Amplify ETFs Enhances NDIV with Covered Calls, Targeting High Income and Capital Appreciation

Core Viewpoint - Amplify ETFs has enhanced the Amplify Energy & Natural Resources Covered Call ETF (NDIV) by incorporating a covered call strategy to increase income-generating capabilities while maintaining its focus on energy and natural resources equities [1][5]. Group 1: Fund Overview - NDIV aims to achieve a total annualized income of 10% or greater through a combination of option premium income and dividends, while providing exposure to energy and natural resources equities [2][4]. - The fund will track the VettaFi Energy and Natural Resources Covered Call Index, which applies a covered call overlay to a portfolio of dividend-paying companies in the relevant sectors [2][4]. Group 2: Income Generation - The targeted income profile of NDIV is supported by two cash flow sources: covered call premiums and dividends, with potential for additional returns linked to the performance of the underlying equity holdings [3][5]. - The fund is designed to attract investors seeking a balance between capital appreciation and monthly income, with a target income level of 10% and no anticipated K-1 form [5]. Group 3: Market Dynamics - Energy and natural resource companies have experienced strong momentum due to rising global energy usage, driven by factors such as artificial intelligence, U.S. reshoring initiatives, global electrification, and ongoing infrastructure investment [4]. - These dynamics have positively impacted cash flows and earnings across the sector, reinforcing its relevance in both capital appreciation and income-oriented investment strategies [4]. Group 4: Company Background - Amplify ETFs, sponsored by Amplify Investments, manages over $20 billion in assets as of January 31, 2026, and offers a range of actively managed and index-based ETFs focused on growth, income, and risk-managed strategies [6].