Amplify ETFs announces the launch of the actively managed Amplify International Enhanced Dividend Income ETF (NYSE Arca: IDVO).
The firm writes that IDVO seeks to provide monthly income (approximately 3 per cent-4 per cent from dividend income and 2 per cent-4 per cent 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.
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 USD1.7 billion in assets.
“IDVO will utilise 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,” says 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 line-up 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 capitalisation 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 per cent-4 per cent from dividend income and 2 per cent-4 per cent 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,” says 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.”
