New Amplify ETF Offers Both Growth and Income

QDVO’s strategy focuses primarily on capital appreciation, with a secondary goal of seeking current income. The actively managed fund operates with a net expense ratio of 0.55% 

“QDVO is an exciting addition to the Amplify lineup and partnership with Capital Wealth Planning (CWP),” noted Christian Magoon, CEO of Amplify ETFs. “QDVO is designed to capture investors’ enduring appetite for growth while providing high monthly income potential, empowering them to optimize their portfolios in various market environments.”

A substantial majority of QDVO’s net assets are focused on U.S. securities with a growth focus. These equities are large-cap players from the Russell 1000 Growth Index. 

Lasering in on large-cap growth stocks can offer investors a number of benefits. Firstly, screening companies within the Russell 1000 Growth index can help curate a portfolio designed to offer long-term value. Additionally, the focus on large-cap stocks mitigates much of the risk present in lower-cap growth strategies. 

To bolster the fund with additional income, QDVO will also write call options on equities within the portfolio. The fund prospectus adds that call options may be sold to hedge market exposure or mitigate broader risk from the portfolio. 

Investors seeking a fund that can position itself around market and economic movement may find appeal within QDVO. As an actively managed fund, QDVO can adaptably position its equity securities and option strategies to bolster its results or mitigate potential downside risks. 

This fund is far from the first Amplify ETF to use an income strategy through dividends and call writing. For example, the Amplify CWP Enhanced Dividend Income ETF (DIVO B+) currently sits at about $3.4 billion in assets under management. 

DIVO’s established success highlights Amplify’s experience in cultivating income-seeking strategies. As of July 31, 2024, the fund’s NAV has risen 9.12% over the last six months.

With QDVO now available on the market, Amplify’s list of ETFs listed in the U.S.sits at about 30 funds. As a whole, these ETFs represent over $9.3 billion in assets under management. 

For more information, please visit VettaFi.com | ETF Trends.