Hot ETFs: Cybersecurity, Income & Bitcoin
(6:50) - Amplify Cybersecurity ETF: HACK
(12:45) -What Is Driving the Popularity of Option Income ETFs?
(19:00) - What Type of Investor Should Be Using Covered Call Products?
(23:50) - Amplify CWP Enhanced Dividend Income ETF: DIVO
(28:00) - Should You Be Using Single Stock Covered Call ETFs?
(33:10) - Amplify CWP International Enhanced Dividend Income ETF: IDVO
(37:00) - Breaking Down Amplify's Bitcoin ETF Products: BITY & BAGY
(43:40) - Episode Roundup: Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Christian Magoon, Founder and CEO of Amplify ETFs, about some intriguing areas of the market that have attracted investors amid ongoing market volatility: cybersecurity, income, and Bitcoin.
The global market for cybersecurity products and services is expected to witness immense growth as more companies incorporate AI into their operations—while criminals are also leveraging AI technology to amplify and intensify cyberattacks.
While many companies may cut discretionary spending this year due to rising economic uncertainty, cybersecurity remains an area they cannot afford to ignore.
Google parent Alphabet GOOGL recently announced a deal to acquire cybersecurity startup Wiz for $32 billion. We could see an increase in M&A activity in the cybersecurity space.
Launched in 2014, HACK was the first cybersecurity ETF designed to provide cost-effective exposure to companies in the growing cybersecurity industry.
Income-hungry investors have been piling into ETFs that use options strategies to generate attractive yields. In addition to offering high income, these strategies typically help reduce portfolio volatility.
The Amplify CWP Enhanced Dividend Income ETF DIVO focuses on high-quality large-cap companies with a history of dividend growth and writes covered calls on individual stocks. Meta Platforms META and Apple AAPL are among its top holdings.
While DIVO has significantly outperformed the market leader—JPMorgan Equity Premium Income ETF JEPI—both have underperformed the S&P 500 ETF (SPY) over the long term on a total return basis. Who are the ideal users of these products?
The Amplify International Enhanced Dividend Income ETF IDVO follows the same strategy as DIVO but invests in international stocks.
Newly launched Amplify ETFs combine two of the hottest trends: Bitcoin and income. They employ a covered call strategy tied to Bitcoin price exposure through the iShares Bitcoin Trust IBIT.
Tune in to the podcast to learn more. And be sure to watch for the next edition of ETF Spotlight! If you have any comments or questions, please email us at podcast@zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Amplify CWP Enhanced Dividend Income ETF (DIVO): ETF Research Reports
JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
Amplify CWP International Enhanced Dividend Income ETF (IDVO): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Bitcoin, ethereum slip as crypto markets pull back after hitting 2025 highs
Bitcoin (BTC-USD) extended declines on Monday following last week's record highs as investors took profits from the latest crypto rally. The world's largest cryptocurrency sank 2%, hovering just above $115,000 in early trading after surging past $123,500 last Thursday. Expectations of Fed rate cuts, coupled with heavy purchases from corporate treasuries, have driven the price of bitcoin up 23% year to date. Ether (ETH-USD), the second-largest crypto by market cap, also declined 3% to hover near $4,350 per token following a surge last week to its highest level of the year and approaching its record high just below $4,900. "The sharp pullback in cryptocurrencies comes as the market is getting deleveraged following the peaks recorded last week," said Samer Hasn, senior market analyst at foreign exchange trading platform pointing to "an erosion of bullish momentum." Hasn pointed out that since last Thursday, more than $1.7 billion in long crypto futures positions have been liquidated, according to CoinGlass data. The sell-off comes as the broader market rally has paused, with the S&P 500 (^GSPC) hovering near record levels. Late last week, bitcoin and other digital assets slipped from highs as hopes of a 0.5% interest rate cut from the Federal Reserve in September fizzled on the heels of a hotter-than-expected wholesale inflation print. Read more: Can you buy crypto with a credit card? See the pros and cons. Investors will be searching for clues on the policymakers' next move when Fed Chair Jerome Powell speaks at the Jackson Hole Economic Symposium this Friday. "If Powell maintains a 'wait-and-see' approach, BTC will likely struggle to break higher in the near term, instead consolidating within the $115,000–$120,000 range," crypto derivatives exchange Bitunix analyst Dean Chen said. "A breakdown could expose $112,000, while holding above could allow another test of the $118,000–$120,000 resistance band." Crypto-related stocks like Strategy (MSTR), Robinhood (HOOD), and Coinbase (COIN) slipped at the opening bell on Monday but recovered a chunk of losses through the first hour of trading. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre.
