Amplify’s international dividend ETF surpasses its US counterpart in yield and total return, driven by higher payouts from non-US financials.
The Amplify CWP International Enhanced Dividend Income ETF (IDVO) has outperformed its US-focused sibling, DIVO, by 5 percentage points year-to-date and 10 points over 12 months. IDVO yields 5.6%, compared to DIVO’s mid-4% payout, due to higher earnings distributions from European, Japanese, and Canadian holdings.
DIVO, a $5.25 billion fund, relies on US mega-caps and a covered-call strategy managed by Capital Wealth Planning since 2016. IDVO, launched in 2022, applies the same strategy to non-US developed markets via ADRs tied to the MSCI ACWI ex-US Index, offering a structural yield advantage.
Foreign withholding taxes and a 105% payout ratio reduce IDVO’s net yield in taxable accounts, making tax-advantaged accounts the preferred vehicle for rotation.