■ ETF · August 27, 2026
IDVO International Dividend ETF Offers 5.93% Yield, Outperforms Benchmark
Amplify CWP International Enhanced Dividend Income ETF (IDVO) yields 5.93%, nearly double SCHD, and has outperformed its benchmark since inception.
IDVO's Yield and Strategy
The Amplify CWP International Enhanced Dividend Income ETF (IDVO) provides a distribution rate of 5.93% based on its July monthly distribution, nearly double the 3.23% 30-day SEC yield of the Schwab U.S. Dividend Equity ETF (SCHD). IDVO is actively managed and sub-advised by Capital Wealth Planning and Seymour Asset Management. The fund invests in high-quality international large- and mid-cap companies, holding them directly or through American Depositary Receipts (ADRs). ADRs are advantageous because many have liquid U.S. options markets, facilitating covered call writing.
The managers start with companies from the MSCI ACWI ex USA Index and evaluate factors such as earnings growth, free cash flow generation, dividend growth, return on equity, market capitalization, and management quality. They have discretion to overweight or underweight countries, sectors, and individual companies based on their outlook.
Covered Call Approach
IDVO employs a tactical covered call strategy, selectively writing calls on individual holdings rather than mechanically across an entire index. Managers adjust strike prices, expiration dates, and overwrite levels based on market conditions. This approach aims to generate meaningful option income while preserving more upside participation than a traditional buy-write strategy.
Since inception through June 30, IDVO's net asset value has returned 111.16% cumulatively, outperforming its benchmark, the MSCI ACWI ex USA Index, which returned 95.01% over the same period. Few covered call ETFs have managed to beat their underlying benchmarks after accounting for option writing. The tactical nature allows skilled managers to avoid overwriting every position, potentially preserving upside while still collecting premiums.
Trade-offs and Costs
Active management brings trade-offs. IDVO charges a 0.65% expense ratio, notably higher than SCHD's passive 0.06% fee. The strategy relies heavily on manager skill, and there is no guarantee that the current team will continue to generate excess returns. Investors place significant trust in the managers' judgment, introducing active risk.
For those with a home-country bias toward U.S. equities, IDVO offers a way to diversify internationally while generating above-average income and participating in a strategy that has balanced yield with total returns. SCHD has returned 17.5% year to date as of June 30 and offers a 3.23% yield, with much of its income historically qualifying for favorable tax treatment due to its exclusion of REITs.
What it means for income investors
IDVO's higher yield and historical outperformance may appeal to income-focused investors seeking international diversification. However, its higher expense ratio and reliance on active management are important considerations when comparing it to passive options like SCHD.
Reporting based on: Yahoo Finance. Figures verified against market data where available.