Yahoo
36 minutes ago
- Yahoo
Famed Short Seller Warns Strategy's $51M Bitcoin Buy Signals Weak Demand for Latest Offering
Famed short-seller James Chanos, who's best known for shorting Enron before its implosion in 2007, is calling out Strategy for its modest $51 million Bitcoin purchase and loosening a key safeguard against shareholder dilution. Chanos said the company's latest Bitcoin purchase points to weak demand for its preferred stock offerings, and accused chairman Michael Saylor of lowering a key shareholder safeguard, in a tweet on Monday. In its Q2 2025 earnings report, Strategy said it would only issue stock below 2.5x mNAV to service debt interest or fund dividends on preferred shares, not to buy more BTC. mNAV, or 'market-to-net asset value,' is calculated by dividing Strategy's market cap by the sum of its Bitcoin holdings and operating assets. A reading of 2.5 signals that the stock trades at a 150% premium to its underlying assets. But the recent investor slide added the phrase 'when otherwise deemed advantageous,' language that critics like Chanos interpret as giving the company more leeway to issue equity even at lower multiples. Saylor announced the purchase of 430 BTC worth $51.4 million on Monday, revealing the firm paid roughly $119,666 per BTC in the transaction. With the latest buy, the Virginia-based company, formerly known as MicroStrategy, has pushed its total Bitcoin holdings to a massive 629,376 BTC worth approximately $72 billion at the time of writing. Strategy's Bitcoin accumulation strategy has made it the world's largest corporate holder of BTC, owning more than 3% of Bitcoin's current circulating supply. Japan's Metaplanet also joined the buying spree Monday, adding 775 BTC for $93 million to bring its holdings to 18,888 BTC. Bitcoin is currently trading at $115,192, down 2.8% in 24 hours, with more than $120 million in long positions liquidated, according to CoinGlass. Earlier this month, Saylor indicated the company could eventually hold between 3-7% of Bitcoin's total 21 million supply—though he added wanting "everyone else to have their piece." Last month alone, Strategy completed a $2.5 billion capital raise through newly created STRC preferred stock, using proceeds to acquire 21,021 BTC at an average price of $117,256. Michael Saylor's Strategy Raises $2.5B in Record Stock Offering to Buy More Bitcoin "Crypto treasuries are accelerating the convergence between traditional finance and crypto," Seth Ginns, Managing Partner at CoinFund, told Decrypt. The recent wave of Bitcoin treasury activity showed "clear demand for equity access to crypto tokens," Ginns added, with "tokens with strong fundamental backdrops" being prime candidates for treasury companies. At $360.98, Strategy's stock is down 1.46% on the day, after hitting a session low of $359.44. The shares have retreated from a previous close of $366.32 and now sit near the bottom of their daily range, according to Google Finance. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
an hour ago
- Wall Street Journal
TNB Tech Minute: Google Raises Its Equity Stake in TeraWulf to About 14% - Tech News Briefing
Full Transcript This transcript was prepared by a transcription service. This version may not be in its final form and may be updated. Speaker 1: Here's your morning TNB Tech Minute for Monday, August 18th. I'm Ariana Aspuru for The Wall Street Journal. Google is increasing its investment in the Bitcoin miner and artificial intelligence computing company TeraWulf to roughly $3.2 billion. This raises its equity stake to about 14%. TeraWulf said that Alphabet's Google will provide an incremental $1.4 billion backstop to support project-related debt financing. In exchange, Google will receive warrants to buy 32.5 million shares of TeraWulf. The funding supports TeraWulf's Lake Mariner data center expansion, adding 160 megawatts for Fluidstack with operations expected to start in the second half of 2026. Plus, Swiss tech company U-blox says Advent International has agreed to buy the company for about $1.3 billion via a public tender offer. U-blox, which is the provider of wireless and positioning semiconductors, said Advent's subsidiary launched an offer to buy it for roughly 1.05 billion Swiss francs in cash. Shares of U-blox will be de-listed from the SIX Swiss Exchange after the deal is completed. The transaction, which is subject to approval, is expected to be settled within the next six months. U-blox executives said the move will help the group pursue its long-term strategic objectives with greater flexibility, backed by a strong and experienced financial partner. Finally, in a research report, CGS analysts say CSE Global seems to be laying groundwork for steady data center growth via recurring maintenance contracts. The technologies company's data center segment has quickly scaled by delivering three-year compound annual growth rate of over 150%, and securing around $79 million in new US data center contracts year to date. That's your TNB Tech Minute. Join us again this afternoon for more.
