Amplify CWP Enhanced Dividend Income ETF (DIVO): A Tier Three ETF

Not all covered call ETFs are created equal.

Some prioritize generating as much income as possible.

DIVO takes a different approach.

It begins by owning exceptional businesses.

Only then does it selectively write covered calls on individual holdings to generate additional income.

That difference matters.

For a Tier Three DGI Crabber, DIVO isn't simply an income fund.

It's a portfolio of outstanding businesses designed to produce dependable monthly cash flow without completely sacrificing long-term growth.

Key Statistics

• Ticker: DIVO
• Tier: Tier Three
• Investment Style: Enhanced Dividend Income
• Fund Inception: December 14, 2016
• Expense Ratio: 0.56%
• Assets Under Management: Approximately $7.2 billion
• Number of Holdings: Approximately 30
• Distribution Frequency: Monthly

Unlike many passive ETFs, DIVO is actively managed, allowing the portfolio managers to carefully select individual companies and opportunistically write covered calls only when they believe it benefits shareholders. This flexible approach is one of the fund's defining characteristics.

Why DIVO Fits Tier Three

Tier Three is designed to generate dependable, growing income from exceptional businesses.

The objective isn't simply maximizing yield.

It's producing high-quality income that investors can rely on for years to come.

Across my Tier Three portfolio, I'm generally looking for:

• An average starting dividend yield of approximately 5%
• Approximately 4% to 5% annual dividend growth

DIVO fits that philosophy beautifully.

By combining dividends from outstanding companies with carefully managed option income, it provides investors with a higher level of current income while still maintaining meaningful exposure to long-term capital appreciation.

That's exactly the role I want a Tier Three ETF to play.

What Does DIVO Own?

One of my favorite aspects of DIVO is how concentrated the portfolio is.

Instead of owning hundreds of companies, management focuses on a relatively small collection of businesses they know extremely well.

Many of those companies are already familiar to DGI Crabbers because they're featured throughout my 50-stock series.

Businesses such as Microsoft (MSFT), JPMorgan Chase (JPM), American Express, Amgen, and Caterpillar (CAT) are examples of the high-quality companies DIVO has owned as core positions. These are businesses with durable competitive advantages, strong cash flow, and management teams that have consistently rewarded shareholders over time.

Why I Like DIVO

The biggest reason I like DIVO is its philosophy.

Management doesn't begin by asking, "Which stocks have the highest yields?"

Instead, they ask, "Which businesses would we be comfortable owning for many years?"

Only after selecting exceptional companies do they enhance portfolio income by writing covered calls on individual holdings when appropriate.

That order is incredibly important.

Business quality comes first.

Income enhancement comes second.

That's exactly how I think about investing.

Who Is This ETF For?

DIVO is ideal for investors who:

• Are building a Tier Three portfolio.
• Want dependable monthly income.
• Value business quality over simply chasing yield.
• Appreciate an actively managed approach.
• Want exposure to covered calls without giving up ownership of outstanding businesses.

It also pairs exceptionally well with individual Tier Three stocks, allowing investors to complement their favorite dividend companies with a professionally managed income strategy.

The Philosophy Behind the Fund

One reason I've become such a fan of DIVO is the investment philosophy behind it.

The strategy is managed by Capital Wealth Planning, founded by Kevin Simpson, author of the book Walk Toward Wealth.

If you've read that book, you'll notice many familiar ideas.

Own outstanding businesses. Think long term. Focus on quality. Allow exceptional companies to compound over time while generating dependable income.

Those principles closely mirror the philosophy I try to teach through The DGI Crab.

That alignment gives me additional confidence in the way DIVO is managed.

Final Thoughts from the DGI Crab

DIVO offers something I find very attractive.

It starts with outstanding businesses. It enhances income through a disciplined covered call strategy. And it never loses sight of long-term ownership.

For a Tier Three DGI Crabber, that's an excellent combination.

High-quality companies. Monthly income. Professional active management. And a philosophy centered on patience rather than speculation.

If I had to summarize DIVO in one sentence, it would be this:

Own exceptional businesses and thoughtfully enhance the income they produce.

That's exactly why DIVO has earned its place as one of my favorite Tier Three ETFs.