COMMENTARY
The equity market rally that began in mid-April extended into June, albeit at a slower pace, as investors continued to look past near-term uncertainties in favor of a resilient economic backdrop and the potential for easing monetary policy later in the year. The S&P 500 notched modest gains having now delivered positive returns in 7 of the last 8 months, and finished near record highs, supported by solid corporate earnings expectations and better-than-feared consumer sentiment. Notably, markets focused on domestic fundamentals and central bank signals and remained remarkably steady in the face of geopolitical shocks. The CBOE Volatility Index remained low throughout the month, reflecting a constructive risk appetite as investors positioned for continued gains amid a supportive macro environment.
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OVERALL MORNINGSTAR™ RATING |
During June, DIVO returned 3.52% while the benchmark, the S&P 500 Index, returned 5.09% and the CBOE S&P 500 BuyWrite Index (BXM) returned 2.66%. Year-to-date, DIVO has returned 7.78% while the S&P 500 has returned 6.20%. While the Fund trailed the S&P 500 in June, it continued to deliver strong absolute performance as market leadership broadened beyond just mega-cap technology stocks—a favorable trend for DIVO’s diversified, dividend-oriented strategy. The Fund remains structurally underweight Information Technology relative to the S&P 500, given its focus on dividend-paying companies. While this underweight has been challenging over the last several years, broadening participation across sectors helped support overall returns this year as well as during June. Notably, Financials (+5.58%), Information Technology (+7.86%) and Industrials (+6.99%) were strong contributors, driven by both allocation and security selection while Consumer Staples(-4.55%) and Consumer Discretionary (-2.94%) detracted from returns.1 Positions that contributed most significantly included Goldman Sachs (GS), Meta Platforms (META) and IBM (IBM) while McDonalds (MCD) and Procter & Gamble (PG) were among the biggest detractors.
During June Merck (MRK) was added to the portfolio. This allocation helped increase the fund weight in Health Care after closing the UnitedHealth (UNH) position last month. Merck is a name that has been in the portfolio in the past, currently generating an attractive yield while exhibiting strong sales growth and robust free cash flow. Salesforce (CRM) was removed from the portfolio as the price continued to lag the sector as well as the broader market. Meta Platforms (META) and Microsoft (MSFT) were existing positions that received an increased allocation during the month.
Although the strong equity market performance limited call-writing opportunities compared to April and May, select opportunities still emerged. During the month calls were sold on Agnico Eagle Mines (AEM), Apple (AAPL) and Home Depot (HD). Many of the existing options from last month expired including American Express (AXP), Caterpillar (CAT), Meta Platforms (META) and Salesforce (CRM).
At the end of the month, approximately 6.8% of the portfolio was covered.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.
| Distribution Frequency: Monthly |
Distribution Rate: 4.73% |
30-Day SEC Yield: 1.70% |
Distribution Rate is the normalized current distribution (annualized) over NAV per share. Distributions have been classified as a return of capital and may be comprised of option premiums, dividends, capital gains, and interest payments. As of the most recent distribution, 70% was estimated to be return of capital. See 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.
Fund inception date: 12/13/2016. DIVO’s gross expense ratio is 0.56%. The performance data quoted represents past performance. Past performance does not guarantee future results. The 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 their original cost and current performance may be lower or higher than the performance quoted. Short-term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. For performance data current to the most recent month-end please 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.
| Sector | % Weight |
| Financials | 26.75% |
| Information Technology | 15.94% |
| Industrials | 15.54% |
| Consumer Discretionary | 14.35% |
| Communication Services | 8.14% |
| Consumer Staples |
6.56% |
| Health Care |
4.32% |
| Energy | 3.42% |
| Materials | 2.64% |
| Utilities |
2.34% |
TOP 10 HOLDINGS
| Ticker | Name | % Weight |
| IBM | Int'l Business Machines | 5.44% |
| META | Meta Platforms | 5.37% |
| RTX | RTX | 5.12% |
| MSFT | Microsoft |
5.05% |
| V |
Visa |
4.99% |
| HD | Home Depot | 4.98% |
| GS | Goldman Sachs | 4.94% |
| JPM | JPMorgan Chase | 4.86% |
| CME | CME Group | 4.80% |
| AXP | American Express | 4.60% |
All data as of 6/30/2025. Subject to change at any time. Fund holdings should not be considered recommendations to buy or sell any security. View Current Complete Holdings.
Index Definitions: All indexes are unmanaged and it’s not possible to invest directly in an index. S&P 500 Total Return Index—market-capitalization-weighted index of the 500 largest U.S. publicly traded companies by market value, and assumes distributions are reinvested back into the index. It does not include fees or expenses. CBOE S&P 500 BuyWrite Index (BXM)—tracks the performance of a hypothetical buy-write strategy on the S&P 500 Index. A “buy-write” strategy is generally one in which an investor buys a stock (or basket of stocks), and also writes covered calls that correspond to those holdings. CBOE Volatility Index (VIX) is a measure of implied volatility, based on the prices of a basket of S&P 500 Index options with 30 days to expiration. DIVO differs substantially from the S&P 500 Index and CBOE S&P 500 BuyWrite index, which are used for comparison purposes as widely recognized measures of U.S. stock market performance. While the returns of DIVO have exhibited positive (but varying) correlation to the indexes over time, DIVO may invest in different stocks and in different proportions than in the S&P 500 index and CBOE S&P 500 BuyWrite index.
1All percentages shown indicate total return of the sector for the month. 2A covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security.