About Amplify CWP Enhanced Dividend Income ETF (DIVO)

The Amplify CWP Enhanced Dividend Income ETF (DIVO) is an exchange-traded fund that focuses on providing enhanced dividend income to investors. DIVO seeks to provide investors with a high level of current income and the potential for capital appreciation. The fund invests primarily in a diversified portfolio of dividend-paying equity securities and uses a covered call strategy to enhance income. DIVO aims to outperform traditional dividend-focused ETFs by actively managing the covered call strategy to maximize income and mitigate downside risk.

One of the key features of DIVO is its enhanced dividend income strategy. By selling covered call options on the underlying securities in the fund's portfolio, DIVO generates additional income for investors. The covered call strategy involves selling the right to buy the fund's holdings at a specified price within a certain timeframe. If the price of the underlying security stays below the specified price, the option expires worthless, and the fund keeps the premium received. This strategy can significantly boost the fund's income potential, making it an attractive option for investors seeking higher yields.