Amplify ETFs has announced the launch of the actively managed Amplify International Enhanced Dividend Income ETF (NYSE Arca: IDVO). IDVO seeks to provide monthly income from international dividend-paying stocks in the form of American depository receipts (ADRs) and by opportunistically writing covered calls on those stocks.
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. Additionally, 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.
“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, in a news release. “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.”
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 advisor to the fund. Capital Wealth Planning LLC and Penserra Capital Management LLC each serve as investment sub-advisors to the fund.
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.
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