Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Amplify CWP Enhanced Dividend Income ETF (DIVO)

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

  • 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.
  • 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.
  • What distinguishes this fund from DGRO? I'm not seeing it other than a higher reported income component from DIVO.
  • DGRO focuses on dividend growth; DIVO on covered call overlay. You can read more www.capitalwealthplanning.com enhanced dividend income portfolio.
  • I have read all of that and I was looking for a compelling rationale for switching if one presented itself.
  • 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.
Sign In or Register to comment.