Amplify CWP Growth & Income ETF: A Conservative Approach to Growth and Income

The Amplify CWP Growth & Income ETF (QDVO) is an actively managed fund that combines growth with selective income opportunities through option writing. It has a conservative yield and a low expense ratio. The fund uses high conviction growth investing and a risk management approach to minimize losses. QDVO has a strong track record with a 3-year average annual return of 21.9%.

The Amplify CWP Growth & Income ETF (QDVO) is an actively managed fund that combines growth with selective income opportunities through option writing. With a conservative yield and a low expense ratio, QDVO stands out as an attractive option for income investors seeking long-term growth.

Yield and Portfolio Composition

QDVO offers an annualized yield of over 8.5%, a result of its strategic use of option writing and dividends from its holdings. The fund's portfolio is composed of approximately 48 stocks, with a significant concentration in the top 10 holdings, which account for around 61% of the fund. The sectoral allocation is notably different from the QQQ, with a focus on financials, communications, and healthcare, while tech remains a substantial but less dominant component.

Methodology and Performance

QDVO's methodology involves selecting a portfolio of fundamentally strong growth stocks with strong earnings, revenue growth potential, and robust cash flow and balance sheets. The fund's active bets and tactical option plays are designed to generate alpha over passive market weight-based approaches. Despite the option layer's potential to generate significant returns, the fund's yield is balanced and not overly aggressive, minimizing the risk of structural erosion.

Performance data for QDVO shows an impressive 3-year average annual return of 21.9%. This strong track record is supported by consistent execution, with the fund demonstrating resilience during bull markets and drawdowns alike. The active management and strategic use of options have contributed to QDVO's outperformance compared to passive growth ETFs.

Conclusion

The Amplify CWP Growth & Income ETF (QDVO) offers a balanced approach to growth and income, with a conservative yield and a low expense ratio. Its high conviction growth investing and risk management approach have resulted in a strong track record, making it an attractive option for core growth-oriented income portfolios.

References:

[1] https://seekingalpha.com/article/4802860-qdvo-etf0active-option-writing-meets-high-conviction-growth