Amplify ETFs announces the launch of Amplify YieldShares CWP Dividend & Option Income ETF (BATS: DIVO), expanding its suite of income-oriented ETF solutions. DIVO seeks to provide investment results, before fees and expenses that correspond generally to the Enhanced Dividend Income Portfolio (EDIP), an existing strategy managed in separate account format by DIVO’s Sub Adviser, Capital Wealth Planning (CWP). EDIP complements its dividend paying stock portfolio with an opportunistic covered call writing program. These two potential sources of income set the strategy apart from traditional dividend-only strategies. The strategy underlying DIVO seeks to produce annual income of 4 – 7%.
“The DIVO launch is part of our long-term objective to build the Amplify YieldShares suite of income-oriented investment strategies. DIVO’s two-fold income approach may help to hedge traditional dividend investors’ portfolios from a rising rate environment,” said Christian Magoon, ETF industry veteran and CEO of Amplify Investments. “We believe DIVO is a natural complement to the existing Amplify YieldShares Prime 5 Dividend ETF (PFV) and the YieldShares High Income ETF (YYY).”
At any given time, DIVO will invest in 20 to 25 dividend paying stocks as identified in the universe of large-cap, high quality, and blue chip companies from the S&P 500 Index that could, over time, sustain earnings and cash flow growth and increase their dividends. Additionally, the strategy seeks to lower risk and enhance total return by tactically selling short-term call options on some, or all, of the individual stocks in the portfolio.
“We are pleased to begin our partnership with Amplify Investments and expand the availability of the EDIP strategy to a broader market through DIVO,” said Kevin Simpson, CEO of Capital Wealth Planning.
Investors can learn more about DIVO at AmplifyETFs.com.
About Amplify ETFs
Amplify believes the ETF structure empowers investors through efficiency, transparency and flexibility. Using those benefits as a foundation, Amplify seeks to build ETFs powered by investment strategies from leading index providers and asset managers within unique market segments. Amplify ETFs are sponsored by Amplify Investments, a registered investment advisor. Amplify is also the sponsor of YieldShares, a brand of income-oriented ETFs. The firm was founded by Christian Magoon, an ETF veteran who has launched over 50 ETFs in the United States to date.
About Capital Wealth Planning
Capital Wealth Planning is a fee-only Investment Advisory Firm based in Naples, Florida. The firm has been building and managing proprietary income-oriented portfolios since 2005. CWP exists at the forefront of implementing covered call strategies with their ETF Income Portfolio, Enhanced Dividend Portfolio and Covered Call Overlay Service. The methodologies are designed to enhance risk-adjusted returns and offer portfolio hedging while delivering monthly cash-flow.
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ statutory and summary prospectus, which may be obtained by calling 855-267-3837 or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. The fund is new with limited operating history. You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. There can be no assurance that the Fund's investment objectives will be achieved. Covered call risk is the risk that the Fund will forgo, during the option's life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. The Fund may invest in mid-capitalization companies. This may cause the Fund to be more vulnerable to adverse general market or economic developments because such securities may be less liquid and subject to greater price volatility than those of larger, more established companies. Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.
The S&P 500 Index is an unmanaged index considered representative of the U.S. stock market. It is not possible to invest directly in an index.
Cash flow is the net amount of cash and cash-equivalents moving into and out of a company.
Amplify ETFs are distributed by Quasar Distributors LLC.
Amy Lash, 610-228-2806