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Amplify CWP Enhanced Dividend Income ETF (DIVO)

lynnbolin2021
in Fund Discussions
https://seekingalpha.com/article/4396920-amplify-cwp-enhanced-dividend-income-etf-5-distribution


The Amplify CWP Enhanced Dividend Income ETF seeks to deliver cash flow of 4% to 7% gross of fees and commissions plus the potential for capital appreciation.

Since inception in 2016, DIVO has an average annual return of 12.5% with a beta of 0.78 compared to the S&P 500. TTM distributions are about 5%.

DIVO is strategically designed to offer high levels of total return on a risk-adjusted basis.

Mutual Fund Observer classifies DIVO as a Great Owl Fund in the Equity Income Category with a MFO Rating of 5 (Best) and MFO Risk of 4 (Similar to S&P 500).

Morningstar's new Crowd Sense metric rates DIVO as "High Attention" and "High Appeal". It gives DIVO a quantitative Five Star Rating and Bronze Medal Performance.

Comments

  • rforno
    Yup. I've had a resting order to buy into it sitting on my account for over a week now ... I'm intrigued by this duck.
  • little5beelittle5bee
    edited January 2021
    I have owned it since the Covid downturn. Although the yield is not as attractive now, I have no intention of selling, but will buy more if we have a dip. My only issue with it is that the bid/ask spread is usually larger than I like. Several years ago, I spoke to an advisor at Capital Wealth Planning in Naples, FL (the subadvisor of DIVO) about opening a separately managed account using this strategy. I hesitated to pull the trigger because it would entail buying many stocks at what was then an all-time high. I did some digging to look for an ETF or mutual fund that had the same strategy and discovered DIVO. I feel more comfortable owning this because I am in control of when to add and when to trim. And unlike the separately managed account where the distributions get paid more sporadically (per the advisor there), DIVOs dividends are paid regularly. A lot less complicated to own DIVO.
  • MarkMark
    What distinguishes this fund from DGRO? I'm not seeing it other than a higher reported income component from DIVO.
  • little5beelittle5bee
    DGRO focuses on dividend growth; DIVO on covered call overlay. You can read more www.capitalwealthplanning.com enhanced dividend income portfolio.
  • MarkMark
    I have read all of that and I was looking for a compelling rationale for switching if one presented itself.
  • lynnbolin2021
    Hello Mark,

    Some investors believe very strongly in living off the income of their portfolio. Total return investors tend to raise cash as they rebalance. I care most about risk management. Having lower drawdowns with moderate total returns. As I near retirement I have been researching funds that also produce safe income.

    The largest compelling reason to own DIVO is safer, higher income.
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