Investors Need To Buy This High-Yield, 11% ETF That Pays Cash Every Month

Is it possible for growth and income investors to combine the best of both worlds in a single exchange traded fund (ETF)? It’s absolutely possible if you hold shares of a hidden gem among next-generation funds, the Amplify CWP Growth & Income ETF (NYSEARCA:QDVO).

There are plenty of passive income funds out there, but the Amplify CWP Growth & Income ETF is different. It’s an ETF that shows, beyond a shadow of a doubt, that investors don’t have to sacrifice growth while seeking income-generation opportunities. So, let’s discover how you can amplify your returns in 2025 with the QDVO ETF.

Powerful Payouts Every Month

When I say that the Amplify CWP Growth & Income ETF is high-yield, I’m not kidding around. It’s Amplify’s stated mission with the QDVO ETF to provide “capital appreciation” as well as “high current income.”

The distribution rate (i.e., the expected annual yield prior to fees) for the Amplify CWP Growth & Income ETF is a massive 11.06%. This, by itself, should greatly enhance your return on capital if you simply hold the fund for the long term.

There’s even more to the story, though. Whereas many high-yield funds offer quarterly distributions, the Amplify CWP Growth & Income ETF will pay you monthly. What could be more exciting than seeing a cash payment in your investment account each and every month?

This isn’t just about excitement, by the way. Getting cash in your account every month means that you can reinvest the distributions sooner than you could with quarterly payouts. Consequently, you can really leverage the magic of compounding with the Amplify CWP Growth & Income ETF.

Granted, there’s an annualized management fee that will automatically be deducted from the share price of the QDVO ETF. This is known as the expense ratio, and it’s 0.55% of the share price per year for the Amplify CWP Growth & Income ETF. Still, that’s a small price to pay for an 11.06% yield and monthly reinvestment opportunities.

Here’s How the QDVO ETF Generates Income

As we’ll discuss soon, the Amplify CWP Growth & Income ETF holds a basket of well-known stocks. However, it’s wrong to assume that this fund generates its high income from the dividends of those stocks.

Instead, the Amplify CWP Growth & Income ETF derives its sizable monthly income from an option writing (selling) strategy. More specifically, the fund writes covered call option contracts on the stocks that the ETF holds.

Without getting too deep into the topic of options trading, writing covered calls is a way to generate extra income from stocks, though there is the trade-off of potentially limiting the share-price upside. Still, it’s not a bad trade-off if this strategy allows for an 11.06% annual yield prior to fees.

And frankly, the upside limits from the covered call writing strategy aren’t too extreme. Over the past month, the share price (not including the monthly distributions) of the Amplify CWP Growth & Income ETF increased by roughly 7%. Then, if we include the yield on top of that, we’re looking at a month of outstanding return on capital for QDVO ETF holders.

Now, you might wonder whether you can simply buy the basket of stocks and write covered calls yourself. That’s an interesting thought for do-it-yourself investors, no doubt.

Yet, it would be time-intensive and difficult to learn the ins and outs of covered call writing, and then write covered calls on more than 50 different stocks. The Amplify CWP Growth & Income ETF includes 51 stocks, so it makes sense to just pay the 0.55% expense ratio and let the fund managers do all of the legwork.

Exposure to High-Growth Names

While the most obvious feature of the Amplify CWP Growth & Income ETF is its high yield that’s distributed monthly, there’s also the growth aspect of this fund. As a general rule, price appreciation potential should come from exposure to great businesses, and the QDVO ETF holds shares of famous, profitable companies.

I invite you to peruse the holdings list for the Amplify CWP Growth & Income ETF as you’ll undoubtedly recognize many of the fund’s top holdings. These include the stocks of market juggernauts like NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN).

There are also some names outside of the technology sector, such as Visa (NYSE:V) and Home Depot (NYSE:HD). However,  the Amplify CWP Growth & Income ETF is heavily weighted toward large-cap technology stocks.

This shouldn’t be a deal breaker since NVIDIA, Apple, and other high-growth tech names could provide excellent share-price appreciation over the long term. Meanwhile, the covered call strategy can juice these stocks for extra income every month.

It’s a winning combination that you won’t find in many funds on the market today. Therefore, I encourage investors to pursue powerful income without giving up on robust growth and try out the Amplify CWP Growth & Income ETF.