Amplify CWP Enhanced Dividend Income ETF (DIVO) Covered Calls

The Amplify CWP Enhanced Dividend Income ETF (DIVO) is an actively managed exchange-traded fund that seeks to provide high current income and capital appreciation. The fund invests in a concentrated portfolio of high-quality, dividend-paying S&P 500 companies characterized by strong cash flows and earnings growth. By overlaying a tactical covered call strategy on individual stocks, DIVO aims to generate incremental income and reduce overall portfolio volatility.

You can sell covered calls on Amplify CWP Enhanced Dividend Income ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for DIVO (prices last updated Thu 4:16 PM ET):

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Amplify CWP Enhanced Dividend Income ETF (DIVO) is an "enhanced" equity income strategy that blends traditional dividend investing with active option management. Unlike many passive income ETFs that write covered calls on an entire index, DIVO’s managers at Capital Wealth Planning (CWP) hand-pick 20 to 25 "Blue Chip" stocks and opportunistically write calls on individual positions when volatility or technical setups are favorable. This selective approach is designed to capture more of the underlying stocks’ upside potential compared to systematic, index-based covered call funds.

Core Strategy and Allocation

The fund core equity sleeve focuses on sector leaders with a track record of increasing dividends. As of April 2026, the portfolio is heavily weighted toward Financials (approx. 25%), Industrials, and Information Technology. Top individual holdings include industrial stalwarts like Caterpillar (CAT) and RTX Corp (RTX), alongside financial giants like Goldman Sachs (GS) and JPMorgan Chase (JPM). The option component typically targets a 2% to 3% incremental yield on top of the portfolio’s organic dividend yield, resulting in a total distribution yield that often ranges between 4% and 7% annually, paid out in monthly distributions.

Competitive Landscape

1. JPMorgan Equity Premium Income ETF is the primary competitor; it uses a broader portfolio and equity-linked notes (ELNs) to generate high monthly income, though it typically offers less capital appreciation potential than DIVO.
2. Schwab US Dividend Equity ETF is the gold standard for passive dividend growth; while it does not use an option overlay, it competes for the "quality dividend" portion of investor portfolios.
3. iShares Core Dividend Growth ETF offers a similar focus on sustainable dividend growers, serving as a lower-cost, non-optioned alternative for long-term growth.
4. Global X S&P 500 Covered Call ETF is a passive rival that writes at-the-money calls on the entire S&P 500, offering higher yield but significant upside caps compared to DIVO’s tactical approach.
5. Vanguard Dividend Appreciation ETF targets companies with a decade-plus of dividend increases, competing for conservative investors seeking quality over immediate high yield.

Strategic Outlook and Innovation

The strategic outlook for DIVO in 2026 is focused on navigating "Midterm Volatility." Management has positioned the fund to benefit from a shift toward "Value" and "Defensive" sectors as the broader market enters a more choppy phase in the second half of 2026. Amplify has also expanded its suite to include QDVO (a growth-tilted version) and IDVO (international), allowing DIVO to function as the "conservative anchor" in a multi-asset income strategy. With a management fee of 0.56%, the fund remains a top choice for investors who want professional, active oversight of their covered call exposures.

Innovation at DIVO is driven by its tactical sensitivity. Unlike automated funds, DIVO’s managers can choose *not* to write calls during strong breakout periods, a feature that has historically allowed it to outperform passive peers during bull markets. In 2026, the fund is utilizing enhanced data analytics to identify "volatility clusters" in its tech and financial holdings, allowing for more precise timing of option premiums. This "smart-income" approach aims to deliver a smoother ride for retirees and income-focused investors by mitigating the sharpest edges of equity market drawdowns.

Want more examples? DIVI Covered Calls | DJD Covered Calls