"When you plan to hold an investment for decades, you need to be very careful about what you invest in. Gone are the days when the S&P 500 generated steady returns. Amplify CWP Growth & Income ETF, Avantis International Small Cap Value ETF (NYSEARCA:AVDV ) and Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO ) are ETFs worth considering today."
"Amplify CWP Growth & Income ETF is a fund that aims to provide capital appreciation and steady income. It is a fairly new fund launched in 2024 and invests in large-cap stocks. It holds 55 U.S. growth-focused stocks and sells short-term covered-call options on the holdings to turn a part of the upside into immediate cash. This allows the ETF to offer capital appreciation on growth stocks while ensuring a high monthly dividend. Its dividends come from options premiums and the distribution announced by the companies."
"The fund manager will only write calls if the price momentum looks favorable. If the options premiums continue to stay rich, the ETF could deliver an equity-like upside with a high yield. Even if the tech stalls, the call premiums can provide a steady pay check. It pays monthly dividends and has recently announced a dividend of $0.193."
Limiting investments to the S&P 500 can forfeit higher-yield ETF opportunities that diversify portfolios and generate passive income. Amplify CWP Growth & Income ETF launched in 2024 to provide capital appreciation and steady income by holding 55 U.S. growth-focused large-cap stocks and selling short-term covered-call options to convert part of upside into immediate cash. Dividends derive from options premiums and company distributions; the fund pays monthly and recently declared $0.193. The ETF shows heavy technology exposure (41.07%), top holdings including Nvidia, Apple, Alphabet, Amazon, Microsoft, Tesla, Broadcom, and a reported yield of 12.02. Avantis AVDV and Amplify DIVO are also presented as ETF options.
Read at 24/7 Wall St.
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