As investors navigate a shifting interest rate landscape, the appetite for enhanced yield is driving product evolution. Amplify ETFs has announced a significant pivot for the Amplify Energy & Natural Resources Covered Call ETF (NDIV ). Formerly known as the Amplify Natural Resources Dividend Income ETF, the fund has integrated an options overlay, building out its role in portfolios from a traditional dividend play.
“We continue to see product innovation meet the growing demand for alternative sources of income beyond bonds,” Cinthia Murphy, Director of Research at VettaFi, said. “Derivative income has become a popular and powerful tool for ETF investors looking for that additional juice.”
The change is a fundamental shift in the fund’s passive mandate. NDIV tracks the VettaFi Energy and Natural Resources Covered Call Index. While the underlying equity exposure remains focused on the same energy and natural resources constituents, the new index methodology introduces a monthly covered call strategy designed to harvest volatility and boost total distributions.
“The cash flow generation dividend story for energy and natural resource companies remains intact. And now we are adding a covered call overlay to enhance yield even further,” Jane Edmondson, head of index product strategy at VettaFi, said.
The Amplify Energy & Natural Resources Covered Call ETF (NDIV) and Income Generation
The VettaFi index is engineered to generate a target option premium of 0.50% monthly, or 6.00% annualized. This premium is layered on top of the dividends provided by the underlying equity securities. To achieve this, the index utilizes a “coverage ratio” when weighting its short call options.
The index utilizes a strategic coverage ratio when weighting its short call options to balance yield and growth. While a 100% coverage ratio would maximize immediate premium but “call away” all potential upside, NDIV’s index employs a maximum coverage cap of 80%. This structural limit ensures that at least 20% of the fund’s equity exposure remains unhedged. That allows shareholders to participate in significant sector rallies while still harvesting the target 6% annualized option premium.
Strategic Fit in a Lower Rate Environment
The shift toward derivative-based income is part of a massive industry-wide trend. According to a recent J.P. Morgan Asset Management report, derivative income ETFs gathered $54 billion in 2025, bringing the category’s total asset base to $127 billion.
For advisors, NDIV sits alongside Amplify’s other popular income solutions, such as the Amplify CWP Enhanced Dividend Income ETF (DIVO ) and the Amplify International Enhanced Dividend Income ETF (IDVO ).
DIVO and IDVO focus on high-quality blue-chip equities. Meanwhile, NDIV provides a specialized high-yield sleeve within the cyclical energy and materials sectors.
Current holdings in the underlying index include dividend-payers such as Petroleo Brasileiro (PBR), Atlas Energy Solutions (AESI), and Eastman Chemical (EMN). NDIV offers a tool for investors seeking robust cash flow in a low-rate environment.
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VettaFi LLC (“VettaFi”) is the index provider for NDIV, for which it receives an index licensing fee. However, NDIV is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NDIV.
