Amplify CWP Enhanced Dividend Income ETF

DIVO

Market cap $6.76B

Covered-call ETFs like the JPMorgan Equity Premium Income ETF ( NYSEARCA :JEPI ) , NEOS S&P 500 High Income ETF ( BATS :SPYI ) , and Goldman Sachs S&P 500 Premium Income ETF ( NASDAQ :GPIX ) have been extremely popular, and they still are.

The rise of Amplify ETFs is one of the more interesting stories in the U.S. ETF industry. Although it only launched its first ETF under that brand in 2016, its founder, Christian Magoon, was a well-known figure in the ETF space long before that.

Amplify CWP Enhanced Dividend Income ETF (DIVO) delivers defensive positioning, a 6.3% yield, and strong total returns, making it ideal for retirees seeking income and capital preservation. DIVO's active management and option-writing strategy enable participation in market upside while buffering declines, evidenced by outperformance versus SPY and QQQ in volatile periods. The fund's concentrated portfolio of high-quality, dividend-growing blue chips ensures sector diversity, income consistency, and tax efficiency, with 65% of distributions classified as return of capital.

Tony Dong is the founder of ETF Portfolio Blueprint.

The Schwab US Dividend Equity ETF (NYSE:SCHD) is one of the best-run dividend funds available.

Covered call ETFs offer attractive monthly yields, often exceeding 10%, appealing to income-focused investors. Most top covered call ETFs are heavily concentrated in large-cap growth, specifically S&P 500 and Nasdaq-100 exposures. This concentration introduces significant risk, as these ETFs exhibit strong performance correlations and similar downside profiles.

If I wanted to keep things simple and avoid derivatives entirely, I'd start with the WisdomTree U.S.

Schwab U.S. Dividend Equity ETF uses a complex screening process to select stocks. SPDR Portfolio S&P 500 High Yield ETF takes a simplistic approach to pick high-yield large-cap stocks.

JEPI is upgraded to Strong Buy, while DIVO retains Buy, reflecting current market regime suitability. JEPI's more aggressive option strategy and defensive equity allocation position it for superior income stability and drawdown protection in anticipated flat, volatile markets. DIVO's value-tilted, dividend-focused approach offers better upside capture and long-term total return, making it a compelling full-cycle holding despite lower yield.

If you're an income investor like me, you'll always be on the lookout for ways to make your money work for you.