Investment Outlook 2026: ETF Watch
Amplify ETFs CEO Christian Magoon breaks down key investment strategies for 2026 to:
- Navigate earnings projections and midterm-election year volatility with a disciplined, high‑quality equity and covered call approach
- Discover international opportunities amid growing market valuations
- Consider potential impacts of fed policy, liquidity, and supply and demand imbalances on scarce assets like silver and battery metals
Watch now to learn more!
Additional Resources
Related ETFs
- DIVO: Amplify CWP Enhanced Dividend Income ETF
- QDVO: Amplify CWP Growth & Income ETF
- IDVO: Amplify CWP International Enhanced Dividend Income ETF
- ISWN: Amplify BlackSwan ISWN ETF
- SILJ: Amplify Junior Silver Miners ETF
- BATT: Amplify Lithium & Battery Technology ETF
Transcript:
00:00
Hey, welcome to ETF Watch.
I'm Christian Magoon, CEO of Amplify ETFs, and happy 2026.
We're glad you're tuning in to hear about 6 ideas for 2026.
This is kind of our well-known outlook piece we do each year, but specifically focus on macro markets and unique opportunities in those areas over the coming 12 months.
We're going to cover 3 today, so if you want to learn more, you're going to have to look at the piece to see the full 6 that we've outlined for 26.
00:30
Let's get into the first one, which is next year will be a midterm election year.
And believe it or not, that has some unique market behavior historically, which we're going to get into.
First, however, we got to say from an earnings per share perspective, there's some positive growth out there forecasted for the S&P 500.
So that's a very positive backdrop that we're entering 2026 on.
01:00
However, as I mentioned, it's a midterm election year, and that's a double-edged sword for investors.
In fact, in general, we see about a 17% drawdown, which tends to happen in the front half of the year for the S&P 500.
That's the downside.
The upside is you see about a 31% rally after those lows over the next 12 months for the S&P 500 historically.
01:30
It's the best year to go forward from when you look at the four different election years that we've been able to chart historically.
So I think it's very important as you're looking at equity markets to focus on high quality, potentially own some covered call equity strategies, and just be very disciplined in how you're investing, especially in the first half of the year.
Look for those lows, and hopefully, historically, these trends continue.
02:00
So 2 ETFs in the Amplify lineup that might be worth your consideration are DIVO and QDVO.
DIVO is really a core focus product that has a bit of a tilt towards large cap value, high quality blue chip companies that are dividend payers.
In addition, the manager has the ability to write covered calls.
On the other side of the coin is QDVO.
It's the growth version of DIVO.
02:30
You'll see all your favorite growth stocks in its holdings.
In addition, the manager has the ability to write covered calls tactically on a portion of the portfolio.
So for investors, they participate in the growth of these stocks, but also the manager has the ability to potentially generate income from writing covered calls.
Unlike most ETFs focused on growth, not all of your total returns should come from capital appreciation — you also see some option income.
03:00
So consider QDVO and DIVO in this environment in 2026 for their balanced approach to equity investing, plus the ability to have covered call options to mitigate some uncertainty.
Another area we're highlighting in 2026 for opportunities is international equities, specifically developed international equities.
And really it boils down to valuation.
03:30
If you take a look at the forward PEs of the S&P versus developed markets internationally, you'll see a big difference.
The S&P’s forward PE is 22, while developed markets are only 15.
We think that discount is notable, and we've seen some outperformance in 2025 internationally relative to the U.S.
Amplify has two international ETFs worth your consideration depending on your needs.
04:00
If you're more interested in balancing growth and income, take a look at IDVO, an actively managed ETF buying international stocks with the ability to write covered calls.
The managers have a strong track record, and it allows you to participate in growth plus option income.
On the other side is a very defensive play — the International Black Swan ETF, ISWN.
04:30
This owns a barbell of assets: about 90% U.S. Treasuries and 10% LEAP options on international stocks.
