Amplify International Enhanced Dividend Income ETF (IDVO)IDVO

Amplify International Enhanced Dividend Income ETF (DIVO) Overview

Profile:

DIVO is an actively managed ETF that seeks to provide a high level of current income and capital appreciation through a diversified portfolio of international dividend-paying equities. The ETF invests primarily in large- and mid-cap companies located in developed and emerging markets, excluding the United States.

Objective:

DIVO's primary objective is to generate a high level of dividend income for its investors. The ETF achieves this by focusing on companies with proven track records of paying dividends and a commitment to increasing payouts over time.

Issuer:

DIVO is issued by Amplify Investments, formerly known as Guggenheim Investments. Amplify is a global asset management firm with over $12 billion in assets under management. The firm has a strong reputation for innovation and expertise in alternative investment strategies.

Market Share:

DIVO accounts for approximately 0.5% of the market share in the International Equity Dividend ETF category.

Total Net Assets:

As of November 15, 2023, DIVO has total net assets of approximately $350 million.

Moat:

DIVO's competitive advantages include:

• Active Management: The ETF is actively managed by an experienced team of portfolio managers who have a deep understanding of the global dividend-paying equity universe.
• Global Diversification: The ETF provides investors with exposure to a diversified portfolio of international dividend-paying equities, reducing concentration risk.
• Focus on High-Quality Companies: The ETF invests in companies with strong financial fundamentals and a commitment to returning capital to shareholders through dividends.

Financial Performance:

DIVO has a track record of delivering strong returns since its inception in 2014. The ETF has outperformed its benchmark index, the MSCI ACWI ex USA High Dividend Yield Index, in most years.

Growth Trajectory:

The global dividend-paying equity market is expected to continue growing in the coming years, driven by factors such as aging populations and increasing demand for income-generating investments. This growth trajectory bodes well for DIVO's future prospects.

Liquidity:

DIVO has an average daily trading volume of approximately 100,000 shares. The ETF has a tight bid-ask spread, making it relatively easy to buy and sell shares.

Market Dynamics:

The primary factors affecting DIVO's market environment include:

• Global Economic Growth: A strong global economy supports corporate earnings and dividend payouts.
• Interest Rates: Rising interest rates can make dividend-paying equities less attractive, potentially putting downward pressure on the ETF's price.
• Currency Fluctuations: The ETF is exposed to currency risk, which can impact its returns.

Competitors:

DIVO's key competitors include:

• iShares International Select Dividend ETF (IDV)
• Vanguard International High Dividend Yield ETF (VYMI)
• SPDR S&P International Dividend ETF (DWX)

Expense Ratio:

DIVO has an expense ratio of 0.59%. This is slightly higher than the expense ratios of some of its competitors.

Investment Approach and Strategy:

DIVO utilizes a combination of quantitative and fundamental analysis to select its holdings. The ETF invests in companies with:

• High Dividend Yields: The ETF focuses on companies with above-average dividend yields.
• Strong Financial Performance: The ETF invests in companies with strong financial fundamentals and a track record of consistent dividend payments.
• Growth Potential: The ETF also considers companies with the potential for dividend growth in the future.

Key Points:

• Actively managed ETF focused on international dividend-paying equities.
• Strong track record of performance.
• Global diversification and exposure to high-quality companies.
• Relatively high expense ratio.

Risks:

• Market risk: The ETF is subject to market fluctuations and could experience losses if the overall stock market declines.
• Dividend risk: Dividends are not guaranteed and could be reduced or eliminated if a company's financial performance deteriorates.
• Currency risk: The ETF is exposed to currency risk, which can impact its returns.

Who Should Consider Investing:

DIVO is suitable for investors seeking income-generating investments with a global focus. The ETF is also appropriate for investors with a long-term investment horizon.

Fundamental Rating Based on AI

Rating: 8/10

Analysis:

DIVO receives a strong rating based on its fundamentals. The ETF has a proven track record of performance, a well-diversified portfolio, and a focus on high-quality companies. The ETF's active management approach also provides an advantage over passive dividend-focused ETFs. However, the relatively high expense ratio is a slight drawback.

Resources and Disclaimers:

• Data Sources: Morningstar, FactSet, ETF.com
• Disclaimer: This analysis is provided for informational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.