Jay Coulter, CFP®, CIMA®
IDVO - The Amplify International Enhanced Dividend Income ETF
International investing can be a great way for investors to diversify their portfolio and tap into the growth potential of companies in markets outside of the US. IDVO from Amplify ETFs is one option for investors looking to add international dividend exposure to their portfolio, while also potentially generating income through the use of covered calls.
The IDVO ETF: An Overview (From their website)
IDVO is an ETF of high-quality international large and mid-cap companies through American Depositary Receipts (ADRs) with a history of dividend and earnings growth, along with a tactical covered call strategy on individual securities. Capital Wealth Planning LLC (CWP) serves as the investment sub-adviser to the Fund.
Three Reasons to Own IDVO:
Two Potential Income Streams: IDVO seeks to provide income from international dividend-paying stocks and by opportunistically writing covered calls on those stocks.
Seeks to Lower Volatility: Dividend and option income reduce share price volatility versus the overall market during times of broad-based market declines.
Professionally Managed: Access a professionally managed dividend and option income international investment strategy through the efficiency of an ETF.
Why International? Historically, foreign companies can provide diversification if added to US-only portfolios. In many cases, these companies offer the potential for faster growth than typical domestic companies. Additionally, writing covered calls on these foreign stocks have historically provided higher premiums.Covered Calls: Enhancing Income Potential
One of the unique features of the IDVO ETF is its use of covered calls. Covered calls are a strategy where an investor sells call options on a security they own in order to generate income. The IDVO ETF uses this strategy on a portion of its holdings in order to potentially generate additional income for investors.
By selling call options, the IDVO ETF receives a premium that can be used to increase the income generated by the ETF. If the underlying security is called away, the ETF may realize capital gains, but if not, the ETF can continue to hold the security and sell more call options in the future.
Capital Wealth Planning: A Strong Partner
Amplify ETFs has partnered with Capital Wealth Planning to manage the IDVO ETF. Capital Wealth Planning is also the Sub-adviser of DIVO from Amplify, which has been successful in generating income for investors through its use of covered calls and earned 5 Stars from Morningstar.
Consultant Expertise: Tim Seymour from CNBC's Fast Money
In addition to its partnership with Capital Wealth Planning, IDVO also has the expertise of Tim Seymour. Seymour has experience in international investing and can provide insights and analysis to help the IDVO team make informed investment decisions.
IDVO Website: www.idvoetf.com
Important Disclaimer: The content presented on this site is for informational and educational purposes only and is not intended to provide, and should not be construed as, investment advice or recommendations for any particular security, investment product, or strategy. The views and opinions expressed on any blog post, video or social media post are those of the author/publisher and do not necessarily represent or reflect the views of any affiliated companies or organizations. This video discusses an Exchange Traded Fund (ETF) as a potential investment option. Please be aware that investing in ETFs, like any investment, carries risks and the value of your investment may go up or down. Past performance is not indicative of future results, and there can be no assurance that the ETF discussed on this site will achieve its investment objectives or that investors will not lose money. You should carefully consider your own financial situation, investment objectives, risk tolerance, and investment knowledge before making any investment decisions. The author/publisher is not acting as a registered investment adviser or financial planner with the ETF Stories platform. The publisher is not a broker-dealer and does not purport to be or to provide any such services. You should consult a professional financial advisor or other qualified experts before making any investment decisions. By accessing, viewing, or using the information presented on this site, you acknowledge and agree that the author/publisher shall not be held liable or responsible for any direct, indirect, incidental, special, consequential, or exemplary damages, including but not limited to damages for loss of profits, goodwill, use, data, or other intangible losses, resulting from your use of, or inability to use, the information in this video or any investment decisions made based on the content of this site. Remember, this is not investment advice. Invest at your own risk, and always do your own research before making any investment decisions.