Amplify CWP Growth & Income ETF

QDVO

Market cap $663M

Covered call ETFs have had a moment in the light, and the JPMorgan Equity Premium Income ETF (NYSE:JEPI) has captured much of that attention.

In this article, you will learn why the Amplify CWP Growth & Income ETF (QDVO) leads during growth, while the Amplify CWP Enhanced Dividend Income ETF (DIVO) saves during declines. A combination of QDVO and DIVO offers a balanced ~8% yield. Tactical covered call approach mitigates NAV erosion better than aggressive peers.

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 Growth & Income ETF is rated Buy, and NEOS NASDAQ-100 High Income ETF is rated Hold, reflecting a tactical shift for a range-bound market outlook. QDVO's broader, more diversified portfolio offers superior long-term positioning, especially if tech underperforms, despite its less aggressive covered call strategy. QQQI's higher option coverage (~50% vs. QDVO's ~21%) positions it for better income in flat markets, but neither ETF is optimized for aggressive income harvesting.

Amplify CWP Growth & Income ETF offers a ~10.7% yield and direct exposure to top-tier technology equities, making it attractive for income-focused retirees. QDVO's dynamic covered call strategy balances high monthly income with selective equity upside, though it structurally limits total return versus broad indices. Net assets grew over 50% to $616.6M, reflecting strong demand for high-yield equity income solutions with active management and tax-efficient distributions.

Monthly income checks from a portfolio of NVIDIA, Apple, Microsoft, and Alphabet sound appealing until you realize those same stocks have compounded at extraordinary rates for a decade.

Two covered call ETFs can sell options against equity positions and arrive at completely different outcomes depending on what stocks they own, how much of the portfolio they cover, and whether their underlying holdings are built for income or growth.

Amplify CWP Growth & Income ETF maintains a 'Buy' rating, offering a 10.7% yield amid growth stock volatility. QDVO's concentrated, actively managed portfolio of 20-40 mega-cap tech stocks emphasizes out-of-the-money covered calls for income and growth. Recent performance has lagged the S&P 500, with QDVO and NASDAQ 100 both down ~1% over six months, highlighting the similar volatility and the need for protection.

Amplify CWP Growth & Income ETF offers exposure to top tech names but underperforms passive alternatives like QQQM in total returns. QDVO's 10.63% yield is competitive among income-focused ETFs, yet its growth component fails to deliver versus both income and growth benchmarks. Despite high-quality holdings such as NVDA, AAPL, and MSFT, QDVO's higher expense ratio and lagging performance diminish its appeal.

Christian Magoon, Amplify ETFs CEO and founder, joins CNBC's Dominic Chu on 'Halftime Report' to discuss the firm's ETF suite which includes dividend and income-focused strategies via options.