Active Management Proves Its Mettle: Amplify DIVO ETF Extends Lead

Amplify CWP Enhanced Dividend Income ETF US0321084099

The case for actively managed portfolios receives compelling support from the performance of the Amplify CWP Enhanced Dividend Income ETF (DIVO). A focused strategy blending high-quality equities with tactical options writing has delivered substantial returns for investors, particularly when measured against a prominent peer. Since May 2020, DIVO has significantly outperformed the popular JPMorgan Equity Premium Income ETF (JEPI), building a commanding lead in total return.

• Cumulative Return since May 2020: +116.08% (versus +89.79% for JEPI)
• Latest Monthly Distribution: $0.18264 per share (paid January 30)
• Assets Under Management (AUM) Growth: Amplify's AUM surged from $10 billion to $17 billion in 2025.

The performance gap stems from a fundamentally different methodology. Rather than tracking a broad index, DIVO’s management team curates a tight portfolio of just 20 to 25 select quality stocks. This concentrated approach allows for deliberate security selection, which appears to have added considerable value, especially during periods of market volatility. Investor confidence in this active model is strengthening, evidenced by a 70% expansion in Amplify’s managed assets over the past year.

Strategic Flexibility in Options Execution

A key differentiator lies in the implementation of its covered call strategy. DIVO does not mechanically write options on an entire index. Instead, the team employs a tactical, stock-specific approach to selling calls. This selective method provides crucial flexibility, helping to preserve more upside potential during strong bullish runs—a common limitation for more systematic derivatives-based income funds.

For income-focused shareholders, the stability of cash flow remains paramount. The fund continues its unbroken series of monthly distributions, with the latest payment of $0.18264 per share issued last Friday.

The Road Ahead for Investors

Looking forward, the adaptability of this focused portfolio will be tested as it navigates the prevailing interest rate environment. Savvy investors will monitor any potential adjustments within the core holdings of 20-25 positions, as these shifts offer direct insight into the management’s sector outlook. Furthermore, a critical question will be whether the fund’s substantial performance advantage continues to justify its 0.56% expense ratio, particularly if the gap with broader benchmarks like the S&P 500 narrows in a changing market climate.