This setup aims to weather potential market volatility.
So take a look at IDVO and ISWN for international options in 2026.
05:00
Our third and final factor in our six for 26 is the macro backdrop expected in 2026: Fed policy and supply/demand imbalances.
We think scarce assets could benefit in a lowered interest-rate environment with potential dollar printing and inflationary moves from the Fed.
Two areas with recent momentum: silver equities and battery‑metal equities.
05:30
These are both scarce assets important for today's economy — silver as a store of value, and battery metals for industrial and technological demand (AI, data centers, electronics).
In 2025, SILJ and BATT saw strong momentum.
06:00
We think this momentum could continue into 2026 given supply/demand imbalances and the broader macro/Fed environment.
So check out SILJ and BATT.
If you enjoyed these first three ideas, we have three others in our 6 for '26 outlook.
06:30
If you want to find out more, visit amplifyETFs.com/insights.
Our insights section includes this and a variety of perspectives on opportunities today and into 2026.
I'm Christian Magoon.
Thanks for watching Amplify’s ETF Watch.
Indexes are unmanaged and it’s not possible to invest directly in an index. The S&P 500 Total Return Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The MSCI EAFE Index is designed to measure the equity market performance of developed markets outside the U.S. and Canada. MSCI Emerging Markets (EM) Index is designed to measure large- and mid-cap representation across emerging market countries. Silver is represented by the S&P CSCI Silver Index which is designed to measure the price performance of silver through the price changes of silver futures contracts.
13.9% S&P 500 Earnings Per Share Growth Forecast per Factset, December 2025.
Carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Covered call risk is the risk that the Fund will forgo, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline.
There is no guarantee distributions will be made. The Funds may not achieve their desired outcomes.
DIVO: The Fund may invest in mid-capitalization companies. This may cause the Fund to be more vulnerable to adverse general market or economic developments because such securities may be less liquid and subject to greater price volatility than those of larger, more established companies. Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.
QDVO: The fund is new with limited operating history. Growth stocks tend to be more volatile than certain other types of stocks and their prices usually fluctuate more dramatically than the overall stock market. Large-capitalization companies may be less able than smaller-capitalization companies to adapt to changing market conditions. The Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund.
IDVO: An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. There can be no assurance that the Fund’s investment objectives will be achieved. The Fund is subject to management risk because it is actively managed. Covered call risk is the risk that the Fund will forgo, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. Investments in foreign securities involve greater volatility and political, economic, and currency risks and differences in accounting methods. Investments in emerging market issuers are subject to a greater risk of loss than investments in issuers located or operating in more developed markets. There is no guarantee that a company will pay or continually increase its dividends. The Fund intends to estimate annual income and pay in monthly installments. In doing so, some portion of the distribution could be considered a return of capital for tax purposes.
Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.
© 2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. IDVO received 5 stars among 83 funds in the Derivative Income category for the overall and 3-year periods ending 12/31/25.
ISWN: The Fund is not actively managed. The Fund invests in securities included in its Index regardless of their investment merit.
The Fund’s return may not match or achieve a high degree of correlation with the return of the underlying Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index. The use of derivative instruments, such as options contracts, can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives. Investing in options, including LEAP and/or FLEX Options, and other instruments with option-type elements may increase the volatility and/or transaction expenses of the Fund. An option may expire without value, resulting in a loss of the Fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund.
The Fund’s investments in options contracts will primarily be long-term equity anticipation securities known as LEAP and/or FLEX Options. LEAP and/or FLEX Options are long-term exchange-traded call options that allow holders the opportunity to participate in the underlying securities’ appreciation in excess of a specified strike price without receiving payments equivalent to any cash dividends declared on the underlying securities.
Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price. An “in-the-money” call option contract is an option contract with a strike price that is below the current price of the underlying reference asset.
