IDVO adds to Amplify ETFs’ income suite, seeks to offer high-quality international dividend income; monthly distribution schedule
CHICAGO, Sept. 08, 2022 (GLOBE NEWSWIRE) -- Amplify ETFs announces the launch of the actively managed Amplify International Enhanced Dividend Income ETF (NYSE Arca: IDVO). IDVO seeks to provide monthly income (approximately 3%-4% from dividend income and 2%-4% from sold call options) from international dividend-paying stocks in the form of American depository receipts (ADRs) and by opportunistically writing covered calls on those stocks.1
IDVO joins Amplify ETFs’ growing suite of income ETFs, including its domestic counterpart – Amplify CWP Enhanced Dividend Income ETF (DIVO) – which also aims to offer high levels of total return on a risk-adjusted basis and has over $1.7 billion in assets.
“IDVO will utilize a strategy that seeks to produce investment income from both dividends and tactical covered calls written selectively on its portfolio of high-quality international stocks,” said Christian Magoon, CEO of Amplify ETFs. “We believe this approach will satisfy international stock investors who are seeking attractive monthly income but are also focused on higher quality holdings. IDVO is a compelling geographical extension of our growing income ETF lineup at Amplify.”
IDVO will invest in 30-50 securities that have been screened according to attributes such as earnings, cash flow, return on equity, market capitalization and management track. Furthermore, the use of tactical covered call writing on individual securities will lower risk and enhance total return. The fund seeks to provide gross income of approximately 3%-4% from dividend income and 2%-4% from sold call options. The fund seeks to provide current income as its primary investment objective and to provide capital appreciation as its secondary investment objective. Amplify Investments LLC serves as the investment adviser to the Fund. Capital Wealth Planning, LLC and Penserra Capital Management LLC each serve as investment sub-advisers to the Fund.
“We are excited to expand our relationship with Amplify ETFs in offering IDVO, the international counterpart to DIVO,” said Kevin Simpson, CIO and founder, Capital Wealth Planning, LLC and Josh Smith, Lead Portfolio Manager, Capital Wealth Planning, LLC. “We are seeing additional opportunities abroad that income investors can now access through IDVO, which focuses on high-quality international companies that have a history of growing earnings and dividends combined with our proprietary covered call strategy.”
Amplify ETFs, sponsored by Amplify Investments, has over $3.5 billion in assets across its suite of ETFs (as of 8/31/2022). Amplify believes the ETF structure empowers investors through efficiency, transparency and flexibility. Amplify ETFs deliver expanded investment opportunities for investors seeking growth, income, and risk-managed strategies.
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 Fund’s 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. You could lose money by investing in the Fund. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. There can be no assurance that the Fund’s investment objectives will be achieved.
The Fund is subject to management risk because it is actively managed. 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. Investments in foreign securities involve greater volatility and political, economic, and currency risks and differences in accounting methods. Investments in emerging market issuers are subject to a greater risk of loss than investments in issuers located or operating in more developed markets. There is no guarantee that a company will pay or continually increase its dividends. The Fund intends to estimate annual income and pay in monthly installments. In doing so, some portion of the distribution could be considered a return of capital for tax purposes.
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.
Amplify Investments LLC serves as the investment adviser to the Fund. Capital Wealth Planning, LLC and Penserra Capital Management LLC each serve as investment sub-advisers to the Fund. Amplify ETFs are distributed by Foreside Fund Services, LLC.
1 Writing covered calls may limit the upside potential of the underlying security and does not protect against loss beyond the option premium received.
