Amplify’s QDVO: A powerhouse ETF for growth & income

Amplify ETFs has launched one of the most remarkable additions to its income-generating fund family: the Amplify CWP Growth and Income ETF (NYSE Arca: QDVO). This pioneering ETF will strike a balance between capital appreciation and strong income generation. QDVO will invest in growth-oriented U.S. equities and employ a covered call strategy in pursuit of significant growth potential and steady income streams for investors.

Introduction of QDVO

The Amplify CWP Growth and Income ETF seeks a high total return with an emphasis on capital appreciation and income. The ETF is taken to large-cap, growth-oriented U.S. equities and incorporates a tactical covered call writing strategy to enhance income. Covered calls entail selling call options against the fund’s existing stock holdings to generate additional income from the sale of options.

QDVO joins Amplify’s broadening suite of income-focused ETFs, including the highly rated Amplify CWP Enhanced Dividend Income ETF (NYSE Arca: DIVO) and the Amplify CWP International Enhanced Dividend Income ETF (NYSE Arca: IDVO), all of these employ related investment strategies that, through tactical covered call writing and dividends, seek enhanced income.

Key Features

1. Investment Strategy: QDVO makes a strategic investment of at least 80% in growth-oriented U.S. equities. Most of the Amplify ETF selects large-cap stocks with the potential for strong growth from the Russell 1000 Growth Index. The strategy follows a covered call option that enhances the income component through the selling of call options on the underlying stock, which generates extra income.
2. Generation of Income: The ETF will be targeting an annual income rate of 6% to 8% to the investor, which is made up of around 4-6% from option premiums and another up to 2% from dividends. This strategy shall offer the investors a steady income stream with the maintenance of the core holding in the growth stock, balancing high income with capital appreciation.
3. Portfolio Construction: QDVO invests in an underlying portfolio of 20-40 large-cap U.S. stocks. The security selection is concentrated on companies with strong earnings, cash flow, return on equity, and solid management. The diversified sector allocation under the ETF is meant to enhance risk-adjusted returns while minimizing sector-specific volatility.
4. Management and Fees: Mgmt. and Fees Actively managed by Capital Wealth Planning (CWP), the expert hands behind strategic adjustments and oversight push the ETF toward potential performance improvements. QDVO gathers a 0.55% expense ratio, making it a good cost-effective investment for a blend of growth and income.
5. Market Context: Christian Magoon, CEO of Amplify ETFs, says, “QDVO is the latest in the persistent investor demand for solutions that offer growth potential alongside income. QDVO has been launched at an opportune time, providing investors with a way to balance growth and income in different market environments.”

Statements from Leadership

“QDVO is an exciting addition to the Amplify lineup and partnership with Capital Wealth Planning,” said Christian Magoon. “It is designed to meet the enduring appetite for growth while providing high monthly income potential. We expect QDVO to complement our existing strategies, including DIVO and IDVO, and offer investors a balanced approach to growth and income.”

Kevin Simpson, CEO of Capital Wealth Planning, added, “We are thrilled to expand our collaboration with Amplify ETFs through the introduction of QDVO. This fund allows investors to access a growth-oriented, high-income strategy that is well-suited to managing risk and enhancing returns.”

Conclusion

QDVO can be considered a very strategic addition to Amplify’s fund suite, really leveraging its position at the intersection of growth and income. QDVO invests in US equities with a growth orientation and implements a covered call strategy, seeking both a high total return and a steady income stream. This Amplify ETF is well-positioned to attract investors looking for both capital appreciation and steady income from their portfolios.