The S-Network International BlackSwan Index (Ticker: ISWNXT) holds U.S. Treasury securities and EFA LEAP and/or FLEX Options. On each rebalancing date, the Index targets 90% of its index market capitalization in U.S. Treasury securities and 10% of its index market capitalization in EFA LEAP and/or FLEX Options. The weighting of U.S. Treasury securities is determined by the option reconstitution schedule. ISWNXT is a trademark of the Index Provider and has been licensed for use for certain purposes by the Adviser. The Index Provider is not affiliated with the Trust, the Adviser, either Sub-Adviser or the Distributor. The Fund is entitled to use the Index pursuant to a sub-licensing agreement with the Adviser. It is not possible to directly invest in an index.
SILJ: Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual issuer volatility than a diversified fund. Funds that are less diversified across countries or geographic regions are generally riskier than more geographically diversified funds and risks associated with such countries or geographic regions may negatively affect a Fund.
Investments in small-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. There are risks associated with the worldwide price of silver and the costs of extraction and production. Worldwide silver prices may fluctuate substantially over short periods of time, so the Fund’s share price may be more volatile. Several foreign countries have begun a process of privatizing certain entities and industries. Privatized entities may lose money or be renationalized. The Fund invests in some economies that are heavily dependent upon trading with key partners. Any reduction in this trading may cause an adverse impact on the economy in which the Fund invests.
The Fund’s return may not match or achieve a high degree of correlation with the return of the Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index.
BATT: The Fund is not actively managed. The Fund invests in securities included in its Index regardless of their investment merit. Narrowly focused investments typically exhibit higher volatility. A portfolio concentrated in a single industry, such as lithium battery technology, makes it vulnerable to factors affecting the companies.
The Fund may face more risks than if it were diversified broadly over numerous industries or sectors. The Fund has become more susceptible to potential operational risks through breaches in cybersecurity. The Fund invests in securities that are issued by and/or have exposure to, companies primarily involved in the metals and mining industry. Investments in metals and mining companies may be speculative and subject to greater price volatility than investments in other types of companies. The exploration and development of metals involves significant financial risks over a significant period of time, which even a combination of careful evaluation, experience and knowledge may not eliminate. Rare earth metals have more specialized uses and are often more difficult to extract. The increased demand for these metals has strained supply, which could adversely affect the companies in the Fund’s portfolio. Some of the companies in which the Fund will invest are engaged in other lines of business unrelated to the mining, refining and/or manufacturing of metals and these lines of business could adversely affect their operating results.
The Fund’s assets are concentrated in the materials sector, which means the Fund will be more affected by the performance of the materials sector than a fund that is more diversified. The Fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time. The Fund will invest in the securities of non-U.S. companies. Investments in emerging market issuers are subject to a greater risk of loss than investments in issuers located or operating in more developed markets. The mining, refining and/or manufacturing of metals may be significantly affected by regulatory action and changes in governments. Small and/or mid-capitalization companies may be more vulnerable to adverse general market or economic developments. Electric vehicle technology is relatively new and is subject to risks associated with a developing industry.
The EQM Lithium & Battery Technology Index (BATTIDX) seeks to provide exposure to global companies associated the development and production of lithium battery technology and/or battery storage solutions; the exploration, production, development, processing, and/or recycling of the materials and metals used in lithium battery chemistries such as Lithium, Cobalt, Nickel, Manganese, Vanadium and/or Graphite; and/or the development and production of electric vehicles.
Distributions classified as return of capital, which may include option premiums, dividends, capital gains, and interest, reduce an investor’s cost basis in Fund shares. This can result in higher future taxes upon sale, even if shares are sold at a loss relative to the original investment.
This information does not constitute, and should not be considered a substitute for any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
Amplify ETFs are distributed by Foreside Fund Services, LLC.
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in Amplify Funds statutory and summary prospectus, which may be obtained by calling 855-267-3837 or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Amplify ETFs are distributed by Foreside Fund Services, LLC.

