DIVO Commentary August 2026

August was a tale of two markets: optimism powered stocks higher, while rising geopolitical and inflation concerns rattled fixed income. Equities rallied early in the month as the AI trade reignited, and another round of strong corporate earnings pushed the S&P 500 to new all-time highs. Sentiment shifted mid-month after escalating tensions in Iran drove energy prices higher, fueling a rise in Treasury yields and bond market volatility that prompted intervention from Treasury Secretary Scott Bessent. Despite sticky inflation, a disappointing PCE (personal consumption expenditures) report, and a hawkish Jackson Hole speech from Fed Chair Warsh, markets ultimately held on to their gains. The month's dominant theme was rising Treasury yields, with the 30-year briefly topping 5.3% and the 10-year approaching 4.8%, levels near multi-decade highs. While higher rates are often viewed as a headwind, the reason behind the increase matters. Unlike recent years, when inflation drove yields higher, this rise is increasingly being led by stronger real yields, reflecting an economy that continues to expand alongside healthy corporate earnings. That backdrop helps explain why both interest rates and stock prices remain elevated. Markets are now pricing in a roughly 65% probability of a rate hike in September, yet equities remained only modestly below their record highs. Ultimately, markets tend to favor clarity, and recent price action may suggest that investors are becoming more comfortable with the prospect of higher rates in a resilient economy.

During the month of August, the Amplify CWP Enhanced Dividend Income ETF (DIVO) returned 3.36% (at NAV), while the benchmark, the S&P 500 Index, returned 2.72%. DIVO has returned 12.00% (NAV) year-to-date compared to 13.14% for the S&P 500 Index, with DIVO making up ground as the broader market remains range-bound. The Fund continues to seek a high level of risk-adjusted total return, which can limit upside participation during sharp risk-on environments; however, the current range-bound market environment is very favorable for the covered call strategy that DIVO follows. DIVO benefited from being more concentrated than the benchmark, as security selection in Materials and Healthcare helped the Fund outperform the benchmark despite having a more diversified sector exposure and lower concentration in mega-cap technology stocks, which were the biggest contributors to the S&P 500 Index performance. The sectors contributing most to Fund performance during August were Materials (+28.86%) and Information Technology (+7.29%) while Consumer Discretionary (-8.30%) and Communication Services (-2.54%) detracted from returns.¹ Agnico Eagle Mines Ltd. (AEM), Microsoft Corp. (MSFT), and Amgen Inc. (AMGN) were the top contributors, while TJX Companies Inc. (TJX) and Alphabet Inc. (GOOGL) were the primary detractors.

During August, new positions were initiated in CF Industries Holdings Inc. (CF) and Freeport-McMoRan Inc. (FCX), while the Fund sold out of its positions in Norfolk Southern Corp. (NSC) and FedEx Freight Holding Company Inc. (FDXF). The NSC position was exited following strong appreciation, which made the risk-reward profile less compelling, while FDXF was sold after being received through the FedEx Corp. (FDX) freight business spinoff. The Fund was active in writing covered calls against Microsoft Corp. (MSFT), Agnico Eagle Mines Ltd. (AEM), Chevron Corp (CVX), Walmart Inc. (WMT), Marathon Petroleum Corp. (MPC), Merck & Co Inc (MRK) and Verizon Communications Inc. (VZ). DIVO ended the month with six covered calls written against portfolio holdings representing notional coverage of 7.51% of the Fund’s portfolio.²

The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For most recent month-end performance, visit DIVOETF.com.

YIELD

Distribution Rate is the normalized current distribution (annualized) over NAV per share. Distributions may include income, capital gains, or return of capital and may change during the year. Details are provided in the Fund’s Form 19(a)-1. There is no guarantee the ETF will pay a distribution. 30-Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among bond funds. It is based on the most recent month end. This figure reflects the income earned from dividends – excluding option income – during the period after deducting the Fund’s expenses for the period.

PERFORMANCE

Fund inception date: 12/13/2016. DIVO's total expense ratio is 0.56%.The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For most recent month-end performance, visit AmplifyETFs.com/DIVO. Brokerage commissions will reduce returns. NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The closing price is the last price at which the fund traded.

All data as of 8/31/2026. Subject to change at any time. Fund holdings should not be considered recommendations to buy or sell any security.
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