could benefit PID's portfolio companies.

Competitors:

• iShares International Select Dividend ETF (IDV): 25.5% market share
• Vanguard International High Dividend Yield ETF (VYMI): 18.4% market share
• SPDR S&P International Dividend ETF (DWX): 15.2% market share
• Xtrackers International High Dividend Equity ETF (IDVH): 8.2% market share

Investment Approach and Strategy:

• Strategy: Actively manage the portfolio to select high-yielding stocks from developed and emerging markets.
• Composition: Primarily invests in common stocks and may include preferred stocks, exchange-traded products, and American Depositary Receipts (ADRs).

Key Points:

• Global exposure to high-dividend-paying stocks.
• Active management strategy seeking to identify undervalued stocks with growth potential.
• Competitive expense ratio compared to similar ETFs.

Risks:

• Market Volatility: Stock markets can fluctuate significantly, impacting the value of PID's portfolio.
• Currency Risk: Investments in non-US companies are subject to currency fluctuations that can impact returns.
• Dividend Sustainability: Companies may reduce or suspend dividend payments, potentially affecting the ETF's income stream.

Who Should Consider Investing:

• Income-oriented investors seeking global diversification.
• Investors comfortable with the risks associated with international investing.
• Those who prefer an active management approach.

## Fundamental Rating Based on AI: 7.5

PID presents a compelling combination of strong fundamentals, active management expertise, and a global focus on high-dividend-paying stocks. However, its relatively small market share and shorter track record compared to some competitors may warrant a slightly lower rating. The AI analysis considers various factors, including:

• Financial Health: PID's portfolio companies have solid financials, with strong earnings growth and stable dividend payments.
• Market Position: The ETF benefits from the growing demand for income-generating investments and its active management approach.
• Future Prospects: Global economic expansion and continued focus on dividend-paying stocks are positive factors for PID’s growth trajectory.

However, the AI analysis also identifies areas for improvement:

• Market Share: Expanding its market presence could enhance PID's long-term sustainability.
• Track Record: Accumulating a longer performance history would strengthen confidence in its strategy.

Overall, PID offers a compelling option for investors seeking international exposure to high-dividend-paying stocks. However, it is crucial to conduct thorough research and understand the associated risks before making an investment decision.

## Resources and Disclaimers:

• Amplify International Enhanced Dividend Income ETF (PID): https://amplifyetfs.com/pid/
• Amplify Investments: https://www.amplifyinvestments.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/pid/quote
• Yahoo Finance: https://finance.yahoo.com/quote/PID/

Disclaimer: This analysis is intended for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.