The Amplify CWP Growth & Income ETF (QDVO) seeks to provide both capital appreciation and dividend income through a growth-focused investment strategy. This actively managed ETF targets companies that demonstrate strong growth characteristics while maintaining dividend-paying capabilities, combining growth potential with income generation in a single fund.
How It Works
QDVO employs an active management approach that screens for companies meeting specific growth criteria including earnings growth acceleration, revenue expansion, and improving profit margins. The fund's managers select dividend-paying stocks that exhibit these growth characteristics, creating a concentrated portfolio typically holding 30-50 positions. Portfolio construction emphasizes quality growth companies across various market capitalizations and sectors, with quarterly rebalancing to maintain optimal positioning based on fundamental analysis and growth momentum indicators.
Key Features
- Combines growth investing with 8.01% dividend yield, offering both capital appreciation potential and substantial current income
- Recently launched in August 2024, providing access to a fresh actively managed approach targeting growth-dividend hybrid strategy
- Zero expense ratio structure makes it cost-competitive compared to typical actively managed growth and income funds
Risks
- This ETF can lose value if growth stocks fall out of favor or if selected companies fail to meet growth expectations, potentially causing significant underperformance
- Active management risk means fund performance depends heavily on manager stock selection skills, which may underperform passive growth or dividend strategies
- Concentration in 30-50 holdings creates higher volatility than diversified funds, with individual stock disappointments having outsized portfolio impact during market downturns
Who Should Own This
Best suited for investors with medium-to-high risk tolerance seeking both growth and income over 3-5 year time horizons. Works as a satellite holding representing 10-20% of equity allocation for those wanting active management exposure. Appropriate for investors comfortable with new fund risk and seeking alternatives to traditional growth or dividend-focused strategies.