Latest news with #DIVO
Yahoo
29-05-2025
- Business
- Yahoo
Hot ETFs: Cybersecurity, Income & Bitcoin
(1:15) - What Kind of Growth Can We Expect From The Cybersecurity Industry? (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@ 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@ 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 Investment Research
Yahoo
15-05-2025
- Business
- Yahoo
What's Behind the Surge in Options Income ETFs?
Income-hungry investors have been piling into ETFs that use options to deliver juicy dividends. We've seen a surge in launches of these products recently, as providers employ innovative strategies to package derivatives within the ETF structure to meet rising investor demand. In addition to offering high yields, these strategies generally help reduce portfolio volatility. However, investors should remember that there's no free lunch in investing. These products tend to perform best in sideways markets and often underperform during strong bull runs. That said, they can provide some downside protection when stocks fall. Roni Israelov, Senior Quantitative Researcher at Citadel, refers to these strategies as a 'Devil's Bargain.' His research shows that trading options to generate income can undermine long-term investment returns. Our own analysis of the most popular derivatives-backed ETFs also suggests that investors may be leaving significant returns on the table in their pursuit of high income. Nevertheless, these products have attracted substantial inflows this year, as market volatility has shaken investor confidence. The JPMorgan Equity Premium Income ETF JEPI uses proprietary research to select around 130 stocks and writes S&P 500 Index call options to generate income. Its top holdings include NVIDIA (NVDA), Microsoft MSFT, and Meta META. JEPI and its sister fund, the JPMorgan Nasdaq Equity Premium Income ETF JEPQ, are among the top asset gatherers this year. The Amplify CWP Enhanced Dividend Income ETF DIVO aims to deliver high income from both dividends and covered calls. Its managers focus on high-quality large-cap companies with a history of dividend growth and write covered calls on individual stocks. While DIVO has outperformed JEPI, both have significantly lagged the S&P 500 over the long term. JEPQ and the Global X Nasdaq 100 Covered Call ETF QYLD continue to underperform the Nasdaq 100 ETF QQQ. To learn more about these ETFs, please watch the short video above. 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports 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 JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research 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
