Hot ETFs: Cybersecurity, Income & Bitcoin
(6:50) - Amplify Cybersecurity ETF: HACK
(12:45) -What Is Driving the Popularity of Option Income ETFs?
(19:00) - What Type of Investor Should Be Using Covered Call Products?
(23:50) - Amplify CWP Enhanced Dividend Income ETF: DIVO
(28:00) - Should You Be Using Single Stock Covered Call ETFs?
(33:10) - Amplify CWP International Enhanced Dividend Income ETF: IDVO
(37:00) - Breaking Down Amplify's Bitcoin ETF Products: BITY & BAGY
(43:40) - Episode Roundup: Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Christian Magoon, Founder and CEO of Amplify ETFs, about some intriguing areas of the market that have attracted investors amid ongoing market volatility: cybersecurity, income, and Bitcoin.
The global market for cybersecurity products and services is expected to witness immense growth as more companies incorporate AI into their operations—while criminals are also leveraging AI technology to amplify and intensify cyberattacks.
While many companies may cut discretionary spending this year due to rising economic uncertainty, cybersecurity remains an area they cannot afford to ignore.
Google parent Alphabet GOOGL recently announced a deal to acquire cybersecurity startup Wiz for $32 billion. We could see an increase in M&A activity in the cybersecurity space.
Launched in 2014, HACK was the first cybersecurity ETF designed to provide cost-effective exposure to companies in the growing cybersecurity industry.
Income-hungry investors have been piling into ETFs that use options strategies to generate attractive yields. In addition to offering high income, these strategies typically help reduce portfolio volatility.
The Amplify CWP Enhanced Dividend Income ETF DIVO focuses on high-quality large-cap companies with a history of dividend growth and writes covered calls on individual stocks. Meta Platforms META and Apple AAPL are among its top holdings.
While DIVO has significantly outperformed the market leader—JPMorgan Equity Premium Income ETF JEPI—both have underperformed the S&P 500 ETF (SPY) over the long term on a total return basis. Who are the ideal users of these products?
The Amplify International Enhanced Dividend Income ETF IDVO follows the same strategy as DIVO but invests in international stocks.
Newly launched Amplify ETFs combine two of the hottest trends: Bitcoin and income. They employ a covered call strategy tied to Bitcoin price exposure through the iShares Bitcoin Trust IBIT.
Tune in to the podcast to learn more. And be sure to watch for the next edition of ETF Spotlight! If you have any comments or questions, please email us at podcast@zacks.com.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Amplify CWP Enhanced Dividend Income ETF (DIVO): ETF Research Reports
JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
Amplify CWP International Enhanced Dividend Income ETF (IDVO): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
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